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Department of State Development, Infrastructure and Planning Annual Report 2013-14

The Department of State Development, Infrastructure and Planning is responsible for driving the economic development of Queensland.

© State of Queensland, September 2014. Published by the Department State Development, Infrastructure and Planning, 100 George Street, Brisbane Qld 4000.

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Attribution: The State of Queensland, Department of State Development, Infrastructure and Planning Annual Report 2013-2014.

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ISSN 1839-4582

Department of State Development, Infrastructure and Planning Annual Report 2013-14

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ContentsLetter of compliance ................................................................................................ 1

Director-General’s message ..................................................................................... 2

About the Department .............................................................................................. 4 Operating environment .............................................................................................. 6 Future direction ......................................................................................................... 7

Government’s objectives for the community ............................................................ 9 Driving business and economic growth ...................................................................... 9 Leading infrastructure policy and planning for the state ............................................. 9 Reforming Queensland’s planning system ............................................................... 10 Major project assessment, approval, facilitation and delivery .................................. 10 Red tape reduction ...................................................................................................11 Working across government—a collaborative approach ............................................11

Achieving outcomes for the community ................................................................. 14 Champion the interests of business and industry .................................................... 14 Fast-track delivery of major resource and industrial development projects .............. 17 Diversify and strengthen regional and state economies ........................................... 19 Assist property and construction industries to grow and flourish through streamlined planning processes ..............................................................................23 Re-empower local governments and their communities to plan for their futures ....... 25 Improve service delivery .......................................................................................... 26

Performance against service standards ................................................................. 29 Performance data .................................................................................................... 29 Discontinued measures ........................................................................................... 35

Summary of financial performance ........................................................................ 37

Governance .............................................................................................................41 Organisation structure ............................................................................................. 41 Executive team ........................................................................................................ 41 Governance framework ............................................................................................ 46 Governance committees .......................................................................................... 47 Ethics and integrity ..................................................................................................50 Risk management .................................................................................................... 51 Accountability.......................................................................................................... 51 Information management and recordkeeping .......................................................... 53

Our workplace, our people ..................................................................................... 55 Workforce profile ..................................................................................................... 55 Managing our workforce .......................................................................................... 56

Financial statements .............................................................................................. 59

Abbreviations ....................................................................................................... 118

Glossary ................................................................................................................ 120

Contact us ............................................................................................................ 121

Department of State Development, Infrastructure and Planning Annual Report 2013-14 - i -

Figures Figure 1 Businesses reporting improved activity as a result of departmental

programs........................................................................................................ 15

Figure 2 Number of clients accessing industry support services ................................... 16

Figure 3 Average percentage reduction in assessment timeframes for coordinated projects .......................................................................................................... 18

Figure 4 Projects that meet timeframes and budgets ................................................... 19

Figure 5 Royalties for the Regions ................................................................................ 21

Figure 6 New business opportunities ........................................................................... 22

Figure 7 Stakeholder satisfaction with simplified planning system .............................. 25

Figure 8 Stakeholder satisfaction ................................................................................ 27

Figure 11 Our Governance Framework ............................................................................ 46

Figure 12 Employees by annual salary ........................................................................... 55

Figure 13 Employees by age group ................................................................................ 56

Tables

Table 1 Analysis - Operating result ............................................................................. 37

Table 2 Statement of financial position – Assets and Liabilities ................................. 39

Table 3 Statement of Comprehensive Income for the year ended 30 June 2014 ........... 39

AppendicesAppendix 1 Government bodies .............................................................................. 111

Appendix 2 Compliance checklist ............................................................................ 115

Department of State Development, Infrastructure and Planning Annual Report 2013-14 - ii -

Figure 10 Expenses by category for the year ended 30 June 2014...................................38

Figure 9 Income by category for the year ended 30 June 2014...................................... 37

Director-General’s message I am very pleased to present the 2013–14 Annual Report for the Department of State Development, Infrastructure and Planning (DSDIP). It’s been a busy year for the department, with many significant milestones met and outcomes achieved. We have continued to strengthen our role as the central enabling agency driving Queensland’s economic prosperity. Our delivery of innovative and sustainable outcomes successfully balances the economic opportunities available to Queensland and the impacts of development on the environment. The Governing for Growth strategy creates an environment where business and industry can invest, innovate, grow and create new jobs for the next decade. These reforms will unlock productivity and expedite economic growth, improve economic performance and increase business confidence. A key action was the department’s release of the Queensland Ports Strategy in May, the blueprint for managing and improving the efficiency and environmental management of the state’s ports network. Royalties for the Regions is transforming regional Queensland, delivering vibrant communities and driving economic growth. More than $230 million has been committed for investment across the regions over the past year. The Mary Valley Economic Development Strategy is revitalising the region and restoring community stability with government property sales soaring past the 150 mark.

To open up the Galilee Basin to mining, the Galilee Basin Development Strategy outlines initiatives to help lower upfront costs and encourage greater investment across the basin’s southern and central coal resources. Defence Industries Queensland is contributing to diversifying our regional and state economies by lifting the strategic profile of the state’s defence capability, boosting growth in the local defence sector, and driving defence investment in Queensland. Reform of the state’s planning system, a key pledge of government in Getting Queensland Back on Track to empower local governments and their communities and facilitate economic development, continues to deliver real outcomes for the property and construction sector. The State Planning Policy began in December, replacing multiple planning policies and providing local governments with better tools to plan for their communities and streamline and clarify assessment and approval processes. The State Assessment and Referral Agency (SARA) is benefitting businesses, individuals and local authorities through timely approvals for developments, which contributes to creating jobs and boosting construction and economic activity. The Regional Planning Interests Act 2014 commenced in June and seeks to strike an appropriate balance between protecting priority land uses and delivering a diverse and prosperous economic future for our regions.

Department of State Development, Infrastructure and Planning Annual Report 2013-14 - 2 -

We are delivering enhanced economic and social outcomes by providing a centralised function for identifying, assessing and managing the state's property-based assets to their fullest potential. We launched the Government Land for Accommodation and Support Services program to allocate surplus state government land to not-for-profit organisations, enabling them to develop much needed accommodation and other facilities to support vulnerable Queenslanders. The Coordinator-General continues to streamline environmental impact assessment processes to improve the planning, delivery and coordination of large-scale projects that drive economic growth. Six projects were approved potentially attracting investment of $38.7 billion and more than 22 000 jobs. This year also saw the continuation of the integrated resort development process with the department overseeing the transformation of Queen’s Wharf Brisbane into a unique and vibrant world-class precinct that will be a drawcard for international and domestic visitors, as well as providing thousands of jobs for Queenslanders. Two integrated resorts in regional Queensland were also short-listed to proceed to the next stage of development. We are managing delivery of the Gold Coast 2018 Commonwealth GamesTM sporting venue infrastructure and the Commonwealth Games Village. The Games are estimated to generate up to $2 billion in investment and 30 000 jobs.

During the year two new Priority Development Areas were declared on the Gold and Sunshine Coasts. These areas will support economic development through knowledge based employment, retail and commercial uses, and building infrastructure. On behalf of the State, the department led the completion of the Strategic Assessment of the Great Barrier Reef Coastal Zone which describes how we identify and protect matters of national environmental significance in the zone.

The Public Sector Renewal Program remains a high priority as we seek continuous improvement with the goal of being the best, most responsive and respected public service in the nation. This is underpinned by our embedding of the public sector values: customers first, ideas into action, unleash potential, be courageous, and empower people. We continue to strive towards greater economic prosperity for all Queenslanders. With the support of the Premier, Deputy Premier and Assistant Minister for Planning Reform, we are making a real difference for business, industry and local government in this state.

I look forward to continuing to work with our professional and committed colleagues who share the vision of a bright future for all Queenslanders.

David Edwards

Director-General

Department of State Development, Infrastructure and Planning


About the department

The Department of State Development, Infrastructure and Planning exists to deliver Queensland’s economic prosperity by championing the interests of business and industry.

We achieve this by driving business and economic growth, leading infrastructure policy and planning for the state, reforming Queensland’s planning system, and assessing, approving, facilitating and delivering major projects.

The department is actively working to accomplish these objectives by:

ensuring a clear understanding across government that the economic development agenda is a key driver of government activity

providing policy and forward planning that improves certainty for the private sector and reduces risks to projects, thereby encouraging investment and economic growth

ensuring timely delivery of infrastructure and major and coordinated projects that drive economic growth and provide better value for money

streamlining processes and reducing red tape and assessment timeframes

negotiating with the Australian Government to deliver a one-stop-shop

for Commonwealth environmental impact assessments and approvals

reforming the planning system, streamlining approval timeframes and facilitating economic growth

underpinning service delivery with strong leadership, sound governance and efficient support services.

This is supported by our reform program, which aims to enhance Queensland’s competitive position by reducing the cost of doing business in Queensland and providing certainty of policy, process and decision making.

The department was established in April 2012 and is responsible to Parliament through the Deputy Premier and Minister for State Development, Infrastructure and Planning, and is constituted under the Administrative Arrangements.

Our groups

Coordinator-General

Under the State Development and Public Works Organisation Act 1971, the Coordinator-General has wide-ranging powers to plan, deliver and coordinate large-scale projects that are vital to the economic development of Queensland, while ensuring that the potential environmental impacts are properly managed.

Our vision Drive the economic development of Queensland


State Development

State Development is tasked with championing the interests of business and industry in Queensland and removing regulatory bottlenecks and impediments to investment. It also plays a pivotal role in the development of economic policy and strategies, as well as leading infrastructure policy development for Queensland.

Planning and Property

The Planning and Property group delivers a planning reform program to give Queensland the best planning and development assessment system in Australia. The group also ensures the state’s property-based assets are identified, assessed and managed to their full potential, now and into the future.

Major Projects Office

The Major Projects Office supports the delivery of the government’s community objective to build a four pillar economy by providing timely assistance for the delivery of infrastructure, focusing on complex and high profile projects to maximise state development benefits and attracting major tourism development to Queensland.

Regional Services

Regional Services provides an integrated suite of business, industry, regional development and land use planning services on behalf of, or in partnership with, a range of Queensland Government departments.

Economic Development Queensland

This is a commercialised business unit within the department delivering land solutions to facilitate economic growth and development for community purposes.

It plays a key role in streamlining and fast-tracking development throughout the state.

Organisational Support and Reform

Organisational Support and Reform provides business and corporate support services to the department’s business groups, the Department of Local Government, Community Recovery and Resilience and the GasFields Commission Queensland, to enable them to effectively deliver government priorities.

Legislation

Our work is principally governed by the following legislation:

State Development and Public Works Organisation Act 1971 (SDPWOA)—an Act setting out the powers of the Coordinator-General to plan, assess, approve and coordinate, and/or undertake infrastructure and other economic development through a coordinated system of public works organisation, environmental coordination and related purpose projects.

Sustainable Planning Act 2009 (SPA)—an Act to achieve ecological sustainability through managing the process by which development takes place.

Economic Development Act 2012—an Act about economic development and development for community purposes. The Act also establishes the Commonwealth Games Infrastructure Authority.

For other legislation administered by our department view the Administrative Arrangements.


https://www.qld.gov.au/about/how-government-works/government-responsibilities/assets/administrative-arrangements-order-no-2-2013.doc

https://www.qld.gov.au/about/how-government-works/government-responsibilities/assets/administrative-arrangements-order-no-2-2013.doc

Machinery of government changes

The GasFields Commission was established as an independent statutory body on 1 July 2013 under the GasFields Commission Act 2013, to manage and improve the sustainable coexistence of

landholders, regional communities and the onshore gas industry. The Commission has the power to review legislation and regulation; advise on coexistence issues; convene parties to resolve issues; and make recommendations to government and industry.

Operating environment The Queensland economy grew by 3.6 per cent over the previous financial year, noticeably higher than the equivalent rate for the rest of Australia. This growth primarily occurred on the back of strong business investment in both the resources sector and exports. However, the state still faces a high level of debt, which is constraining the government’s ability to invest in high benefit-cost ratio projects that can help to lift productivity and improve overall economic performance.

Economic growth is forecast at 3 per cent in 2014-15, before rising to 6 per cent in 2015-16, the fastest of all states in Australia. Supported by sustained low interest rates, rising asset prices and a lower exchange rate, this short-term economic growth is expected to be underpinned by household consumption growth, a recovery in dwelling investment and a significant contribution from net exports.

This forecast growth will likely be assisted by low borrowing costs, rising rental yields and accelerating housing price growth. Meanwhile, the state’s labour market shows continued improvement in employment conditions supported by some recovery in the labour-intensive household sector, albeit at lower rates than originally forecast.

The resources sector is moving from an investment phase towards more of an export phase. For the past three years, business investment has been boosted by capital investment in LNG projects, totalling more than $60 billion. With this investment peaking in the past year, other sectors of the economy, especially exports and construction, will increasingly contribute to economic growth.

There are a number of economic challenges that must be considered to ensure economic growth into the future, including dealing with increased international competition, significant cost pressures and how to best lift productivity levels. Without a lift in productivity, a substantial budget deficit may re-emerge within the next few years, affecting the cost of living and quality of public services.

This highlights an argument for further sustained policy action. The department has already begun the necessary adjustment of our role to address the major demographic, economic and fiscal challenges ahead.

The Governing for Growth economic framework sets out clear strategic priorities and determined action to boost Queensland’s economy and grow jobs.


This strategy aligns with The Queensland Plan, which reflects the collective aspirations and priorities of Queenslanders for the future and will serve as Queensland’s vision for the next 30 years.

The department will expand its pivotal role working with industry and regional

communities to ensure sustainable economic growth can be maximised throughout Queensland, while growing and strengthening a four pillar economy into the future.

Future direction During 2014-15 the department will continue to identify efficiencies, implement refined delivery models and focus on delivery of prioritised programs and activities within existing budgets. The department’s priorities include:

delivering the RegionsQ Framework initiative to build vibrant and prosperous regions including delivering the RegionsQ Action Plan and Showcase

leading the implementation of the Governing for Growth strategy to accelerate economic development

delivering Queensland’s state-wide infrastructure plan, InfrastructureQ, which focuses on productive economic infrastructure including transportation, energy and water sectors, as well as other key infrastructure needed for the improvement of health, education and liveability

progressing proponent selection for world class Integrated Resort Developments in Brisbane and regional Queensland

progressing projects under the Royalties for the Regions program, responding to critical community needs

continuing delivery of Regional and Resource Town Action Plan commitments

maximising economic development opportunities in the Mary Valley

redeveloping Queen’s Wharf Brisbane implementing legislative amendments

to the SDPWOA which support the establishment of a one-stop-shop for Commonwealth environmental approval to significantly streamline the impact assessment process for coordinated projects

developing an outcome-based regulatory framework for the coal seam gas industry

delivering the Queensland Ports Act, strategy and master planning guidelines

introducing the Planning and Development Bill to unlock our planning system, facilitate development and investment and empower local governments to plan for their communities

encouraging councils to use a new ‘fair value schedule of charges’ to become eligible to apply for co-investment through the Priority Development Infrastructure scheme


implementing the Abbot Point Beneficial Reuse Strategy

delivering the Galilee Basin Development Strategy providing streamlined solutions for planning, land acquisition, water, power and rail for the region to help open up the southern and central basin to mining

adopting and implementing a new Gladstone State Development Area (SDA) Development Scheme to improve precinct planning to facilitate a broader range of industrial development

finalising environmental impact assessment for major tourism and transport projects including: Aquis Resort at the Great Barrier Reef and the Bus and Train project in Brisbane’s CBD

improving boating in Mission Beach, with construction of maritime infrastructure at Boat Bay

finalising the handover of management activities for the Southbank and Roma Street Parklands to the Brisbane City Council

supporting the defence industry to build capabilities, connect to new partners, and take advantage of supply chain opportunities

continuing to deliver the government’s response to the Commission of Audit including implementing the Total Asset Management Plan Framework for managing the Queensland Government’s assets

continuing development of Gold Coast 2018 Commonwealth GamesTM Village and sporting venue infrastructure

working with the Gold Coast and Sunshine Coast councils to facilitate development within the Southport and Maroochydore priority development areas (PDAs) following approval of the development schemes

investigating industrial land supply for regional Queensland to identify and assess possible triggers to enable economic development.


projects, focusing on the Galilee and Cooper Basins

continuing to facilitate major resource

Government’s objectives for the communityThe government’s objectives for the community are articulated in Getting Queensland Back on Track, which comprises the five pledges to:

Grow a four pillar economy

Lower the cost of living

Invest in better infrastructure and use better planning

Revitalise frontline services

Restore accountability in government

The department contributes to these objectives by delivering the services outlined in the following sections.

Driving business and economic growth The department is delivering policies and programs that drive business and economic growth consistent with the Queensland Government’s economic development agenda. We will further expand Queensland’s economic growth as benchmarked against the global economy and comparable jurisdictions by:

enabling new growth in the resource sector and property and construction industries through regulatory reform

shifting from business welfare to systemic reform that positions government policy as an enabler of economic growth

generating revenue from divestment of surplus assets

creating growth and jobs across the state through efficient assessment of key projects

continuing to streamline processes, reduce red tape and reduce assessment timeframes for coordinated projects and development in SDAs to fast-track development

assisting Queensland based companies to capture an increased amount of the Commonwealth Government’s annual defence spend

creating growth and jobs in the Mary Valley through the ongoing implementation of the Mary Valley Economic Development Strategy.

Leading infrastructure policy and planning for the state The department is leading infrastructure policy and planning for the state to increase business confidence levels and reduce the cost of doing business in Queensland. Through integrated

planning, coordination and delivery of large-scale infrastructure projects of state and regional significance (including private-sector and resource infrastructure), we contribute to driving


Queensland’s economic development by underpinning private sector confidence to plan and invest.

Of particular focus is:

strengthening regional Queensland in line with The Queensland Plan, supported by record infrastructure spending through Royalties for the Regions

implementing strategies to encourage contestability and attract more entrants into Queensland’s infrastructure market

establishing the Priority Development Infrastructure Co-Investment scheme to fund catalyst infrastructure that will generate or facilitate major economic development.

Reforming Queensland’s planning system

The department is delivering a planning and development assessment system that is reformed, streamlined and simplified, and aims to be recognised by industry as being world class and the best in Australia. These improvements will continue to simplify Queensland’s planning system, which has constrained growth in the property and construction sectors. We are delivering:

confidence, capability and discretion for councils to better plan for their

communities in the context of state priorities

greater certainty of results for developers, including costs and quicker outcomes

whole-of-government facilitation of appropriate development

confidence for the community that the planning system promotes and protects its interests.

Major project assessment, approval, facilitation and delivery

The department is facilitating timely planning and delivery of infrastructure and the major projects that drive economic growth and provide better value for money. We do this by providing tailored advisor, facilitator and service delivery, to support increased economic activity and community services such as affordable housing. We are assisting delivery by:

facilitating and delivering major and coordinated projects that enhance the state’s economic development, including the development of Queen’s

Wharf Brisbane, the delivery of the Gold Coast 2018 Commonwealth GamesTM infrastructure, and proposed tourism and integrated resort developments such as the Aquis Resort in Cairns and the Capricorn Integrated Resort in Central Queensland

streamlining the environmental approvals process with the introduction of a one-stop-shop for impact assessment under a bilateral approvals agreement with the Australian Government


supporting the development of resource industry infrastructure by managing the impact assessments for the Townsville Port Expansion, a multi-user rail to service the Galilee Basin, the Port of Gladstone Gatacombe and Golding Cutting Channel Duplication and the Santos Gladstone LNG Gas Field Development projects

undertaking appropriate land acquisition programs to deliver economic development and infrastructure initiatives

providing effective project delivery assistance to proponents through the judicious and appropriate use of the Coordinator-General’s powers such as undertaking ‘step-in’ action on approvals for the Baralaba Expansion project near Moura and delivering the new Galilee Basin SDA

publishing a set of standardised outcome-focused conditions to provide clarity and certainty to industry and to help reduce approval timeframes by not ‘reinventing the wheel’ for each project assessment

implementing an Efficiency and Quality Improvement Plan (EQIP) which targets new streamlining and process improvement actions across all divisions of the Office of Coordinator-General

developing a new streamlined impact assessment report (IAR) as an alternative to the comprehensive EIS process for less complex projects

introducing the capacity for development schemes in SDAs to regulate more than land use to reduce duplication and streamline approvals processes.

Red tape reduction

During 2013-14 we continued our legislative reform agenda. Changes to the SPA and South East Queensland Water(Distribution and Retail Restructuring) Act 2009 were introduced to support the implementation of a fairer, clearer and simpler infrastructure planning and charging framework.

The SDPWOA was amended to allow for a new bilateral agreement between the Queensland and Australian Governments

to pave the way for a new one-stop-shop for environmental assessment and approval processes.

We also introduced a red tape reduction bill, the State Development, Infrastructure and Planning (Red Tape Reduction) and Other Legislation Amendment Bill 2014, which will repeal five redundant Acts, reduce legislative duplication and improve other portfolio legislation to drive economic growth.

Working across government—a collaborative approach In addition to the government’s objectives for the community, priority initiatives for the department include:

Bilateral agreements – on 13 December 2013 the Queensland and Australian Governments signed an


amended assessment bilateral agreement to broaden the application of the agreement to deliver streamlined benefits where Queensland undertakes comprehensive environmental assessments that meet Australian Government standards. In May 2014, the Queensland and Australian Governments released a draft Approvals Bilateral Agreement on environmental approvals for public comment under the Environment Protection and Biodiversity Conservation Act 1999 (Commonwealth). The draft Agreement covers the environmental impact assessment and approval processes in two pieces of Queensland legislation, namely the SDPWOA, and the Environmental Protection Act 1994.

Royalties for the Regions – a Queensland Government initiative partnering with local councils to invest in new and improved community infrastructure, roads and floodplain security projects which benefit those who live, work and invest in our regions; over $230 million invested in 79 projects during 2013-14.

National Partnership Agreements – the department has lead reporting responsibility for two National Partnership Agreements:

(1) the Regional Infrastructure Fund Stream 2—Economic Infrastructure

– North Queensland ResourcesSupply Chain project –allocating $1.66 million toimprove the efficiency andproductivity of the Mount Isa–Port of Townsville supply

chain by improving coordination management of freight movement along this economically important corridor. Outcomes include completion of a supply chain capacity audit, coordination analysis, and a comprehensive demand-modelling framework and assessment of future water demand for the mining industry in the North West Minerals Province.

– Central Queensland ResourcesSupply Chain project –allocating $1.5 million tofocus attention onimpediments to resource sectorgrowth along CentralQueensland resource supplychains and provide greatercertainty about resource sectorgrowth and infrastructureneeds. Outcomes includecompletion of technicalreviews of infrastructure(roads, rail, water, industrialland, power), and a CentralQueensland Regional GrowthAnalysis identifying keyinfrastructure bottlenecks toresource development andlogistical challenges along theBowen and Galilee Basinssupply chains.

(2) Mission Beach Safe Boating Infrastructure project—with funding of $5.5 million, this project aims to improve the safety of boating conditions in Boat Bay at Mission Beach while also stimulating the economy in the Cassowary Coast region through


the construction of maritime infrastructure to assist tourism investment. The project is on track for delivery in early 2015.

Great Barrier Reef strategic assessment – the department led completion of the draft Strategic Assessment of the Great Barrier Reef Coastal Zone, which describes and assesses the way Queensland’s planning, development and coastal management processes identify and protect matters of national environmental significance in the zone. The strategic assessment responds in part to the UNESCO request for Australia to undertake a comprehensive strategic assessment of the Great Barrier Reef World Heritage Area.

Intergovernmental Agreements

- Fitzgibbon Stormwater Harvesting – a joint state and CommonwealthGovernment-funded $6.3 million stormwater recycling project in Fitzgibbon Chase.

- Fitzgibbon Rainwater Harvesting to Potable Reuse Scheme (PotaRoo) – a Queensland Government initiative jointly funded by the Commonwealth Government and the Japanese Government to capture roof rainwater runoff from dwellings at Fitzgibbon Chase, ultimately for the supply of potable water to the town water network.

Queensland Urban Utilities will take over both projects once operational.


Achieving outcomes for the community The strategic plan is the key instrument that articulates the department’s objectives and priorities for performance. Operational activities are planned in line with the strategic plan, and incorporate risk management strategies. These planning stages form the base of the department’s organisational performance

management process, which then cycles through stages of delivery, reporting and evaluation.

The following outlines the department’s performance and key achievements as they relate to the objectives articulated in the Strategic Plan 2013-17, which was operational for the 2013-14 period.

Champion the interests of business and industry The department achieves this by: This is measured by:

Delivering land and economic development solutions that stimulate economic activity

Facilitating major resource projects

Removing regulatory and other bottlenecks and impediments to investments

Undertaking industry and supply chain development focused on high value markets and specific project opportunities.

Businesses engaging with the department reporting improved business activity as a result of departmental programs

Increased investment in Queensland as a result of departmental programs

Increased uptake across Queensland of targeted industry support programs in key export and non-export based industries to improve growth, competitiveness and employment

Land and economic development projects completed on time and stimulating economic activity

Legislation is reviewed and key systemic blockages are identified and, where appropriate, changed to meet the needs of business and industry.

Outcomes:

Economic strategy and action plan

The department plays a key role as an enabling central agency delivering Queensland's economic prosperity and championing the interests of business and industry. This year the department released Governing for Growth, the whole-of-government 10-year economic strategy and action plan that includes more than 100 priority reforms, actions and programs that focus on growing the

economy. One of its three key objectives is to provide the best business environment in the nation to start or grow a business. The department is leading implementation of this framework in conjunction with relevant departments.


Economic development infrastructure

In 2013-14 the department released the Queensland Government’s blueprint for infrastructure reform, Infrastructure for Economic Development. This outlines large-scale reform to planning, prioritising, financing and funding of physical assets such as road, rail, water and power infrastructure. It is designed to deliver a more disciplined approach to infrastructure decisions to get the best value from assets. Good economic infrastructure enhances productivity, underpins industry expansion and creates the conditions for major jobs growth. This reform to economic infrastructure improves business efficiency through increased connectivity and economies of scale.

This year the department has also progressed the 10-year Bruce Highway upgrade strategy and released the Economic Directions Statement for

Queensland Airports and the draft Queensland Ports Strategy.

Business activity

During the year, 93 per cent of businesses surveyed reported improved business activity as a result of engaging with intensive business improvement services programs (see figure 1). In addition, 95 per cent of companies assisted through other regionally targeted business improvement services reported high levels of satisfaction with these services.

Since July 2013 more than 630 people from 554 businesses have attended our Tendering for Government Business workshops. These workshops build capability and supplier education to help firms win contracts and tenders. Other positive outcomes for business activity include firms reporting benefits such as new markets accessed and additional business won.

Figure 1 Businesses reporting improved activity as a result of departmental programs

*Measure amended in later years. Previously worded as ‘Proportion of assisted firms reporting improved performance following the department’s funded innovation and capacity development activities.’

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Industry support and investment

In 2013-14 the department generated over $1 billion worth of investment in Queensland through industry facilitation, land sales and the Royalties for the Regions program.

More than 5 000 clients accessed industry support services such as business-matching services, business improvement

clinics and project opportunity and information sessions (see figure 2). In addition, over 4 000 suppliers attended four 2018 Commonwealth Games supplier opportunity sessions in June 2014. The sessions were delivered jointly by the department, Industry Capability Network and 2018 Commonwealth Games partners.

Figure 2 Number of clients accessing industry support services

Defence Industries Queensland continued to develop the industry in Queensland by delivering Industry Leaders Group meetings across the four defence sector focus areas of air, land, sea and innovation/ICT; rolling out capability development seminars in collaboration with the Industry Capability Network; expanding industry promotion and developing strategic international and national linkages; releasing the Queensland Defence Industries Capability Directory; and facilitating Precision Agriculture Trials using unmanned aircraft technology.

In October 2013, the department completed the Economic Directions Statement for Queensland Airports 2013-2023. As airports play a vital role across many industries, the department has identified strategic priorities and actions to assist airports to build on their areas of competitive advantage and attract new investment.

February 2014 saw the opening of Dreamworld Corroboree, a $3.5 million investment and Australia’s first Indigenous themed attraction within a major theme park.

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Dreamworld Corroboree is the result of three years of collaboration with the department that included assistance with tourism trade missions and securing Commonwealth Government funding.

Legislation reform

The department has progressed legislation and policy reforms to reduce cost and time burdens on the resources industry, and facilitated new resource development through the Resources Cabinet Committee. This has resulted in improved industry confidence as shown in the

Fraser Institute Annual Survey of Mining Companies 2013, with Queensland registering at a five-year high of 24th of 112 jurisdictions.

Legislation was passed to address infrastructure charging issues. The Sustainable Planning (Infrastructure Charges) and Other Legislation Amendment Act 2014 encourages economic development and provides new funding avenues for local government. It also helps Queensland progress the draft Approvals Bilateral Agreement with the Australian Government.

Fast-track delivery of major resource and industrial development projects

The department achieves this by: This is measured by:

Delivering necessary Commonwealth Games village and infrastructure with our development partners

Ensuring land is available for economic development, infrastructure and major public infrastructure projects

Facilitating and delivering coordinated and complex projects

Identifying surplus government land and facilitating disposal or development

Preparing infrastructure coordination plans

Supporting key resource sector companies through the use of dedicated case managers

Supporting the Resources Cabinet Committee to stimulate investment and support sustainable development in the resource sector.

A reduction in the time taken to assess coordinated project applications and complete Environmental Impact Statement (EIS) assessments and Material Change of Use applications

Effective management of coordinated projects and the EIS process

Infrastructure coordination plans (for priority areas) are delivered as scheduled

Land and economic development projects are completed on time

SDA development schemes are completed on time and as needed.

Outcomes:

Faster decision times

In 2013-14, the Coordinator-General made 152 decisions and reduced the average assessment timeframe for coordinated projects by 56 per cent (see figure 3).

The Coordinator-General also reduced assessment timeframes for decision-making in SDAs by 42 per cent.


In addition, the Minister for State Development declared ten prescribed projects, enabling the Coordinator-

General to intervene in the approvals process to ensure timely project delivery.

Figure 3 Average percentage reduction in assessment timeframes for coordinated projects

Effective management

In 2013-14, the Coordinator-General approved six coordinated projects: Galilee Coal, Shell Australia LNG (Arrow LNG Plant), Shute Harbour Marina, Gold Coast International Marine Precinct, the Gold Coast Quarry, and Carmichael Coal Mine and Rail. Combined, these will potentially attract investment of $38.7 billion with more than 12 000 peak construction jobs and more than 9 000 operational jobs.

A new, risk-based generic terms of reference (ToR) for the EIS has been implemented that is 75 per cent shorter, thereby offering significant time and cost savings. In addition, a risk-based social impact assessment guideline has been implemented with performance-based outcomes to encourage innovative solutions to manage the social impacts of projects.

Under the new Infrastructure Australia (IA) submission process, the department coordinated the first of three Queensland Government submissions for 2014. The February IA submission presented current and emerging infrastructure priorities for the state.

Project delivery

In 2013-14 the percentage of projects managed, facilitated or delivered that met committed timeframes and approved budgets was 95 per cent (see figure 4). In addition, 82 per cent of stakeholders were either satisfied (53 per cent) or very satisfied (29 per cent) with the department’s services for the management, delivery and facilitation of projects.


Figure 4 Projects that meet timeframes and budgets

Diversify and strengthen regional and state economies

Building stronger regions based on competitive advantages

Delivering land supply acceleration commitments in resource towns

Driving the implementation of Governing for Growth, the government's 10-year economic growth strategy

Increasing private sector investment by facilitating business and industry locating and growing in Queensland

Leading an integrated whole-of-government approach to prioritising economic infrastructure development

An increased number of firms accessing major supply chain opportunities

Issues in resource towns being addressed

New business and industry opportunities secured through market analysis, facilitation and support

Regional plans are based on economic and infrastructure strategies

The Bruce Highway Crisis Group is supported

The level of uptake of Royalties for the Regions funding.

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This is measured by: The department achieves this by:

Supporting capability building and supplier education to enable local companies to tender successfully to access global supply chains

Supporting development of a Bruce Highway Crisis Management Plan.

The department has continued to support delivery of the Gold Coast 2018 Commonwealth GamesTM through planning and development for the Athletes Village, progressing delivery of sporting venue infrastructure, including an international swimming and diving competition venue. The master plan for the Village was launched on 24 March 2014.

This year the department conducted the Property Asset Utilisation Review identifying surplus government land assets and planning for divestment, ensuring the sustainable management of land-based assets. The department has continued divestment of properties in the Mary Valley and over 250 properties are now sold or under development leases.

Outcomes:

Regional plans

The Regional Planning Interests Act 2014 (RPIA) and associated regulation commenced on 13 June 2014 and seeks to manage the impact and support coexistence of resource activities and other regulated activities in areas of regional interest. Together the RPIA and Regulation seek to strike an appropriate balance between protecting priority land uses and delivering a diverse and prosperous economic future for our regions. In addition, the Act provides the framework to implement the policies of the new generation statutory regional plans. The department finalised the Darling Downs and Central Queensland Regional Plans, conducted public consultation on the Cape York Regional Plan and commenced the review of the South East Queensland Regional Plan.

The Coordinator-General has declared the Galilee Basin SDA to support the development of the Galilee Basin. Two multi-use corridors will provide an efficient way to transport coal from at least six potential mines through to the Port of Abbot Point over the long term. The six proposed mining projects within the Galilee Basin that have been subject to an impact assessment process managed by the Coordinator-General have the potential to attract investment of over $28 billion and provide more than 15 000

jobs during construction and more than 13 000 operational jobs. The department has also implemented regional infrastructure frameworks and supply chain projects for the Galilee and Bowen Basins and the North West Mineral Province.

Royalties for the Regions

Regional economies continued to be strengthened by investment in infrastructure projects in Queensland’s resource communities via the Royalties for the Region program. This year saw the launch of the second and third funding rounds.

In Round 2, of 65 eligible councils 48 applied for the program, with 46 projects successful in gaining funding worth a total of $104 million (see figure 5). Round 2 leveraged $145 million in co-contributions, including $58 million from local government, $51 million from industry and the remainder from state and federal government agencies and the not-for-profit sector.

In Round 3, the number of councils applying for funding increased to 50 out of 68 eligible councils, with 27 projects successfully gaining funding. These projects gained funding of $55 million and will be rolled out in 2014-15.


In addition, $94 million was committed to fund election commitment roads projects.

Figure 5 Royalties for the Regions

*Round 4 projects to be determined in 2014-15

Resource towns

This year the department continued to implement the Regional and Resource Towns Action Plan. This plan has $10 million worth of funding to address issues such as housing availability and affordability; balance competing industrial, commercial and residential land use; and coordinate infrastructure projects in resource impacted townships.

March 2014 marked a year since the plan was released and saw 40 per cent of the 136 actions successfully completed and an additional 53 per cent of activities well underway. The remaining actions are being addressed through other mechanisms.

New business and industry opportunities

Many new business and industry opportunities have been secured through market analysis, business matching, facilitation and support. This year, 82 Queensland firms won contracts with major projects worth a total of $367 million (see figure 6).

The department has strengthened new project facilitation and case managed major resource projects to minimise potential delays and costs.

This year also saw the continuation of the integrated resort development (IRD) process with four consortia to submit detailed proposals for Queen’s Wharf Brisbane, and two companies continuing with IRDs in regional Queensland.

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Figure 6 New business opportunities

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Case study – Northern Oil Refinery

In March 2014, the first recycled waste lubricant oil refinery opened in Queensland, in the Gladstone State Development Area.

The companies involved, Southern Oil Refining and JJ Richards, had formed a joint venture and originally investigated the feasibility of building a new refinery in either Queensland or Western Australia.

The department enabled this initiative by preparing a tailored business case, facilitating visits to three regional centres and introductions to regional agencies, development approvals, resolving land purchase issues and helping to reduce trunk infrastructure costs.

The refinery is worth $55 million and employs approximately 30 people. It can process up to 100 million litres per year of used lubricant oil, recycling it back to ‘base oil’ which can be reformed into lubricant products to be used again and again. This decreases Queensland’s reliance on oil imports and has lower environmental impacts than using crude based oils.


Assist property and construction industries to grow and flourish through streamlined planning processes


Delivering relevant, timely and clear development schemes

Establishing and implementing the State Assessment and Referral Agency

Implementing a new approach to infrastructure charges

Streamlining planning, assessment and approval processes

Introducing the State Planning Policy.

Industry is satisfied with simplified planning system

New infrastructure charges approach is implemented and accepted by key stakeholders

Priority development area development schemes are delivered as scheduled

Reduced timeframes for state assessment of development applications.

Outcomes:

New local government infrastructure charges approach

Amendments to the Sustainable Planning Act 2009 and the South East Queensland Water (Distribution and Retail Restructuring) Act 2009 which were passed on 5 June, establish a new local infrastructure framework.

These amendments are the result of an extensive 12 month collaborative stakeholder engagement process and will:

simplify, streamline and clarify the operations of the long-term infrastructure framework

provide certainty and consistency across elements such as conditioning, offsets and refunds

specify credits for existing use rights

improve the dispute resolution and infrastructure agreement processes

align the water distributor-retailer infrastructure charging and planning arrangements with the local government framework.

Priority development areas development schemes

Priority Development Areas (PDAs) are parcels of land identified for specific accelerated development. Development of PDAs is streamlined by removing them from the planning and development process in the SPA and shortening timeframes for development assessment processes.

This year two new PDAs were declared, one each on the Gold and Sunshine Coasts. In Southport, the PDA will support economic development through knowledge-based employment, regional government administration, medical, retail and commercial uses. Public consultation on the proposed development scheme was conducted in mid-2014.

On the Sunshine Coast, a PDA at Maroochydore will support economic development by building infrastructure and creating a central business district. Public consultation on the proposed development scheme closed in March.


Following the community consultation, feedback and submissions in relation to both PDAs were reviewed and amendments to the draft schemes made before the final development schemes were submitted for approval.

Reduced timeframes for development application assessment

This year the department has continued reforming the state’s planning and development assessment systems through operationalising the State Assessment and Referral Agency (SARA) and the State Planning Policy (SPP); and finalising the review of the local government infrastructure charges framework.

SARA has seen the time taken for State Assessment manager decisions improved

by 18.5 per cent, while the time taken for referral agency responses has improved by 8.6 per cent.

The SPP began on 2 December 2013, replacing multiple planning policies and clarifying matters of state interest in land use planning and development. The SPP provides local governments with better tools to plan for their communities and streamlines and clarifies assessment and approval processes.

Following consultation in May 2014, the SPP underwent its first amendment to align with current government priorities and continues to be supported by an interactive mapping system and supporting guidelines to assist users’ implementation of the policy.

Case study: SARA fast tracking solutions for drought affected properties

Dry conditions are affecting much of Queensland’s grazing regions, and the SARA team has seen an increase in urgent requests for water bore permits.

Applications for water bores can take up to 20 working days to process, and can be impacted by a number of different regulations from vegetation and water management to native title.

SARA’s pre-lodgement processes have been able to fast track urgent applications with some applications approved in as little as two working days. Having applications case managed by one agency on behalf of all Queensland Government departments has streamlined approval processes and ensures that they are responsive to the needs of the applicant.


Industry satisfaction with simplified planning system

This year the department has held monthly planning forums with approximately 40 stakeholders across peak planning, legal and development industry bodies, and local government. The annual Planning Forum is held each March.

This year 76 per cent of stakeholders were satisfied with initiatives delivered in the last year that aimed to simplify the planning system (see figure 7). This satisfaction is expected to grow once the

changes to the planning system start to produce benefits. Coupled with current satisfaction regarding the simplified planning system, Queensland continues to outperform all other states in an industry confidence survey conducted by the Property Council of Australia, with net positive ratings for five consecutive quarters to 30 June 2014. This survey showed the confidence in the reform programs being undertaken and reflects industry's high expectations for the range of reforms due for completion by the end of 2014.

Figure 7 Stakeholder satisfaction with simplified planning system

*forecast

Re-empower local governments and their communities to plan for their futures


Assisting growth in key industry sectors through regional service delivery partnerships with local governments and stakeholders

Working collaboratively with local governments to optimise sustainable growth

Local government is satisfied with the clarity and scope of local and state government planning roles and responsibilities

Local planning is devolved to local government

Regional statutory plans are completed on time.

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Working with local governments to identify and declare new PDAs and establish Local Representative Committees as appropriate.

Outcomes:

Local planning is devolved to local government

At the heart of delivering a renewed and contemporary planning system is replacing the current Sustainable Planning Act 2009. In consultation with our key stakeholders, significant progress has been made on drafting the Planning and Development Bill, which focuses on stripping away unnecessary state intervention and unwarranted procedural details in order to give local governments the autonomy and flexibility to plan for their communities and create a stable base for industry. This complements other key elements of the planning framework such as the State Planning Policy which provides the tools to empower and support local governments to make the right planning decisions for their community and the new role of regional plans. Rather than set rules for managing growth, the regional plans completed for Central Queensland and Darling Downs provide strategic direction to facilitate development and enable discretionary decision-making.

Local government satisfaction with planning roles and responsibilities

Over the past year, the department has engaged widely and regularly across industry, peak bodies, and local government to deliver its planning reform agenda. Following the second annual Planning Forum held in March 2014, almost 60 per cent of participants surveyed, including local government representatives, were satisfied that the reforms implemented since the previous forum had benefited their day-to-day operations. Local governments have welcomed the greater certainty and clarity around plan making and matters of state interest, as well as benefited from improved SARA response times. A key focus for the department will be to continue to support local governments throughout the entire planning reform process to ensure a smooth transition to the new arrangements.

Improve service delivery The department achieves this by: This is measured by:

Continuously reviewing and focusing departmental activities on government priorities

Delivering integrated and valued departmental and other government services across regional Queensland

Local government, other departments, industry and business are satisfied with the department’s services including regional service delivery

Our organisational structure and resourcing is flexibly aligned with delivery of government priorities



Ensuring our service delivery models are efficient and effective

Services are delivered within approved budgets

The department meets sector-wide workforce performance measures

Outcomes:

Stakeholder satisfaction

In May 2014 the department surveyed stakeholder perceptions of service delivery across five areas: coordinator-general, state development, major projects, economic development, and planning and property. Nearly 70 per cent

of respondents were satisfied or very satisfied with service delivery received (see figure 8). The survey results show there is an opportunity to further improve response times. This data forms a baseline against which to measure future levels of stakeholder satisfaction.

Figure 8 Stakeholder satisfaction

Renewal program

The department continuously reviews and focuses departmental activities on government priorities. This year we continued to implement the Queensland Government’s renewal program, underpinned by the public sector values of customers first, ideas into action, unleash potential, be courageous, and empower people.

We have completed an assessment of the current state of the services we deliver and how we deliver them, and created a

blueprint for service delivery, which will be operationalised in the coming year.

The department has also been leading the implementation of seven renewal recommendations that came out of the Commission of Audit. The recommendations are on track to be delivered as scheduled with timeframes ranging from the latter half of 2014 to 2017.

Very satisfied or satisfied 70% Neutral

19%

Dissatisfied or very dissatisfied 11%


Innovation is a key driver of renewal—we aim to find new approaches to key challenges and strengthen and embed an innovation culture throughout our department.

Enabling improved service delivery

The department is using technology to improve service delivery. We have begun a rolling technology refresh to upgrade desktop computers to mobile devices such as tablets.

This will result in improved client service as staff will have corporate resources available on-site with the client. Other technology initiatives to enable more efficient and cost effective service delivery include piloting a WiFi environment, Voice over Internet Protocol (VoIP) telephone system, upgrading to the Windows 8.1 operating system and migration to cloud based email.


Performance against service standards The Service Delivery Statement 2014-15 forms part of the budget documents and provides a clear overview of departmental achievements during the 2013-14 financial year and expected performance during 2014-15.

As the Budget is delivered prior to the end of the financial year, estimated actual

performance is provided in the Service Delivery Statement 2014-15. The following section provides complete non-financial reporting of the actual performance achieved for the full 2013-14 financial year (including for measures that are discontinued in 2014-15).

Performance data The department’s performance information is presented in the following tables, which are consistent with the 2013-14 Service Delivery Statement (SDS). This includes non-financial performance in service areas of the department, measured against service standards.

In 2013-14 the department reviewed both service areas and service standards. The service areas changed from being structurally aligned to being actual services delivered. The service standards were revised to include measures of effectiveness and efficiency. Measures that do not demonstrate effectiveness or

efficiency, or are no longer relevant measures of services are reported in the discontinued measures section.

Two new measures resulting from the review are not included in the tables below, as data collection will not commence until 1 July 2014. These measures are:

Private sector capital investment leveraged per dollar spent on industry facilitation

Value of infrastructure investment enabled per dollar invested in the management of the Royalties for the Regions program.


Driving business and economic growth

Driving business and economic growth is a new service area for 2014-15.


Percentage of land transactions being delivered, which meet committed time frames and approved revenue targets

2013-14 Target/

estimate

2013-14 Estimated

actual

2013-14 Actual

75% 75% 95%

This measure commenced in 2013–14. This service standard was reported in the 2013–14 SDS under the service area ‘Major Projects’. The variance of 20per cent between the 2013–14 target/estimated actual and the 2013–14actual is due to the successful rollout of multiple divestment programs and targeted release of government owned properties in the Mary Valley on the open market over the two reporting periods.

Value of private sector capital investment leveraged through industry facilitation

2013-14 Target/

estimate

2013-14 Estimated

actual

2013-14 Actual

$230 million

$428 million

$494.6 million

This service standard was reported in the 2013–14 SDS under the service area ‘State Development’. It provides an indication of the effectiveness of project facilitation in assisting Queensland investment. The increase of $264.6 million from the 2013–14 target/estimate to the actual is due primarily to project facilitation expenditure and a one-off attraction project with a high capital expenditure. Projects with such high capital expenditure are rare and unlikely to be repeated in future years. The estimated actual includes $4.567 million relating to the Mary Valley.

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Value of private sector investment generated through land sales

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New measure

$426 million

$619 million

The variation between the 2013–14 estimated actual and the 2013–14 actual is due to the earlier than expected finalisation of a major industrial land sale in the Burdekin.

Value of private sector investment generated through land sales per dollar spent on sales management

2013-14 Target/

estimate

2013-14 Estimated

actual

2013-14 Actual

New measure

$7.43 $10.54

The variation between the 2013–14 estimated actual and the 2013–14 actual is due to the earlier than expected land sale noted above.

Leading infrastructure policy and planning for the State

Leading infrastructure policy and planning for the State is a new service area for 2014-15.


Value of infrastructure investment enabled through the Royalties for the Regions program

2013-14 Target/

estimate

2013-14 Estimated

actual

2013-14 Actual

$200 million

$217 million

$217 million

This service standard was reported in the 2013–14 SDS under the service area ‘State Development’. The variance of $16.98 million between the 2013–14 target/estimate and the actual is due to additional Royalties for the Regions funds being committed from the future round, as well as increased contributions from industry and councils.

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Reforming Queensland’s planning system is a new service area for 2014-15.


Percentage of stakeholders indicating they are satisfied with Queensland’s simplified planning system

2013-14 Target/

estimate

2013-14 Estimated

actual

2013-14 Actual

80% 76% 76%

This service standard was reported in the 2013–14 SDS under the service area ‘Planning’. The slight difference between the target/estimate and actual figure is due to the nature of the ongoing reform program.

Percentage of total decisions or referral responses where the state is the Assessment Manager or Concurrence Agency are appealed

2013-14 Target/

estimate

2013-14 Estimated

actual

2013-14 Actual This is a new measure which will commence in 2014–15.

This measure is designed to drive better and more-timely decisions. Actual data was available for 2013–14 and is reported here.

New measure

New measure

0%

Percentage of total referral responses or decision notices issued that do not require an additional information request

2013-14 Target/

estimate

2013-14 Estimated

actual

2013-14 Actual

New measure

New measure

91.5%

This is a new measure which will commence in 2014–15. This measure is designed to drive better and more-timely decisions. Actual data was available for 2013–14 and is the estimate of the average of the percentage of stakeholder satisfaction and the percentage of decisions or referral responses appealed.

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Major project assessment, approval, facilitation and delivery is a new service area for 2014-15.


The number of statutory decisions made by the Coordinator-General

2013-14 Target/

estimate

2013-14 Estimated

actual

2013-14 Actual

90 125 152

This service standard was reported in the 2013–14 SDS under the service area ‘Coordinator-General’. This measure is a continuing measure that demonstrates the effectiveness of the Coordinator-General in assessing coordinated projects and providing project delivery services. The variance between the 2013-14 target/estimate and the 2013–14 actual is attributed to a number of streamlining initiatives introduced by the Coordinator-General.

Average percentage reduction in the assessment timeframes for coordinated projects

2013-14 Target/

estimate

2013-14 Estimated

actual

2013-14 Actual

50% 53% 56%

This service standard was reported in the 2013–14 SDS under the service area ‘Coordinator-General’. This measure is a continuing measure that demonstrates the efficiency of the Coordinator-General in reducing assessment timeframes for declared coordinated projects. The variance between the 2013–14 target/estimate and the 2013–14 actual is attributed to a number of streamlining and efficiency initiatives introduced by the Coordinator-General.

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Percentage of projects being managed, delivered or facilitated, which meet committed timeframes and approved budgets

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actual

2013-14 Actual

75% 95% 95%

This service standard was reported in the 2013–14 SDS under the service area ‘Major Projects’. The 2013–14 target/estimate was set as 75 per cent as a conservative estimate due to some elements of timeframe achievement being outside of the department’s control. Due to a focus on realisation of efficiencies, a 20 per cent variance to the actual of 95 per cent was achieved.

Percentage of industry proponents indicating they are satisfied with services provided for the management, delivery or facilitation of projects

2013-14 Target/

estimate

2013-14 Estimated

actual

2013-14 Actual

75% 82% 82%

This service standard was reported in the 2013–14 SDS under the service area ‘Major Projects’. A survey response rate of 42.5 per cent was achieved from a pool of 40 stakeholders, with 29.4 per cent of survey respondents indicating they were very satisfied and 52.9 per cent indicating they were satisfied.


Percentage of projects managed, facilitated or delivered that meet committed timeframes and approved budgets

2013-14 Target/

estimate

2013-14 Estimated

actual

2013-14 Actual

75% 90% 92%

The variation between the 2013–14 target/estimate and the 2013–14 actual is due to a greater number of sales being executed on time than originally forecast.

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Discontinued measures Service standards included in the 2013-14 Service Delivery Statements that have been discontinued or replaced in the 2014-15 Service Delivery Statement are reported in the following tables. For those measures which are being discontinued

from the Service Delivery Statement because they do not demonstrate the effectiveness or efficiency of services, the notes refer to where these measures will continue to be reported.


Driving business and economic growth

Percentage of businesses engaged in the department’s targeted industry support programs reporting positive outcomes

2013-14 Target/

estimate

2013-14 Estimated

actual

2013-14 Actual This service standard was reported in the 2013–14 SDS

under the service area ‘State Development’. The increase from the target/estimate to the 2013-14 actual is due to targeted engagement with industry.

70% 80% 93%

Gross jobs generated or safeguarded as a result of project facilitation

2013-14 Target/

estimate

2013-14 Estimated

actual

2013-14 Actual

This service standard was reported in the 2013–14 SDS under the service area ‘State Development’. This measure is being discontinued as it is an activity measure and therefore does not demonstrate effectiveness or efficiency. This measure provides an indication of the effect of project facilitation in assisting Queensland investment. The increase from the target/estimate to the 2013–14 actual is primarily due to a more targeted approach to addressing the local content requirements of major projects by ICN Qld and a one-off attraction project with a high capital expenditure. Projects with such high capital expenditure are rare and unlikely to be repeated in future years.

2 380 4 079 4 481


Percentage improvement in time taken for referral agency responses

2013-14 Target/

estimate

2013-14 Estimated

actual

2013-14 Actual

This service standard was reported in the 2013–14 SDS under the service area ‘Planning’. This measure is being discontinued and replaced with an alternate State Assessment and Referral Agency measure designed to drive cultural change.

10% 8.6% 8.6%

Percentage improvement in time taken for State Assessment manager decisions issued

2013-14 Target/

estimate

2013-14 Estimated

actual

2013-14 Actual

This service standard was reported in the 2013–14 SDS under the service area ‘Planning’. This measure is being discontinued and replaced with an alternate State


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Percentage improvement in time taken for State Assessment manager decisions issued

10% 18.5% 18.5% Assessment and Referral Agency measure designed to drive cultural change.


Percentage of stakeholders indicating they are satisfied with the quality of facilitation services for industry development and Invest Queensland services

2013-14 Target/

estimate

2013-14 Estimated

actual

2013-14 Actual

This service standard was reported in the 2013–14 SDS under the service area ‘State Development’. This measure is now captured in the new measure ‘Percentage of industry proponents indicating they are satisfied with services provided for the management, delivery or facilitation of projects’. Invest Queensland services are now delivered through Queensland Treasury and Trade. The 2013-14 actual is the averaged result of two feedback mechanisms. Feedback is received from stakeholders after interaction with Invest Queensland services, which achieved a 2013-14estimated actual satisfaction rate of 75 per cent, as well as via an industry development stakeholder survey, which reported a satisfaction rate of 80 per cent.

75% 87.5% 87.5%


Percentage increase in private sector investment generated through successful land sales

2013-14 Target/

estimate

2013-14 Estimated

actual

2013-14 Actual

This measure is now captured as a value of private sector investment under the driving business and economic growth service area. These service standards were reported in the 2013–14 SDS under the Economic Development Queensland commercialised business unit. The 2013–14 actuals are higher than the targets and estimated actuals due to more land sales being generated than originally forecast, which has also resulted in a greater than expected increase in the estimated number of jobs generated.

2% 178% 158%

Estimated number of jobs generated

2013-14 Target/

estimate

2013-14 Estimated

actual

2013-14 Actual

This measure is being discontinued as it is an activity measure and therefore does not demonstrate effectiveness or efficiency. These service standards were reported in the 2013–14 SDS under the Economic Development Queensland commercialised business unit. The 2013–14 actuals are higher than the targets and estimated actuals due to more land sales being generated than originally forecast, which has also resulted in a greater than expected increase in the estimated number of jobs generated.

368 1 045 1 179


Summary of financial performance This section provides an overview of the financial statements of the department for the 2013-14 financial year, which are provided in detail at the ‘financial statements’ section of this report.

Understanding the financial statements

One impact on the department’s operations in 2013-14 is the inclusion of Economic Development Queensland (EDQ) transactions for the full year compared to

five months of the former Urban Land Development Authority (ULDA) transactions in 2012-13. The ULDA and the Property Services Group were merged to form EDQ effective 1 February 2013.

The following comparison of the 2013-14 results with the 2012-13 results was considered and accepted by the department’s Audit and Risk Management Committee at its August 2014 meeting.

Table 1 Analysis - Operating result

2014 $’000

2013 $’000

Variance $’000

Total income 426,994 327,059 99,934 Total expenses 395,982 336,733 59,249 Operating result before tax 31,012 (9,674) 40,686 Income tax equivalent benefit expense 10,711 1,580 9,131 Operating result after tax 20,301 (11,254) 31,555 Other comprehensive income Asset revaluation surplus increase / (decrease) (2,914) 7,975 (10,889) Total comprehensive Income 17,387 (3,279) (20,666)

Income Figure 9 Income by category for the year ended 30 June 2014

Appropriation revenue for

services 42%

Land Sales 34%

<1%

User charges and fees 19%

Grants and other contributions

Interest 1% Other revenue

4%


The department’s main categories of income are Appropriation revenue for services and Land sales. Overall total income increased by $99.9 million to $427 million from 2012-13 as follows:

Land sales increased by $57.8 million in 2013-14 to $142.1 million largely due to a full year of EDQ operations compared to only five months of former ULDA operations during2012-13

$32.3 million increase in User charges in 2013-14 to $80.7 million mainly attributed to additional cost recovery for the construction of Commonwealth Games venues

Other revenue in 2013-14 of $15.3 million largely related to proceeds from the Department of Transport Main Roads for a dedicated road of $13.9 million.

Expenses Figure 10 Expenses by category for the year ended 30 June 2014

The department’s significant categories of expenses are Employee expenses, Supplies and services, and Cost of land sales. Overall total expenses are $395.9 million and have increased by $59.2 million from 2012-13 due to:

$88.7 million in Costs of land sales, an increase of $30.9 million due to the impact of a full year of operations of EDQ in 2013-14 compared to only five months in 2012-13

$114.4 million incurred for Supplies and services in 2013-14 being an increase of $40.8 million from

2012-13 largely for contractor costs for Commonwealth Games venues. Also, EDQ increased contractors, property, building and marketing costs due to a full year of operation in 2013-14

Other expenses in 2013-14 decreased by $11.2 million from 2012-13 mainly due to the one-off transfer of airport upgrade to the Whitsunday Regional Council in that year.

Total comprehensive income For 2013-14, the total comprehensive result is a surplus of $17.4 million,

Employee expenses

25%

Supplies and services

29% Grants and subsidies

6%

Depreciation and

amortisation 3%

Impairment losses

2%

Cost of land sales 22%

Revaluation decrement

5%

Finance/ borrowing costs

3% Other expenses

5%


however this includes an Asset revaluation reserve deficit of $2.9 million.Therefore, the operating result fromcontinuing operations is a $20.3 million

surplus mostly relating to EDQ operations offset by a deficit in the department related to asset decrements and impairments.

Table 2 Statement of financial position – Assets and Liabilities

2013-14 $’000

2012-13 $’000

Variance $’000

Total Current Assets 704,399 609,207 95,192 Total Non-Current Assets 776,677 914,496 (137,819) Total Assets 1,481,076 1,523,703 (42,627) Total Current Liabilities 212,703 150,028 62,675 Total Non-Current Liabilities 197,643 239,725 (42,082) Total Liabilities 410,346 389,753 20,593 Total Equity 1,070,730 1,133,950 (63,220)

Total assets at 30 June 2014 are $1,481 million, representing a decrease of $42.6 million from 2012-13 due mainly to the reduction in Property, plant and equipment via the disposals of Mary Valley properties and valuation decrements. Receivables also declined due to the settlement of debts owing as at 30 June 2013 offset by increases in Cash and cash equivalents.

Total liabilities at 30 June 2014 are $410.3 million, representing an increase of $20.6 million from 2012-13. This is mainly due to an increase in Income tax payable due to EDQ’s surplus, Other liabilities due to additional deposits held for the sale of land, and Provisions for tax equivalents payable to Queensland Treasury and Trade.

Comparison of financial result with budget Table 3 Statement of Comprehensive Income for the year ended 30 June 2014

Controlled items Notes 2013-14

Actual $’000

2012-13 Budget

$’000

Variance $’000

Income

Appropriation revenue for services 1 175,845 289,140 (113,295)

User charges 222,820

220,730 2,090

Grants and other contributions 1,810

377 1,433

Other revenues 2 21,159 9,091 12,068 Gains 3 5,360 5,360 Total income 426,994 519,338 (92,345)

Expenses Employee expenses 98,723 99,368 (964)

Supplies and services 4 203,049

234,853 (31,804)

Grants and subsidies 5 22,837

94,432 (71,595)

Depreciation and amortisation 10,969 10,592 377

Impairment Losses 6 8,251 - 8,251 Revaluation decrements 7 20,446 7,515 12,931 Finance/borrowing costs 8 11,622 5,934 5,688


Controlled items Notes 2013-14

Actual $’000

2012-13 Budget

$’000

Variance $’000

Other expenses 20,085

19,148 937

Total expenses 395,982

472,161 (76,178)

Operating result from continuing operations 31,012 47,177 (16,166)

Income tax equivalent expense (10,711) (6,983) (3,728)

Operating result from continuing operations after income tax equivalent expense

20,301

40,194 (19,893)

Increase in asset revaluation surplus (2,914)

1,352 (4,267)

Total comprehensive income 17,386 41,546 (24,160)

Notes:

2013-14 actual results have been presented using the same income and expenses categories as the 2013-14 SDS Income Statement. The variances for these items can be explained as follows: 1. Reduced Appropriation revenue for services is due to the transfer of Grants and subsidies to

other departments and the deferral of funding for priority projects reducing Supplies and services expense.

2. The increase in Other revenue relates to the recognition of proceeds from the Department ofTransport and Main Roads for a dedicated road with the value only being determined during 2013-14.

3. Increase in Gains is due to the realisation of Mary Valley property sales above market value,reversal of prior year impairment of Receivables, and reversal of revaluation decrement for buildings. These Gains were not forecast as part of the published budget.

4. The Supplies and services actual variance from budget is largely attributed to the fundingdeferrals to out-years for a number of projects.

5. The Grants and subsidies variance primarily relates to the budgeted Royalties for Regionsprogram being subsequently transferred to other departments during 2013-14. Funding was also deferred for the Queensland Industry Incentive Scheme and fluoridation programs.

6. Impairment Loss is due to land being assessed as flood prone and contaminated during 2013-14.7. The increase in revaluation decrements was a result of comprehensive revaluations undertaken

across department Land that resulted in large decrements for several land holdings that were notforecast as part of the published budget.

8. The increase in Finance/borrowing actual costs is largely attributed to additional interest fordevelopment loans across EDQ subsequent to the 2014 Published Budget.


Governance

Organisation structure

Executive team

Director-General

David Edwards’ professional background is in economics, infrastructure, project management and public policy. Prior to being appointed Director-General of DSDIP in April 2012, David's previous positions included Manager of Strategy and Market Development for GHD, a global engineering and professional services company, and State Director for the Committee for Economic Development of Australia, Australia's oldest independent economic think tank. Prior to that David worked in senior roles in several government agencies including the Department of State Development and the Department of the Premier and Cabinet.

In addition to his role as Director-General, David is chair of Economic Development Queensland, Deputy Chair of the Commonwealth Games Infrastructure Authority, a director of South Bank Corporation and of Trade and Investment Queensland, and a member of Infrastructure Queensland.

Director-General

Deputy Premier

State Development



Regional Services


Organisational Support and

Reform

Coordinator-General


Coordinator-General

The Coordinator-General plans, delivers and coordinates large-scale economic development projects under the SDPWOA.

The Coordinator-General leads the environmental impact assessment process that facilitates coordinated projects and states or recommends the conditions under which subsequent approvals for these projects may be granted. The Coordinator-General may also determine if major project proposals require whole-of-government management.

The Coordinator-General also:

establishes and manages SDA planning and development approvals

acquires land or easements to facilitate development

declares prescribed projects which provides the power to intervene in decisions associated with development applications if required to overcome any unreasonable delays.

The Office of the Coordinator-General is organised into three areas:

Land Acquisition and Delivery

State Development Areas

Coordinated Project Delivery.

State Development

The State Development group consists of the Economic and Regional Development, Industry Development, Supply Chain Development, and Infrastructure Policy and Planning divisions, and the department’s Futures Unit. These areas:

lead economic and industry policy development for the state

facilitate industry and supply chain projects to grow the economy and jobs

assist the development of the coal seam gas/liquefied natural gas and resource industries

lead infrastructure policy and prioritisation

deliver the Royalties for the Regions program to help local government and communities manage the impacts of rapid growth in the resource sector

produce economic strategies to develop and diversify regional economies.

Coordinator-General

Barry Broe’s professional background is in infrastructure, major projects and transport, across all aspects of planning, design, funding, procurement, construction, operations and maintenance. He holds a Bachelor of Civil Engineering and a Master of Engineering and Technology Management. His work history includes executive leadership roles in local and state government where he has been responsible for the planning and delivery of major infrastructure projects.



Planning and Property is organised under four key areas—Planning Services, Regional Planning, Development Assessment and Government Land and Asset Management. Together these areas are focussed on delivering an effective planning system and efficient development processes by:

delivering enhanced economic and social outcomes from government property assets by providing a centralised function for identifying, assessing and managing the state's property-based assets to their fullest potential

reforming the state's planning and development assessment system to one that:

- provides a state-wide, whole-of-government approach to planning and development assessment

- minimises regulation, clearly articulating state interest and enabling discretionary decision-making, which allows local governments to better plan for and support their communities

- provides the development industry with greater certainty regarding assessment times and outcomes

- gives communities confidence that the planning and development assessment system will promote their collective interests and minimise the risk of harmful development.

Deputy Director-General State Development

Jamie Merrick held a number of senior economic development roles in the United Kingdom prior to being appointed Deputy Director-General of State Development. His work has included leading strategy development for the UK’s most research intensive regional economy, innovative approaches to infrastructure prioritisation and delivery of major regeneration projects. Jamie has also worked for the UK Government on industrial policy and the future of business support arrangements, and in the private sector for a high growth technology company.

Deputy Director-General Planning

Greg Chemello has 30 years’ experience in the property and development sectors and has held senior professional, management and leadership roles with both public and private sector property asset owners and private sector advisory/consulting businesses. With qualifications in town planning, environmental science and business management, Greg has managed an extensive range of private and public sector development projects across the sport, leisure, entertainment, residential, retail, commercial and industrial sectors. In addition to delivery of development projects, Greg has extensive business management experience.



The Major Projects Office provides expertise for the management and delivery of the infrastructure and property development projects the department is involved in, on behalf of other agencies, through:

timely facilitation, project management and delivery of high

priority and complex infrastructure and property projects with a state development benefit for Queensland

collaboration with the private sector to deliver government objectives through private sector investment and development.

Regional Services

Regional Services provides an integrated suite of business, industry, regional development and land use planning services in partnership with the Queensland Government departments of:

State Development, Infrastructure and Planning

Tourism, Major Events, Small Business and the Commonwealth Games.


EDQ focuses on complex property issues and fast tracking opportunities for urban, residential and industrial development across Queensland. Its role includes enabling or undertaking land

development activities, facilitating infrastructure, and providing a streamlined planning framework for declared areas. EDQ’s priorities include:

delivering or facilitating projects to support economic development e.g. new central business districts for

Deputy Director-General Major Projects Office

Stuart Pickering has more than 30 years’ experience in capital development, strategic asset management and facilities operational management across state based and national organisations. In addition to asset and capital development projects, Stuart has extensive business management experience at executive and director level for both private and government organisations. With qualifications in architecture and commerce, Stuart has managed an extensive range of projects across retail, commercial, education, residential, health and industrial sectors.

Deputy Director-General Regional Services

Kathy Schaefer has diverse leadership experience, having worked in three states in two tiers of government across local, regional and state settings. Kathy’s professional experience includes leading major cultural and structural reform processes. Kathy holds academic qualifications in business administration and education.


http://www.dtesb.qld.gov.au/

http://www.dtesb.qld.gov.au/

Southport and Maroochydore, Toondah Harbour and Weinam Creek

progressing the delivery of the Gold Coast 2018 Commonwealth GamesTM Village.

Organisational Support and Reform

Organisational Support and Reform provides business and corporate support and services to the department, the Department of Local Government, Community Recovery and Resilience (DLGCRR) and the GasFields Commission (via Service Level Agreements).

It also leads the department’s reform and renewal program to drive organisational

reforms that work towards the goal of being the most responsive and respected public sector in Australia—becoming more effective, delivering value for money and ultimately achieving better outcomes for Queenslanders.

This group consists of the following divisions: Corporate Services, Internal Audit, Strategic Policy, Human Resources, Communication and Media, and Legal Services.

General Manager Economic Development Queensland

Paul Eagles’ experience in the planning and development industry spans 30 years, with a major emphasis on the delivery of residential communities that have provided a diverse mix of housing. His career includes senior positions with national development companies working on large master planned communities in South East Queensland and 15 years in local government, including positions with Cairns City Council, Logan City Council and Albert Shire Council. Paul Eagles has been Acting General Manager since 12 May 2014.

Chris Mills was General Manager of EDQ until May 2014. Chris Mills has a background in tourism, property and infrastructure, and has held senior roles in private and public sector businesses. He has facilitated property and infrastructure transactions across the state and managed a range of development, financial, retail and other operating responsibilities. Chris was admitted to the Institute of Chartered Accountants in Australia in 1992.

Chief Operating Officer

Colin Cassidy has more than 30 years’ experience in local and state government in a range of senior technical, policy and leadership roles. Colin’s professional experience includes leading major structural and cultural reforms, legislation and policy and improved service delivery.


Governance framework The department is committed to operating in an ethical, transparent and accountable manner. The governance framework supports the delivery of high quality, value for money outcomes for Queenslanders (figure 11). It includes the following committees:

Executive Leadership Team

Finance and Asset Management committee

Audit and Risk Management committee

Information Steering committee

Workforce committee

These committees assist the Director-General to meet his corporate governance responsibilities.

Figure 11 Our Governance Framework


Governance committees The governance committee roles and membership are as follows:

Committee Membership and meetings Responsibilities

Executive Leadership Team (ELT)

Director-General (Chair)

Coordinator-General


Deputy Directors-General

Director, Office of the Director-General (Secretariat)

The ELT meets weekly.

The ELT supports the Director-General to comply with his corporate governance responsibilities by:

advising the Director-General (as accountable officer) on strategy, goals and performance

reviewing and managing strategic risks

acting as a forum to discuss and resolve strategic issues

reviewing and considering recommendations made by ELT subcommittees

monitoring the department’s performance and progress against significant projects

providing leadership in corporate governance improvement

considering and acting upon recommendations of the Audit and Risk Management Committee.

Finance and Asset Management Committee (FAMC)

All members of ELT are also members of the FAMC.

The FAMC meets every second month.

The FAMC provides the Director-General with ongoing assurance in all aspects of financial administration, reporting and control.



Audit and Risk Management Committee (ARMC)


General Manager, Economic Development Queensland

Executive Director, Government Land and Asset Management

Executive Director, Development Assessment

Two external members including the Chair

The committee met four times during 2013-14.

The ARMC (as required by the Financial and Performance Management Standard 2009) provides independent assurance and assistance to the Director-General on:

the risk, control and compliance frameworks

external accountability responsibilities as prescribed in the legislation and standards.

Information Steering Committee (ISC)

Deputy Director-General, State Development (Chair)


Deputy Director-General, DLGCRR

Deputy Director-General, Regional Services

Executive Director, Communication Services

Executive Director, Land Acquisition and Delivery, Office of the Coordinator-General

Director, Regional Economic Programs, State Development

The ISC meets quarterly or as otherwise determined by the Chair.

The ISC provides the Director-General with advice and recommendations regarding the strategic direction and use of information and communications technologies (ICT) and provides assurance regarding ongoing ICT asset management and replacement.

The ISC is supported by the Information Management Subcommittee, which provides advice and recommendations on the management of records, information, communications and technology assets as well as investment proposals for the operation of ICT activities.

Department of State Development, Infrastructure and Planning Annual Report 2013-14 - 48-


Workforce Committee

Director, Human Resources

Together Union representative

Departmental management and workforce representatives

The Committee meets on an as required basis.

The Committee includes the Work Health Safety committee and the Consultative committee, the principal consultative body for unions and management. The committees consider:

organisational change and restructuring

workload management

workplace, health and safety

balancing work, life and family

workforce data

organisational matters such as review of, changes to, or introduction of new workforce management policies

consultation with public sector union.


Ethics and integrity The department’s ethics and integrity framework ensures systems, policies, procedures and resources are in place to provide assurance that all activities are conducted in an ethical, accountable and transparent manner. The framework covers important integrity services and functions including complaints management, lobbyist contacts, declarations of interest registration, gift and benefits registration, ethics advice and training, Crime and Misconduct Commission (CMC)1 liaison, public interest disclosure management and fraud and corruption prevention.

The department has embedded the principles and values of the Public Sector Ethics Act 1994 explicitly and implicitly in its strategic planning process and documents, human resource management policies and procedures and in employees’ Performance and Development Agreements. The department engages with employees, the general public and the private sector in an honest, impartial and accountable manner.

Departmental employees uphold the Code of Conduct for the Queensland Public Service and are provided training in the code through induction, online training and specific targeted face-to-face training provided by departmental and external training providers. The department’s online training in ethical decision making has been refreshed and will be rolled out to staff in the coming financial year,

1 Crime and Corruption Commission (CCC) to operate from 1 July 2014

along with more intensive workshop-style ethics and integrity training.

The department supports managers and staff to implement the code throughout their work by providing:

access to the code on the department’s intranet and internet websites

supplementary face-to-face training in the code and ethics and integrity topics for a number of targeted business areas

access to external training on ethics and integrity related matters including ‘Your Ethical Compass’ training from the Queensland Ombudsman’s Office

managers workshops on a range of ethics and integrity related corporate governance topics

policies and procedures with practical guidance

responses to requests for advice on ethics matters by telephone and email

online tools, resources and support networks

management of complaints and allegations of alleged breaches of the code

maintaining close cooperation and liaison with the CMC

monitoring of trends and issues and implementation of improvements as a result of lessons learned from cases and complaints

encouragement to managers to raise ethics and integrity matters for regular discussion, which assists in highlighting employees’ individual responsibilities.


Risk management The department takes an active approach to risk management, emphasising its role in informed business decision-making. The framework used is in line with Australian Standards and Queensland Treasury and Trade guidelines.

Through objective risk identification, assessment, monitoring and treatment, the department aims to appropriately address risk and take action to enhance positive outcomes and limit undesirable outcomes without being unnecessarily risk averse.

Risk management is further integrated into the department’s planning cycle at an operational level, with the use of environmental scanning to ensure risks and opportunities are identified and

subsequent actions appropriately aligned to the department’s objectives.

During 2013-14 the Queensland Audit Office (QAO) undertook an area of emphasis audit to assess the relevance and appropriateness of risk management procedures and assessments.

The QAO audit acknowledged that the department has, over the last two years, embarked on a significant improvement program in relation to strengthening its risk management procedures and practice including its risk management framework, implementation of policies, risk identification, assessment, mitigation and reporting.

No significant weaknesses or deficiencies were identified by the audit.

Accountability

Audit and Risk Management Committee

The ARMC establishes the authority and responsibilities of the committee and was prepared with reference to:

the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2009

Queensland Treasury and Trade Audit Committee Guidelines—Improving Accountability and Performance

better practice guidance issued by the Australian National Audit Office

legislative, regulatory and other requirements—promoting a culture of lawful and ethical behaviour.

In 2013-14 the membership and remuneration (if applicable) of the ARMC was:

Eric Muir – Chair and external member and the remuneration for 2013-14 was $8,008

Joshua Chalmers, Partner, PriceWaterhouseCooper - external member and the remuneration for 2013-14 was $2,640

Colin Cassidy, Chief Operating Officer

Chris Mills, General Manager, Economic Development Queensland (until May 2014)

Stephen Evill, Executive Director, Government Land and Asset Management


Steve Conner, Executive Director, Development Assessment

Key achievements for the ARMC during 2013–14 include:

reviewing and endorsing the department’s financial statements for the year ended 30 June 2013, the Internal Audit Strategic Plan 2014–17, and the Annual Audit Plan 2014–15

endorsing the ARMC Charter and the Internal Audit Charter for 2014–15

reviewing and considering the QAO Strategic Audit Plan and Client Strategy for the department

considering the scheduling, status and findings of QAO financial and assurance audits

endorsing the department’s Risk Management Framework 2013

endorsing the department’s Fraud and Corruption Prevention Plan 2013.

The Committee considers that it has observed the terms of its charter and has had due regard to Queensland Treasury and Trade Audit Committee Guidelines.

Internal Audit

In accordance with section 29 of the Financial and Performance Management Standard 2009 the department has an established independent Internal Audit function.

The Internal Audit function must operate under an internal audit charter which sets the purpose, authority and responsibilities of the department’s internal audit function. The Internal Audit Charter has been prepared with reference to:

the relevant provisions of the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2009

IIA International Professional Practice Framework

the Queensland Treasury and Trade Audit Committee Guidelines— Improving Accountability and Performance

better practice guidance issued by the Australian National Audit Office.

The Charter was endorsed by the ARMC and approved by the Director-General and is consistent with accepted auditing and ethical standards.

Internal Audit provides independent and objective advice to the Director-General and aids him in the discharge of his statutory functions and duties as accountable officer. The scope of Internal Audit coverage is set out in the Internal Audit Strategic Plan 2013–16. This plan follows a risk-based methodology, balancing emerging issues against reviews of core business and transactional processes. Ms Jo Buckley CA B.Com is Head of Internal Audit.

Achievements of Internal Audit during 2013-14 include:

providing advisory services to the department in order to improve risk management, control and governance, and business operations


completing audits and reviews as

agreed with the ARMC, resulting in appropriate management recommendations for improving governance processes and business operations

proactive follow-up with management regarding their timely implementation of internal and external audit recommendations

provision of secretariat services as outlined in the ARMC Charter

adoption of a co-sourced service delivery model for the provision of an effective internal audit function.

External reviews

In addition to the Auditor-General report of the department’s financial statements, the Auditor-General conducted audits during the year where recommendations were specifically addressed to the

department or addressed to all agencies to consider. These audits included:

Auditor-General’s Report 6: 2013-14, Results of audit: Internal control systems was tabled in Parliament 19 November 2013

Auditor-General’s Report 10: 2013-14, Contract Management Renewal and Transition was tabled in Parliament 3 December 2013

Auditor-General’s Report 18: 2013-14, Monitoring and Reporting Performance tabled in Parliament 26 June 2014.

Recommendations addressed to the department were accepted and management plans are in place. Progress in implementing Auditor-General recommendations is monitored and followed-up by Internal Audit and reviewed by the ARMC.

Information management and recordkeeping The department utilises an electronic document records management system (eDRMS) to capture, maintain and protect the accuracy and reliability of its records for as long as they are required to support business, regulatory, social and cultural needs.

The department is committed to meeting its responsibilities under the Public Records Act 2002. The record keeping policy protects the department’s information assets and ensures that departmental records are the basis for organisational accountability, current and future policy formation and management decision-making. Records kept as archives also form part of the department’s

information assets and the state’s cultural heritage.

Our records management approach includes:

implementing and maintaining a records management framework that includes clear and concise policy, procedures and work instructions

managing programs and recordkeeping systems that comply with legislation and government directives including collaboration and sharing of tools

implementing Paper Lite approaches to records management including digitisation and electronic processing of information over the next two years


leading cultural reform across the department by creating supportive recordkeeping awareness resources and system training to proactively provide staff with assistance.

The department uses TRIM as an eDRMS that provides secure, effective and efficient management of correspondence, documents and records. The department also uses the whole-of-government SAP system for financial management and the Aurion system for human resource management.


Our workplace, our people

Workforce profile

As at 30 June 2014, our department had 908 fulltime equivalent staff with a head count of 944. The permanent separation rate for the 2013-14 financial year was 6.5 per cent.

Staff annual earnings, showing the proportion of male and female staff in

earnings ranges, for 2013-14 are shown in figure 12.

Representation of employees by age group as at 30 June 2014 is illustrated in figure 13.

Figure 12 Employees by annual salary

0

20

40

60

80

100

120

Num

ber

Salary Range

FEMALE

MALE


Figure 13 Employees by age group

Managing our workforce

Workforce planning

The department recognises the importance of building and sustaining an agile and flexible workforce to meet current and future service delivery needs. During 2013-14 continuing business alignment strategies resulted in efficiencies being gained via structural and functional realignments to meet service delivery needs. Closer scrutiny of staff appointments was managed via an Establishment Management Program. The Strategic Workforce Plan was developed in 2013-14 to adhere to the Commission of Audit recommendations.

Attraction, recruitment and retention

Across the department we work to identify business critical roles and to embed workforce planning into business

plans. Business units critically review workforce needs and skills and align workforce planning with business and government priorities to ensure a flexible workforce and efficient service delivery. Succession strategies for critical roles include building internal talent through capability development, relieving opportunities and mobility programs.

Employee performance management framework

In 2013-14 a revised employee management framework was implemented that enables effective and efficient employment, induction, performance agreements and performance improvement processes.

0

50

100

150

200

Num

ber

Age group

FEMALE

MALE


The framework focuses on planning for improvement in service delivery, incorporating the Queensland Public Service values and providing opportunity for greater employee engagement and performance.

A new performance and development process ‘MyPDA’ focuses on performance conversations that are regular and ongoing throughout a 12 month period.

Work and life balance initiatives

Work-life balance options such as flexible hours of work arrangements, various leave types, compressed working week, part-time arrangements, job sharing and telecommuting are provided to assist employees. Participation in a Flexible Work Centre trial has recently commenced. Employees can access facility space that can be used for carers and breastfeeding.

Health and wellness initiatives

The department provides an environment that protects the health and safety of everyone in the workplace. In 2013–14, health and wellness initiatives included:

comprehensive health assessments for senior executives

general health assessments for all staff

flu vaccination program

ergonomic and posture care assessments

employee assistance program.

Injury and claims management

The department works to continuously improve our rehabilitation, return to work and injury management systems. The systems in place include:

timely incident reporting and implementation of appropriate preventative actions

prompt intervention when issues are reported

emergency management training and effective communications and information awareness strategies.

Developing our workforce

Progress has been made in moving the department’s talent and succession planning strategies to align with business objectives for a delivery culture partnering with strategic stakeholders. The department has commenced focusing on high performance and capability development in a number of inter-related activities:

learning and development targeting governance skills and public sector business skills, leadership and management

talent and capability development at business area level

executive, middle and emerging manager development

key occupational development in policy, legal and business skills

performance coaching and mentoring

easy to use and access online learning tools

customised panel of providers for skilled development of leaders and managers.

Supporting women’s career development

In March 2014, the department launched its Women in Leadership Strategy to support the progression of women into senior roles. Discussion panel events and


womens’ leadership workshops have been coordinated for women in senior levels within the department. A mentoring program will be implemented in 2014-15 alongside a range of other initiatives for departmental women at all levels.

Industrial and employee relations framework

Advice and support is provided to managers and employees in relation to entitlements, policies, processes and performance. The department initiated a policy reform project to review all human resources policies, procedures, guidelines and forms with the objective of ensuring the provision of current, concise information that is easy to use and understand. Most documents were updated this year with further improvements, such as the inclusion of smart forms, to be undertaken as soon as practicable.

The department has not been party to any industrial disputes during 2013-14.

The department has consulted with the union on a number of occasions in particular to discuss the implementation of new organisational structures within the department and potential impacts on staff.

During 2013–14 there were no disciplinary actions taken by the department and no employees were suspended. Management action was taken in response to two complaints.

Consultative Committee

The Consultative Committee is the principal consultative body for unions and management within the department. It is created pursuant to Part 9 of the Certified Agreement 2009 (Core EB). The committee meets on an as required basis.

Work Health Safety Committee

The Work Health Safety Committee’s roles and responsibilities are to:

assist in developing standards, policies and procedures, training programs and engagement of consultants relating to work health and safety

facilitate cooperation between the Director-General and employees regarding health and safety issues.

Early retirement, redundancy and retrenchment

During the period, 14 employees received redundancy packages at a total cost of $580,367. Employees who did not accept an offer of a redundancy were offered case management for a set period of time, where reasonable attempts were made to find alternative employment placements.

At the conclusion of this period, and where it was deemed that continued attempts of ongoing placement were no longer appropriate, employees yet to be placed were terminated and paid a retrenchment package. During the period, three employees received retrenchment packages at a total cost of $76,834.


Financial statements

Contents Statement of Comprehensive Income

Statement of Financial Position

Statement of Changes in Equity

Statement of Cash Flows

Statement of Comprehensive Income by Major Departmental Service and Commercialised

Business Unit

Statement of Assets and Liabilities by Major Departmental Service and Commercialised

Business Unit

Notes to and Forming Part of the Financial Statements

Management Certificate

Independent Auditor’s Report

General information

These financial statements cover the Department of State Development, Infrastructure and

Planning (the department).

The Department of State Development, Infrastructure and Planning is a Queensland

Government department established under the Public Service Act 2008.

The department is controlled by the State of Queensland which is the ultimate parent.

The head office and principal place of business of the department is:

Level 12, 100 George Street

Brisbane Queensland 4000

A description of the nature of the department’s operations and its principal activities is

included in the notes to the financial statements.

Amounts shown in these financial statements may not add to the correct sub-totals or

totals due to rounding.

For information in relation to the department’s financial statements please call +61 7 3224 6737,

email [email protected] or visit the department’s website

www.dsdip.qld.gov.au


mailto:[email protected]

http://www.dsdip.qld.gov.au/

Department of State Development, Infrastructure and PlanningStatement of Comprehensive Incomefor the period ended 30 June 2014

Notes

Income from continuing operationsAppropriation revenue for services 4

Land sales 5User charges and fees 6Grants and other contributions 7Interest 8Other revenue 9

Total revenue

Gains on disposal/remeasurement of assets 10

Total income from continuing operations

Expenses from continuing operationsEmployee expenses 11Supplies and services 13Grants and subsidies 14Depreciation and amortisation 15Impairment losses 16Cost of land sales 5Revaluation decrement 17Finance/borrowing costs 18Other expenses 19

Total expenses from continuing operations

Income tax equivalent expense 29

Other comprehensive incomeItems that will not be reclassified subsequently to operating result Increase/(decrease) in asset revaluation surplus 35

Total other comprehensive income

Total comprehensive income

(2,914)

20,301

(9,674)

17,387

The accompanying notes form part of these statements.

31,012

10,969

395,982

31,281

1,530

27,529

(1,580)

336,733

88,6788,251

11,622

48,416

327,059

10,65422,837

114,371

5,862 7,9842,316

84,371

2013

381

26,986

99,646

142,145

426,994

180,279

$'000

175,845

1,810

73,551

421,634

98,723

5,360

2014

3,312

80,675

$'000

15,297

323,747

7,975

(3,279)

(11,254)

57,760

Operating result from continuing operations before income tax equivalent expense

7,975

Operating result from continuing operations after income tax equivalent expense

20,085

20,446

(2,914)

(10,711)

7,796

- 60 -

Department of State Development, Infrastructure and PlanningStatement of Financial Positionas at 30 June 2014

Notes

Current assetsCash and cash equivalents 20Receivables 21Inventories 22Other current assets 23

Non-current assets classified as held for sale 24Total current assets

Non-current assetsReceivables 21Intangible assets 25Property, plant and equipment 26Investment property 28Deferred tax equivalent asset 29Other non-current assets 23

Total non-current assets

Total assets

Current liabilitiesPayables 30Interest-bearing liabilities 31Accrued employee benefits 32Income tax payable 29Other current liabilities 33Provisions 34

Total current liabilities

Non-current liabilitiesInterest-bearing liabilities 31Deferred tax equivalent liability 29Provisions 34

Total non-current liabilities

Total liabilities

Net assets

EquityContributed equityAccumulated deficitAsset revaluation surplus 35

Total equity

212,703

197,643

59,145

776,677

20,047

8,193

29,40151,36912,1712,028

10,305

112,771

2,971

11,433

704,399

21,834

1,481,076

$'0002014

203,30214,883

454,4171,941

589,05320,154

609,207

28,3596,814

745,518112,771

8,99912,035

914,496

1,523,703

2013$'000

60,22672,469

59,957644,442

617,8116,422

425,443

(385,969)

116,110

814


1,133,950

1,133,950

1,510,433

1,070,730

26,874

44,99654,356

(406,270)29,789

3,22678,307

410,346

82,3125,590

239,725

389,753

1,070,730

1,429,825

31,33542,820

150,028

151,823

- 61 -

Department of State Development, Infrastructure and PlanningStatement of Changes in Equityfor the period ended 30 June 2014

Notes

Contributed equityBalance as at 1 July Transactions with owners as owners:Eq - Appropriated equity injectionsEq - Appropriated equity withdrawals

- Net appropriated equity injections (Note 4) 4Non-appropriated equity injections

3636

Balance as at 30 June

Accumulated surplus/(deficit)Balance as at 1 July

Operating result from continuing operations after income tax equivalent expenseBalance as at 30 June

Asset revaluation surplusBalance as at 1 JulyIncrease/(decrease) in asset revaluation surplusBalance as at 30 June 35

162,893

2014

-

(406,270)

7,97526,874

25,598

21,814

1,599,598

$'000

1,510,433

29,789(2,914)


Non-appropriated equity withdrawals

-

Transferred from accumulated deficit on transfer of PSG operations

(82,569)

Net assets transferred to other departments due to restructuringNet assets transferred to/from other departments

22,989

20,301

7,904

Balance transferred to contributed equity on transfer of ULDA operations

(398,553)

1,429,825

3,536

2013$'000

(276,992)

(101,763) (32,146)(9,157)

(406,270)

37,019

-

(31,540)

1,114(506)

1,510,433

19,194

Balance transferred to contributed equity on transfer of PSG operations

-

(3,536)

29,789

(11,254)(385,969)

- 62 -

Department of State Development, Infrastructure and PlanningStatement of Cash Flowsfor the period ended 30 June 2014

Notes

Cash flows from operating activitiesInflows:

Land salesService appropriation receiptsUser charges and feesGrants and other contributions

GST collected from customers Interest receiptsRecoveries from other departmentsOther

Outflows:

Employee expensesSupplies and servicesGrants and subsidiesGST paid to suppliersGST remitted to Australian Taxation OfficeFinance/borrowing costsOther

38

Cash flows from investing activitiesInflows:

Sales of property, plant and equipmentLoans and advances redeemed

Outflows:

Payments for property, plant and equipmentPayments for intangible assetsPayments for work in progressLoans and advances providedNet cash provided by (used in) investing activities

Cash flows from financing activitiesInflows:

BorrowingsEquity injections

Outflows:Equity withdrawalsBorrowing redemptionsNet cash provided by (used in) financing activities

Net increase/(decrease) in cash and cash equivalentsCash and cash equivalents at beginning of financial year Net cash and cash equivalents transferred as part of 2012 machinery-of-Government change

Cash and cash equivalents at end of financial year 20

1,591

(196,698)

17,748

(1,680)

(98,712)

6,999

49,444

4,332

6,318

(15,543)

6,68431,397

$'000

(16,223)

(750)

(27,512)

60,226

413

(11,622)

10,430

16,486

21,588

(139,710)(98,946)

(7,796)

177,135

2,623

Net cash provided by (used in) operating activities

-

27,895

-

75,385

(304,582)

143,024

(23,539)

(13,343)

203,302

(103,303)

(219,261)

29,680

(43,931)

61,140

52,261

151,635

(89,539)

(1,716)

2014

19,225

9,661

1,385

98,411

(22,837)

(8,883)

(5,361)

2013

(17,768)

141,495

(445)(286)

(9,717)

(83,996)

168,030

80,951


GST input tax credits received from Australian Taxation Office

281,203

$'000

52

84,975

(253,273)

60,226

3,512

84,691

- 63 -

Department of State Development, Infrastructure and PlanningStatement of Comprehensive Income by Major Departmental Services and Commercial Business Unitfor the year ended 30 June 2014

2014 2013 2014 2013 2014 2013 2014 2013 2014 2013$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Income from continuing operations (2)

Appropriation revenue for services 65,241 66,545 40,112 28,170 46,645 51,026 23,847 34,538 - -Land sales - - - - - - - - 146,395 54,614User charges and fees 2,301 1,695 1,014 720 42,273 13,341 10,558 9,519 25,862 18,329Grants and other contributions 578 850 332 587 353 90 191 81 4,855 1,234Interest - - - - - - - 336 5,862 7,650Other revenue 33 83 11 30 15,013 3 - 85 239 (4,731)

Total revenue 68,153 69,173 41,469 29,507 104,284 64,460 34,596 44,559 183,213 77,096

Gains on disposal/remeasurement of assets - - - - 3,561 703 284 158 399 2,450

Total income from continuing operations 68,154 69,173 41,469 29,507 107,845 65,163 34,880 44,717 183,612 79,546

Expenses from continuing operations (2)

Employee expenses 40,303 42,941 24,613 20,808 10,055 12,539 18,005 19,774 5,747 2,462Supplies and services 15,713 14,367 14,331 7,555 52,638 29,955 15,020 11,431 20,957 8,636Grants and subsidies 10,082 10,831 1,189 315 14,901 6,943 1,115 9,747 50 -Depreciation and amortisation 788 788 840 675 8,110 8,090 793 690 440 263Impairment losses - - - - 7,661 - 169 - 421 293Cost of land sales - - - - - - - - 89,971 44,121Revaluation decrement - - (26,000) - 501 2,664 39,979 963 5,967 15,834Finance/borrowing costs - - - - 5,432 5,862 - - 6,190 1,933Other expenses 580 706 224 1,153 3,611 9,648 296 475 15,375 9,855

Total expenses from continuing operations 67,466 69,633 15,196 30,506 102,909 75,701 75,377 43,080 145,117 83,404

687 (460) 26,274 (999) 4,936 (10,538) (40,497) 1,637 38,495 (3,858)

- - - - - - - - (10,711) 1,214

687 (460) 26,274 (999) 4,936 (10,538) (40,497) 1,637 27,784 (2,642)

Other comprehensive income

Increase/(decrease) in asset revaluation surplus - - - - (2,914) 7,975 - - - -

Total other comprehensive income - - - - (2,914) 7,975 - - - -

Total comprehensive income 687 (460) 26,274 (999) 2,022 (2,563) (40,497) 1,637 27,784 (2,642)

Income 24,698 21,928 10,738 9,534 6,980 6,197 11,275 10,011 - -Expenses 24,080 22,389 10,967 9,734 6,805 6,327 11,032 10,221 - -

(1) Refer to Note 3 for a description of major departmental services.


State Development (1) Planning (1) Major Projects Office (1) Coordinator-General (1) Economic Development Queensland (1) (3)

Operating result from continuing operations before income tax equivalent

Income tax equivalent (expense)/benefit

Operating result from continuing operations after income tax equivalent

(2) The above corporate services income and expenses have been included in the respective departmental services.(3) Economic Development Queensland was formed via the amalgamation of Property Services Group and Urban Land Development Authority on 1 February 2013.

Items that will not be reclassified subsequently to operationg result

- 64 -

Department of State Development, Infrastructure and PlanningStatement of Comprehensive Income by Major Departmental Services and Commercial Business Unit (continued)for the year ended 30 June 2014

2014 2013 2014 2013 2014 2013 2014 2013$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Income from continuing operations (2)

Appropriation revenue for services - - - - - - 175,845 180,279Land sales - 30,076 (4,250) (319) - - 142,145 84,371User charges and fees - 9,023 (1,332) (4,212) - - 80,675 48,416Grants and other contributions - - (4,500) (526) - - 1,810 2,316Interest - - - - - - 5,862 7,984Other revenue - 4,994 - (83) - - 15,297 381

Total revenue - 44,093 (10,082) (5,140) - - 421,634 323,747

Gains on disposal/remeasurement of assets - - - - 1,116 - 5,360 3,312

Total income from continuing operations - 44,093 (10,082) (5,140) 1,116 - 426,994 327,059

Expenses from continuing operations (2)

Employee expenses - 1,122 - - - - 98,723 99,646Supplies and services - 2,734 (4,289) (1,127) - - 114,371 73,551Grants and subsidies - (325) (4,500) (525) - - 22,837 26,986Depreciation and amortisation - 142 - 6 - - 10,969 10,654Impairment losses - (368) - - - 1,605 8,251 1,530Cost of land sales - 13,646 (1,293) (7) - - 88,678 57,760Revaluation decrement - 8,382 - (314) - - 20,446 27,529Finance/borrowing costs - - - - - - 11,622 7,796Other expenses - 9,445 - - - - 20,085 31,282

Total expenses from continuing operations - 34,778 (10,082) (1,967) - 1,605 395,982 336,733

- 9,315 - (3,173) 1,116 (1,605) 31,012 (9,674)

- (2,794) - - - - (10,711) (1,580)

- 6,521 - (3,173) 1,116 (1,605) 20,301 (11,254)

Other comprehensive income

Increase/(decrease) in asset revaluation surplus - - - - - - (2,914) 7,975

Total other comprehensive income - - - - - - (2,914) 7,975-

Total comprehensive income - 6,521 - (3,173) 1,116 (1,605) 17,387 (3,279)

Income - - - - - - 53,691 47,670Expenses - - - - - - 52,885 48,671

(1) Refer to Note 3 for a description of major departmental services.

(3) Economic Development Queensland was formed via the amalgamation of Property Services Group and Urban Land Development Authority on 1 February 2013.(4) General non-attributed relates to an Impairment loss and impairment reversal for services that transferred from DSDIP as a result of the 2012 machinery-of-Government changesThe accompanying notes form part of these statements.

Total

Operating result from continuing operations before income tax equivalent

Income tax equivalent (expense)/benefit

Operating result from continuing operations after income tax equivalent

Property Services Group (3)

Items that will not be reclassified subsequently to operationg result

(2) The above corporate services income and expenses have been included in the respective departmental services.

General Non-Attributed (4)Eliminations between Property Services Group (3), Economic

Development Queensland(3) and DSDIP

- 65 -

Department of State Development, Infrastructure and PlanningStatement of Assets and Liabilities by Major Departmental Services and Commercialised Business Unitfor the year ended 30 June 2014

2014 2013 2014 2013 2014 2013 2014 2013$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Current assetsCash and cash equivalents 5 5 2 2 - - - -Receivables 2,163 2,344 862 473 130 517 2,065 7,585Inventories - - - 1,851 - 16,883 - -Other current assets 60 6 10 3 625 604 10 3

2,228 2,355 874 2,329 756 18,004 2,075 7,588

Non-current assets classified as held for sale - - 26,000 - 8,524 3,660 25,434 16,494

Total current assets 2,228 2,355 26,874 2,329 9,279 21,664 27,509 24,082

Non-current assetsReceivables - - 18,734 - - - - -Intangible assets 21 221 1,857 2,144 10 17 4,524 4,412Property, plant and equipment 2,196 2,914 4,323 3,902 322,928 409,265 59,437 112,114Investment property - - - - - - - -Deferred tax equivalent asset - - - - - - - -Other non-current assets - - - - 11,433 12,035 - -

Total non-current assets 2,218 3,135 24,914 6,046 334,371 421,317 63,961 116,526

Total assets 4,446 5,490 51,788 8,375 343,650 442,981 91,470 140,608

Current liabilitiesPayables 3,444 4,185 2,382 2,200 7,626 8,254 1,636 5,048Interest-bearing liabilities - - - - 8,409 8,109 -Accrued employee benefits 1,157 777 781 324 279 221 493 380Income tax payable - - - - - - - -Other current liabilities 67 70 68 - 2,570 9 11,951 2,070Provisions - - - - - - 18,272 21,455

Total current liabilities 4,668 5,032 3,231 2,524 18,883 16,593 32,352 28,953

Non-current liabilitiesPayables - - - - - - - -Interest-bearing liabilities - - - - 80,106 88,536 - -Deferred tax equivalent liability - - - - - - - -Provisions - - - - - - 3,226 5,590

Total non-current liabilities - - - - 80,106 88,536 3,226 5,590

Total liabilities 4,668 5,032 3,231 2,524 98,989 105,129 35,577 34,543

(1) Refer to note 3 for a description of major departmental services.

State Development (1) Planning (1) Major Projects Office (1) Coordinator-General (1)

Please note the department has systems in place to allocate assets and liabilities to departmental services.


- 67 -

- 66 -

Department of State Development, Infrastructure and PlanningStatement of Assets and Liabilities by Major Departmental Services and Commercialised Business Unit (continued) for the year ended 30 June 2014

2014 2013 2014 2013 2014 2013 2014 2013$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Current assetsCash and cash equivalents 188,934 96,221 14,360 (36,004) - - 203,302 60,226Receivables 9,663 17,930 - 48,102 - (4,484) 14,883 72,469Inventories 425,443 435,683 - - - - 425,443 454,417Other current assets 108 1,325 - - - - 814 1,941

624,148 551,159 14,360 12,098 - (4,484) 644,442 589,053

Non-current assets classified as held for sale - - - - - 59,957 20,154

Total current assets 624,148 551,159 14,360 12,098 - (4,484) 704,399 609,207

Non-current assetsReceivables 20,047 28,359 - - (18,734) - 20,047 28,359Intangible assets 10 20 - - - - 6,422 6,814Property, plant and equipment 228,928 217,323 - - - - 617,811 745,518Investment property 112,771 112,771 - - - - 112,771 112,771Deferred tax equivalent asset 8,193 8,999 - - - - 8,193 8,999Other non-current assets - 1 - - - - 11,433 12,035

Total non-current assets 369,949 367,473 - - (18,734) - 776,677 914,496

Total assets 994,098 918,632 14,360 12,098 (18,734) (4,484) 1,481,076 1,523,703

Current liabilitiesPayables 44,058 31,862 - 4,308 - (4,484) 59,145 51,369Interest-bearing liabilities 20,992 4,061 - - - - 29,401 12,171Accrued employee benefits 261 323 - - - - 2,971 2,028Income tax payable 21,834 10,305 - - - - 21,834 10,305Other current liabilities 30,341 29,185 - - - - 44,996 31,335Provisions 36,084 21,365 - - - - 54,356 42,820

Total current liabilities 153,570 97,101 - 4,308 - (4,484) 212,703 150,028

Non-current liabilitiesPayables 18,734 - - - (18,734) - - -Interest-bearing liabilities 36,004 63,287 - - - - 116,110 151,823Deferred tax equivalent liability 78,307 82,312 - - - - 78,307 82,312Provisions - - - - - - 3,226 5,590

Total non-current liabilities 133,045 145,599 - - (18,734) - 197,643 239,725

Total liabilities 286,615 242,700 - 4,308 (18,734) (4,484) 410,346 389,753

(1) Refer to note 3 for a description of major departmental services.(2) General non-attributable relates to machinery-of-Government receivables and payables for services transferred out of the department.


General-non-attributable (2)Economic Development Queensland (1)

Eliminations between Economic Development Queensland and DSDIP

Total

Please note the department has systems in place to allocate assets and liabilities to departmental services.

- 67 -

Department of State Development, Infrastructure and Planning Notes to and forming part of the Financial Statements 2013-14

Note Page Note Title 1 10 Objectives and principal activities of the department 2 10-24 Summary of significant accounting policies 3 24 Major departmental services 4 25 Reconciliation of payments from consolidated fund to appropriation

revenue for services recognised in Statement of Comprehensive Income

Reconciliation of payments from consolidated fund to equity adjustment recognised in contributed equity

5 25 Land sales 6 25 User charges and fees 7 25 Grants and other contributions 8 25 Interest9 25 Other revenue 10 25 Gains on disposal/ remeasurement of assets 11 26 Employee expenses 12 26-28 Key management personnel and remuneration expenses 13 29 Supplies and services14 29 Grants and subsidies 15 29 Depreciation and amortisation16 29 Impairment losses17 29 Revaluation decrement18 29 Finance/borrowing costs19 29 Other expenses20 30 Cash and cash equivalents 21 30 Receivables22 30 Inventories23 30 Other assets24 30 Non-current assets classified as held for sale 25 31-32 Intangible assets26 33-34 Property, plant and equipment 27 35-37 Fair value28 38 Investment property29 38-39 Income tax equivalent 30 39 Payables31 39 Interest-bearing liabilities32 39 Accrued employee benefits 33 39 Other liabilities34 39-40 Provisions35 40 Asset revaluation surplus by class 36 41 Restructuring of administrative arrangements 37 42 Jointly controlled operations 38 42 Reconciliation of operating surplus to net cash from operating activities 39 42 Non-cash financing and investing activities 40 42-43 Commitments for expenditure 41 43 Contingencies42 43 Events occurring after balance date 43 43-46 Financial instruments44 46 Leases - as lessor 45 47-48 Schedule of administered Items

- 68 -


1. Objectives and principal activities of the Department of State Development, Infrastructure andPlanning (the department) The department brings together the functions of the Coordinator-General, economic and regional development, major project delivery, government land management, infrastructure and planning into a strong central agency to grow the economy and champion the interests of business and industry for communities across Queensland. Our objectives include:

Champion the interests of business and industry Fast track delivery of major resource, land and economic development projects Assist property and construction industries to grow and flourish through streamlined planning

processes Re-empower local governments and their communities to plan for their futures Improve service delivery

2. Summary of significant accounting policies

(a) Statement of compliance

The department has prepared these financial statements in compliance with section 42 of the Financial and Performance Management Standard 2009.

These financial statements are general purpose financial statements and have been prepared on an accrual basis in accordance with Australian Accounting Standards and Interpretations. In addition, the financial statements comply with Queensland Treasury and Trade’s Minimum Reporting Requirements for the year ending 30 June 2014, and other authoritative pronouncements.

With respect to compliance with Australian Accounting Standards and Interpretations, the department has applied those requirements applicable to not-for-profit entities, as the department is a not-for-profit entity. Except where stated, the historical cost convention is used.

(b) The reporting entity

The financial statements include all income, expenses, assets, liabilities and equity of the department including the commercialised business unit, Economic Development Queensland (EDQ).

The Economic Development Act 2012 came into effect from 1 February 2013, repealing the Industrial Development Act 1963 and the Urban Land Development Authority Act 2007. EDQ delivers a range of services under the Economic Development Act 2012.

The department has no controlled entities.

The major departmental services undertaken by the department are disclosed in note 3.

The department has an interest in a jointly controlled operation, Woodlands Andergrove, in partnership with the Mackay Regional Council to develop and sell land lots located at Bedford Road, Andergrove in Mackay. In accordance with the partnership agreement, the department’s interest in the joint venture is 50%, refer note 2(w).

Except where otherwise stated the department employed consistent accounting policies in the preparation and presentation of these financial statements between the reporting period and prior year.

(c) Administered transactions and balances

The department administers, but does not control, certain resources on behalf of the Queensland Government. In doing so, it has responsibility and is accountable for administering related transactions and items, but does not have the discretion to deploy the resources for the achievement of the department's objectives.

Administered transactions and balances are disclosed in note 45. These balances are not significant in comparison to the department’s overall financial performance/financial position.

- 69 -


(c) Administered transactions and balances (continued)

On 4 February 2013, as a result of the Administrative Arrangements Amendment Order (No.1) 2013, the Queensland Reconstruction Authority was transferred from the Minister of State Development, Infrastructure and Planning to the Minister for Local Government, Community Recovery and Resilience. The authority is a statutory body under the Queensland Reconstruction Authority Act 2011 and prepares separate financial statements.

(d) Appropriation revenue for services/administered revenue

Appropriations provided under the Appropriation Act 2013 are recognised as revenue when received or when departmental services receivables are recognised after approval by Queensland Treasury and Trade.

Amounts appropriated to the department for transfer to other entities in accordance with legislative or other requirements are reported as 'administered' item appropriations.

(e) User charges and fees and Other revenue

User charges and fees and Other revenue controlled by the department are recognised as revenues when the revenue has been earned and can be measured reliably with a sufficient degree of certainty. When the services have been performed and/or ownership of the goods has passed to the clients, the revenue is recognised by either raising invoices or accruals. User charges and fees and Other revenue are controlled by the department where they can be deployed for the achievement of departmental objectives.

(f) Interest Revenue

Interest revenue is recognised as it accrues.

(g) Grants and other contributions

Grants, contributions, donations and gifts that are non-reciprocal in nature are recognised as revenue in the year the department obtains control over them (control is generally obtained at the time of receipt). Where grants are received that are reciprocal in nature, revenue is progressively recognised as it is earned, according to the terms of the funding arrangements.

Contributed assets are recognised at their fair value. The accounting treatment for contributions of services is explained in note 2(ae).

(h) Special payments

Special payments include ex-gratia expenditure and other expenditure that the department is not contractually or legally obligated to make to other parties. In compliance with the Financial and Performance Management Standard 2009, the department maintains a register setting out details of all special payments greater than $5,000. The total of all special payments (including those of $5,000 or less) is disclosed separately within other expenses, refer to note 19. However, descriptions of the nature of special payments are only provided for special payments greater than $5,000.

(i) Cash and cash equivalents

For the purposes of the Statement of Financial Position and Statement of Cash Flows, cash assets include all cash and cheques receipted but not banked at 30 June 2014 as well as deposits at call with financial institutions.

(j) Receivables

Trade debtors are recognised at the amounts due at the time of sale or service delivery that is the agreed purchase/contract price. Settlement of these amounts is required within 30 days from the invoice date.

- 70 -


(j) Receivables (continued)

The collectability of receivables is assessed periodically with an allowance being made for impairment. All known bad debts were written-off as at 30 June 2014. Increases in the allowance for impairment are based on loss events as disclosed in notes 21 and 43(c).

Loans and advances are recognised at the face value of the principal outstanding and finance leases are recognised at the value of the net investment of the lease agreement outstanding refer to note 2(v). Terms are as recorded in individual loan and lease agreements with the leases ranging from 10 to 30 years. On full repayment of finance leases, title for the relevant property is transferred to the purchaser.

Other debtors generally arise from transactions outside the usual operating activities of the department and are recognised at their assessed values. Terms are set based on the operations of the particular entities, no interest is charged and no security is obtained.

(k) Inventories

Land purchased for the purpose of resale is recognised at the lower of cost and net realisable value. Cost includes the cost of acquisition and development of the land to its existing condition, ready for sale. These costs are assigned to subdivided land lots on a weighted average basis when the lots are sold.

For residential land inventory net realisable value is determined on the basis of the department's normal selling pattern. Expenses associated with marketing, selling and distribution are deducted to determine net realisable value. For industrial land inventory the net realisable value is considered to be the market value or list price at which these assets are made available for sale. For industrial undeveloped land inventory, where a normal selling pattern is difficult to determine, the land values are assessed by an independent valuer on a sample basis. These values are monitored and assessed against the cost to ensure compliance with AASB 102 Inventories.

Revenue from the sale of land is recognised at the time of settlement when the risks and rewards of ownership have passed to the buyer and the department retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the units sold.

(l) Non-current assets classified as held for sale

Non-current assets classified as held for sale consist of those assets that management has determined are available for immediate sale in their present condition, for which their sale is highly probable within the next twelve months.

In accordance with AASB 5 Non-current Assets Held for Sale and Discontinued Operations, when an asset is classified as held for sale, its value is measured at the lower of the asset’s carrying amount and fair value less costs to sell. Any restatement of the asset’s value to fair value less costs to sell (in compliance with AASB 5) is a non-recurring valuation.

The assets are no longer amortised or depreciated upon being classified as held for sale.

(m) Assets under construction (work in progress)

Work in progress is recognised at cost. All costs relating to items of property, plant and equipment and intangible assets constructed in house are recorded as work in progress until completion of the project using all direct and indirect costs, where the latter are reliably attributable. Work in progress performed under external contracts is recorded using the invoice amount supplied by the contractor.

The department does not capitalise finance and borrowing costs.

(n) Acquisitions of assets

Actual cost is used for the initial recording of all non-current physical and intangible asset acquisitions. Cost is determined as the value given as consideration plus costs incidental to the acquisition, including all other costs incurred in getting the assets ready for use, including architects' fees and engineering design fees. However, any user training costs are expensed as incurred.

- 71 -


(n) Acquisitions of assets (continued)

Where assets are received free of charge from a Queensland Government entity (whether as a result of a machinery-of-Government or other involuntary transfer), the acquisition costs are recognised at the gross carrying amount in the books of the transferor immediately prior to the transfer together with any accumulated depreciation.

Assets acquired at no cost or for nominal consideration, other than from an involuntary transfer from a Queensland Government entity, are recognised at their fair value at the date of acquisition in accordance with AASB 116 Property, Plant and Equipment.

(o) Property, plant and equipment

Items of property, plant and equipment with a cost or other value equal to or in excess of the following thresholds are recognised for financial reporting purposes in the year of acquisition:

Land $1 Buildings $10,000 Infrastructure $10,000 Major plant and equipment $5,000 Plant and equipment $5,000 Other (including heritage and cultural) $5,000

Items with a lesser value are expensed in the year of acquisition.

(p) Intangible assets

Intangible assets with a cost or other value equal to or greater than $100,000 are recognised in the financial statements; items with a lesser value are expensed. Each intangible asset, less any anticipated residual value, is amortised over its estimated useful life to the department. The residual value is zero for all of the department's intangible assets.

It has been determined that there is not an active market for any of the department's intangible assets. As such, the assets are recognised and carried at cost less accumulated amortisation and accumulated impairment losses where applicable.

No intangible assets have been classified as held for sale or form part of a disposal group held for sale.

Purchased software The purchase cost of software has been capitalised and is being amortised on a straight-line basis over the period of the expected benefit to the department, refer to note 2(s).

Internally generated software Expenditure on research activities relating to internally generated intangible assets is recognised as an expense in the period in which it is incurred. Costs associated with the development of computer software have been capitalised and are amortised on a straight-line basis over the period of expected benefit to the department, refer to note 2(s).

Easements Easements are a purchased right of access held over land owned by parties external to the department. These easements exist to facilitate current and future industry development within infrastructure corridors. The Titles Office in the Department of Natural Resources and Mines register easements on survey plans.

The department holds numerous easements, however only reports as intangible assets those easements that individually meet the recognition threshold of $100,000. Each easement that does not meet this threshold is expensed.

Easements acquired over land are recognised at cost and are considered to have an indefinite useful life. The easements are not amortised but are instead assessed annually for impairment.

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(q) Revaluations of non-current physical assets and intangible assets

Land, buildings, infrastructure, major plant and equipment and heritage and cultural assets are measured at fair value in accordance with AASB 116 Property, Plant and Equipment, AASB 13 Fair Value Measurement and Queensland Treasury and Trade's Non-Current Asset Policies for the Queensland Public Sector. These assets are reported at their revalued amounts, being the fair value at the date of valuation, less any subsequent accumulated depreciation and impairment losses where applicable.

In respect of these asset classes, the cost of items acquired during the financial year has been judged by management of the department to materially represent their fair value at the end of the reporting period.

Plant and equipment other than major plant and equipment is measured at cost in accordance with Queensland Treasury and Trade's Non-Current Asset Policies for the Queensland Public Sector. The carrying amounts for plant and equipment at cost should not materially differ from their fair value.

Intangible assets are measured at their historical cost, unless there is an active market for the assets concerned (in which case they are measured at fair value).

Property, plant and equipment classes measured at fair value (refer above) are revalued on an annual basis either by appraisals undertaken by an independent professional valuer or internal expert, by the use of appropriate and relevant indices or by the income approach being calculated using the discounted cash flow of rental income. For financial reporting purposes, the revaluation process is overseen by the department’s Chief Finance Officer, who determines the specific revaluation practices and procedures in conjunction with the asset managers. The Audit and Risk Management Committee (of which the department’s Chief Finance Officer is a regular invited guest) reviews revaluation processes overseen by the Chief Finance Officer.

Revaluations using independent professional valuer or internal expert appraisals are undertaken at least once every five years. However, if a particular asset class experiences significant and volatile changes in fair value (i.e. where indicators suggest that the value of the class of asset may have changed by 20 per cent or more since the previous reporting period), it is subject to revaluation in the reporting period, where practicable, regardless of the timing of previous revaluation.

The fair values reported by the department are based on appropriate valuation techniques that maximise the use of available and relevant observable inputs and minimise the use of unobservable inputs, refer to note 2(r).

Where assets have not been specifically appraised in the reporting period, their previous valuations are materially kept up-to-date via the application of relevant indices. The department ensures that the application of such indices results in a valid estimation of the assets' fair values at reporting date. The State Valuation Service (SVS) supplies the indices used for the various types of assets. Such indices are either publicly available, or are derived from market information available to SVS. SVS provides advice regarding validity and appropriateness for application to the relevant assets. In some cases, indices used are also tested for reasonableness by applying the indices to a sample of assets, comparing the results to similar assets that have been valued by an independent professional valuer or internal expert, and analysing the trend of changes in values over time. Through this process, which is undertaken annually, management assesses and confirms the relevance and suitability of indices provided by SVS based on the department’s circumstances.

Early in the reporting period, the department reviewed all fair value methodologies in light of the new principles in AASB 13 Fair Value Measurement. No changes in valuation methodologies were identified. Any revaluation increment arising on the revaluation of an asset is credited to the asset revaluation surplus of the appropriate class, except to the extent it reverses a revaluation decrement for the class previously recognised as an expense. A decrease in the carrying amount on revaluation is charged as an expense, to the extent it exceeds the balance, if any, in the revaluation surplus relating to that class.

On revaluation, accumulated depreciation is restated proportionately with the change in the carrying amount of the asset and any change in the estimate of remaining useful life.

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(q) Revaluations of non-current physical assets and intangible assets (continued)

Materiality concepts under AASB 1031 Materiality are considered in determining whether the difference between the carrying amount and the fair value of an asset is material.

Separately identified components of assets are measured on the same basis as the assets to which they relate.

(r) Fair Value Measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions (that is an exit price) regardless of whether that price is directly derived from observable inputs or estimated using another valuation technique.

Observable inputs are publicly available data that are relevant to the characteristics of the assets/liabilities being valued. Observable inputs used by the department include, but are not limited to, published sales data for land and buildings.

Unobservable inputs are data, assumptions and judgements that are not available publicly, but are relevant to the characteristics of the assets/liabilities being valued. Significant unobservable inputs used by the department include, but are not limited to, subjective adjustments made to observable data to take account of the characteristics of the department’s assets and liabilities, records of recent construction costs (and/or estimates of such costs) for assets' characteristics and assessments of physical condition and remaining useful life. Unobservable inputs are used to the extent that sufficient relevant and reliable observable inputs are not available for similar assets/liabilities.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

All assets and liabilities of the department for which fair value is measured or disclosed in the financial statements are categorised within the following fair value hierarchy, based on the data and assumptions used in the most recent specific appraisals:

• level 1 – represents fair value measurements that reflect unadjusted quoted market prices in activemarkets for identical assets and liabilities;

• level 2 – represents fair value measurements that are substantially derived from inputs (other thanquoted prices included within level 1) that are observable, either directly or indirectly; and

• level 3 – represents fair value measurements that are substantially derived from unobservableinputs.

None of the department’s valuations of assets or liabilities are eligible for categorisation into level 1 of the fair value hierarchy. As 2013-14 is the first year of application of AASB 13 Fair Value Measurement by the department, there were no transfers of assets between fair value hierarchy levels during the period.

More specific fair value information about the department’s property, plant and equipment and investment property is outlined in notes 26 and 28, respectively.

(s) Amortisation and depreciation of property, plant, equipment and intangible assets

Land, heritage and cultural assets and easements are not depreciated or amortised as they have an unlimited useful life. All other intangible assets of the department have finite useful lives and are amortised on a straight-line basis, refer note 2(p).

Property, plant and equipment is depreciated on a straight-line basis so as to allocate the net cost or revalued amount of each asset, less its estimated residual value, progressively over its estimated useful life to the department.

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(s) Amortisation and depreciation of property, plant, equipment and intangible assets (continued)

Assets under construction (work in progress) are not depreciated until they reach service delivery capacity. Service delivery capacity relates to when construction is complete and the asset is first put to use or is installed ready for use in accordance with its intended application. These assets are then reclassified to the relevant classes with property, plant and equipment.

Where assets have separately identifiable components that are subject to regular replacement, these components are assigned useful lives distinct from the asset to which they relate and are depreciated accordingly.

Any expenditure that increases the originally assessed capacity or service potential of an asset is capitalised and the new depreciable amount is depreciated over the remaining useful life of the asset to the department.

The depreciable amount of leasehold improvements is allocated progressively over the estimated useful lives of the improvements or the unexpired period of the lease, whichever is the shorter. The unexpired period of a lease includes any option period where exercise of the option is probable.

For each class of depreciable and amortisable asset the following rates are used:

(t) Impairment of non-current assets

All non-current physical assets and intangible assets are assessed for indicators of impairment on an annual basis. If an indicator of possible impairment exists, the department determines the asset's recoverable amount. Any amount by which the asset's carrying amount exceeds the recoverable amount is recorded as an impairment loss.

The asset's recoverable amount is determined as the higher of the asset's fair value less costs to sell and depreciated replacement cost.

Asset class Category 2014 Rate %

2013 Rate %

Buildings Buildings and improvements Land improvements

1.32-16.67% 2.44-16.67%

1.25-25%2.44-16.67%

Infrastructure Water infrastructure Wharf and jetty structures

2.5-6.67% 2-2.5%

1.25-4%1-10%

Major plant and equipment

Ship unloaders and loaders Jetty conveyors and transfer stations Sea water supply equipment Material handling equipment Caustic handling equipment

2.5-6.67% 2.5-6.67% 2.5-6.67%

3.33-6.67% 2.5-6.67%

2.5-6.67%2-6.67%

2.86-10%2-6.67%2-6.67%

Plant and equipment Computer equipment Motor vehicles Office equipment Leasehold improvements Plant and equipment

10-33.33% 16.67%

4.36-33.33% 2.5-27.27% 10-14.29%

10-33.33%16.67%

10-33.33%2.5-35.29%10-14.29%

Intangible assets Software purchased Software internally generated

15.58% 20-35.29%

18.46%20-46.15%

An impairment loss is recognised immediately in the Statement of Comprehensive Income, unless the asset is carried at a revalued amount. When the asset is measured at a revalued amount, the impairment loss is offset against the asset revaluation surplus of the relevant class to the extent available.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income, unless the asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase to the extent that it reverses write downs of previously impaired revaluation increments. Refer note 2(q).

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(u) Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost including transaction costs. Where investment property is acquired at no or nominal cost it is recognised at fair value. Investment property is subsequently carried at fair value, being revalued as at each reporting date. Fair value is based on selling prices in an active property market adjusted, if necessary, to reflect the nature, location or condition of the specific investment property. If there is no active property market, alternative valuation methods are used, such as recent selling prices in less active markets, or discounted cash flow projections.

Gains or losses arising from changes in the fair value of investment property are included in the operating result for the period in which they arise. Investment property is not depreciated and is not tested for impairment.

Rental revenue from investment property is recognised as income on a periodic straight-line basis over the lease term.

(v) Leases

A distinction is made in the financial statements between finance leases that effectively transfer from the lessor to the lessee substantially all risks and benefits incidental to ownership, and operating leases, under which the lessor retains substantially all risks and benefits.

The Department of Natural Resources and Mines acts as an agent on behalf of the department in administering the finance and operating leases of the department’s commercialised business unit (as lessor) in accordance with the Land Act 1994. The department has appointed local real estate agents to administer other rental properties.

Where a non-current physical asset is sold by means of a finance lease, the resulting finance lease is recorded as receivable at an amount equal to the net investment of the lease agreement. Lease income from finance leases is recognised at a constant periodic rate of return on the net investment in the lease.

Where a non-current asset is subject to an operating lease, it is recorded according to the nature of the asset. Operating lease receipts are representative of the pattern in which benefits derived from the leased assets diminish and are recognised in the period in which they are earned.

Operating lease payments are representative of the pattern of benefits derived from the leased assets and are expensed in the period in which they are incurred.

Leaseback arrangements Where an announcement of a major public infrastructure project causes large scale pre-purchase, and where there is a considerable time before vacant possession is required, the department will consider proposals to enter into leaseback or tenancy arrangements with the vendor until the property is required for the purpose for which it was purchased.

The department applies the whole-of-Government policy issued by the Department of Natural Resources and Mines where rent for the first three years of an initial tenancy is set at $1,000 per annum or market value, whichever is lower, but is not lower than the minimum amount of $500 per annum. For the balance of the initial term, if any, the rent shall be $500 per annum or the market rental, which ever is the greater. Where market rent is applied it will be subject to annual CPI increases during the currency of the lease.

(w) Jointly controlled operations

The department’s interest in unincorporated jointly controlled operations is accounted for by recognising in its financial statements its share of the assets, classified according to the nature of the assets, liabilities it has incurred, its share of liabilities jointly incurred, its share of income and expenses of the joint venture and any expenses incurred in respect of its interest in the jointly controlled operations.

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(x) Payables and Other liabilities

Trade creditors are recognised upon receipt of the goods and services at the contracted amount (net of any discounts) to be paid for the goods and services received. Amounts owing are unsecured and are generally settled on 30-day terms unless otherwise specified by the creditor. Payables of a capital nature are settled within 12 months. Other liabilities are recognised as a liability in accordance with contract terms. Unearned revenue is recognised by identifying the portion of up front payment unearned as at 30 June 2014.

(y) Financial instruments

Recognition Financial assets and financial liabilities are recognised in the Statement of Financial Position when the department becomes party to the contractual provisions of the financial instrument.

Classification Financial instruments are classified and measured as: Cash and cash equivalents - held at fair value through the Statement of Comprehensive Income Receivables - held at amortised cost Payables - held at amortised cost Borrowings - held at amortised cost

Borrowings are initially recognised at fair value, plus any transaction costs directly attributable to the borrowings, and then subsequently held at amortised cost using the effective interest method. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life of a financial instrument, or when appropriate, a shorter period, to the net carrying amount of that instrument.

Any borrowing costs are added to the carrying amount of the borrowing to the extent they are not settled in the period in which they arise. Borrowings are classified as non-current liabilities to the extent that the department has an unconditional right to defer settlement until at least 12 months after reporting date.

All other disclosures relating to the measurement basis and financial risk management of financial instruments held by the department are included in note 43.

(z) Employee benefits

Employer superannuation contributions, annual leave levies and long service leave levies are regarded as employee benefits.

Payroll tax and workers' compensation insurance are a consequence of employing employees, but are not counted in an employee's total remuneration package. They are not employee benefits and are recognised separately as employee-related expenses.

Wages, salaries and sick leave Wages and salaries due but unpaid at reporting date are recognised in the Statement of Financial Position at current salary rates.

As the department expects such liabilities to be wholly settled within 12 months of reporting date, the liabilities are recognised at undiscounted amounts.

Prior history indicates that on average, sick leave taken in the reporting period is less than the entitlement accrued. This is expected to continue in future periods. Accordingly, it is unlikely that existing accumulated entitlements will be used by employees and no liability for unused sick leave entitlements is recognised.

As sick leave is non-vesting, an expense is recognised for this leave as it is taken.

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(z) Employee benefits (continued)

Annual leave The Queensland Government's Annual Leave Central Scheme (ALCS) became operational on 30 June 2008 for departments, commercialised business units and shared service providers. Under the scheme, a levy is made on the department to cover the cost of employees' annual leave (including leave loading and on-costs). The levies are expensed in the period in which they are payable. Amounts paid to employees for annual leave are claimed from the scheme quarterly in arrears.

No provision for annual leave is recognised in the department's financial statements as the liability is held on a whole-of-Government basis and reported in those financial statements prepared pursuant to AASB 1049 Whole of Government and General Government Sector Financial Reporting.

Long service leave Under the Queensland Government’s Long Service Leave Scheme, a levy is made on the department to cover the cost of employees’ long service leave. Levies are expensed in the period in which they are paid or payable. Amounts paid to employees for long service leave are claimed from the scheme quarterly in arrears.

No provision for long service leave is recognised in the department's financial statements, the liability being held on a whole-of-Government basis and reported in those financial statements prepared pursuant to AASB 1049 Whole of Government and General Government Sector Financial Reporting.

Superannuation Employer superannuation contributions are paid to QSuper, the superannuation scheme for Queensland Government employees, at rates determined by the Treasurer on advice of the State Actuary. Contributions are expensed in the period in which they are paid or payable. The department's obligation is limited to its contribution to QSuper.

The QSuper scheme has defined benefit and defined contribution categories. The liability for defined benefits is held on a whole-of-Government basis and reported in those financial statements prepared pursuant to AASB 1049 Whole of Government and General Government Sector Financial Reporting.

Key management personnel and remuneration Key management personnel and remuneration disclosures are made in accordance with section 5 of the Financial Reporting Requirements for Queensland Government Agencies issued by Queensland Treasury and Trade. Refer to note 12 for the disclosures on key management personnel and remuneration.

(aa) Provisions

Provisions are recorded when the department has a present obligation, either legal or constructive, as a result of a past event. They are recognised at the amount expected at the reporting date for which the obligation will be settled in a future period. Where the settlement of the obligation is expected after 12 or more months, the obligation is discounted to the present value using the appropriate discount rate.

(ab) Finance/Borrowing costs

Finance costs are recognised as an expense in the period in which they are incurred. Finance costs include: interest on bank overdrafts and short-term and long-term borrowings, ancillary administration charges, and debt neutrality fee applied in accordance with Queensland Treasury and Trade’s Commercialisation

of Government Business Activities in Queensland Policy Framework.

No borrowing costs are capitalised into qualifying assets.

(ac) Allocation of revenues and expenses from ordinary activities to corporate services

The department allocates revenues and expenses attributable to corporate services to major departmental services based on full-time equivalent employees. These are disclosed in the Statement of Comprehensive Income by Major Departmental Service and Commercialised Business Unit.

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(ad) Insurance

The department's non-current physical assets and other risks are insured through the Queensland Government Insurance Fund (QGIF), premiums being paid on a risk assessment basis. In addition, the department pays premiums to WorkCover Queensland in respect of its obligations for employee compensation.

(ae) Services received free of charge or for nominal value

Contributions of services are recognised only if the services would have been purchased if they had not been donated and their fair value can be measured reliably. Where this is the case, an equal amount is recognised as revenue and expense.

(af) Contributed equity

Non-reciprocal transfers of assets and liabilities between wholly-owned Queensland State Public Sector entities as a result of machinery-of-Government changes are adjusted to Contributed equity in accordance with Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities. Appropriations for equity adjustments are similarly designated.

(ag) Taxation

The department is a State body as defined under the Income Tax Assessment Act 1936 and is exempt from Commonwealth Government taxation with the exception of Fringe Benefits Tax (FBT) and Goods and Services Tax (GST). FBT and GST are the only Commonwealth Government taxes accounted for by the department. As such, GST credits receivable from and payable to the Australian Taxation Office are recognised. Refer note 21.

As a State body, the department is exempt from Commonwealth income taxation. Pursuant to the National Tax Equivalents Regime, the commercialised business unit Economic Development Queensland is required to make payments to the Queensland Government, equivalent to the amount of any Commonwealth income tax for which an exemption is received.

The income tax equivalent expense (referred to as income tax) for the period is the tax payable on the current period’s taxable income based on the national tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

AASB 112 Income Taxes uses a ‘Balance Sheet approach’ of calculating income tax balances. The Balance Sheet approach recognises when there is a difference between the carrying value of an asset or liability and its tax base. The differences are recognised at the tax rates expected to apply when the assets are recovered or liabilities are settled, based on those tax rates which are enacted or substantively enacted for each jurisdiction.

If applicable, deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

The deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

(ah) Issue of financial statements

The financial statements are authorised for issue by the Director-General and Chief Finance Officer at the date of signing the Management Certificate.

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(ai) Accounting estimates and judgements

The preparation of financial statements necessarily requires the determination and use of certain critical accounting estimates, assumptions and management judgements that have the potential to cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year. Such estimates, judgements and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in future periods as relevant.

Estimates and assumptions that may have a significant effect are outlined in notes 2(j), (k), (l), (q), (r), (s), (t), (u) and (aa). Any effect relating to estimates and assumptions is included in the figures reported in the following financial statement notes:

depreciation and amortisation – note 15 allowance for impairment of receivables – note 21 valuation of non-current assets classified as held for sale – note 24 valuation and impairment of property, plant and equipment – note 26 valuation of investment property – note 28 provisions – note 34 contingencies – note 41

The Australian Government passed its Clean Energy Act 2011 which resulted in the introduction of a price on carbon emissions made by Australian businesses from 1 July 2012.

From 1 July 2014, the government abolished the carbon tax. The withdrawal of the carbon pricing mechanism is not expected to have a significant impact on the department's critical accounting estimates, assumptions and management judgements.

(aj) Rounding and comparatives

Amounts included in the financial statements are in Australian dollars and have been rounded to the nearest $1,000 or where the amount is $500 or less, to zero, unless disclosure of the full amount is specifically required.

Comparative information has been restated where necessary to be consistent with disclosures in the current reporting period.

(ak) New and revised accounting standards

The department did not voluntarily change any of its accounting policies during 2013–14. The only Australian Accounting Standard changes applicable for the first time as from 2013-14 that have had a significant impact on the department's financial statements are those arising from AASB 13 Fair Value Measurement, as explained below.

AASB 13 Fair Value Measurement became effective from reporting periods beginning on or after 1 January 2013. AASB 13 sets out a new definition of ‘fair value’, as well as new principles to be applied when determining the fair value of assets and liabilities. The new requirements apply to all of the department's assets and liabilities (excluding leases) that are measured and/or disclosed at fair value or another measurement based on fair value. The impacts of AASB 13 relate to the fair value measurement methodologies used, and financial statement disclosures made in respect of such assets and liabilities.

The department reviewed its fair value methodologies (including instructions to valuers, data used and assumptions made) for all items of property, plant and equipment measured at fair value to determine whether those methodologies comply with AASB 13. To the extent that the previous methodologies were not in compliance with AASB 13, valuation methodologies were revised accordingly to be in line with AASB 13.

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(ak) New and revised accounting standards (continued)

AASB 13 has required an increased amount of information to be disclosed in relation to fair value measurements for both assets and liabilities. For those fair value measurements of assets or liabilities that substantially are based on data that is not 'observable' (i.e. accessible outside the department), the amount of information disclosed has significantly increased. Note 2(r) explains some of the principles underpinning the additional fair value information disclosed. Most of this additional information is set out in note 26 Property Plant and Equipment.

A revised version of AASB 119 Employee Benefits became effective from reporting periods beginning on or after 1 January 2013.

As the department does not directly recognise any employee benefit liabilities, refer to note 2(z), the only implications for the department are the revised concept of ‘termination benefits’ and the revised recognition criteria for liabilities for termination benefits. If termination benefits meet the AASB 119 timeframe criterion for ‘short-term employee benefits’, they will be measured according to the AASB 119 requirements for ‘short-term employee benefits’. Otherwise, termination benefits need to be measured according to the AASB 119 requirements for ‘other long-term employee benefits’. Under the revised standard, the recognition and measurement of ‘other long-term employee benefits’ are accounted for using most of the requirements for defined benefit plans.

The revised AASB 119 includes changed criteria for accounting for employee benefits as ‘short-term employee benefits’. However as the department is a member of the Queensland Government central schemes for annual leave and long service leave, this change in criteria has no impact on the department’s financial statements as the employer liability is held by the central scheme. The revised AASB 119 also includes changed requirements for the measurement of employer liabilities/assets arising from defined benefit plans, and the measurement and presentation of changes in such liabilities/assets.

The department makes employer superannuation contributions only to the QSuper defined benefit plan, and the corresponding QSuper employer benefit obligation is held by the State. Therefore, those changes to AASB 119 will have no impact on the department.

AASB 1053 Application of Tiers of Australian Accounting Standards became effective from reporting periods beginning on or after 1 July 2013. AASB 1053 establishes a differential reporting framework for those entities that prepare general purpose financial statements, consisting of two Tiers of reporting requirements – Australian Accounting Standards (commonly referred to as ‘Tier 1’), and the Australian Accounting Standards – Reduced Disclosure Requirements (commonly referred to as ‘Tier 2’).

Tier 1 requirements comprise the full range of AASB recognition, measurement, presentation and disclosure requirements that are currently applicable to reporting entities in Australia. The only difference between Tier 1 and Tier 2 requirements is that Tier 2 requires fewer disclosures than Tier 1.

Pursuant to AASB 1053, public sector entities like the department may adopt Tier 2 requirements for their general purpose financial statements. However, AASB 1053 acknowledges the power of a regulator to require application of the Tier 1 requirements. In the case of the department, Queensland Treasury and Trade is the regulator. Queensland Treasury and Trade has advised that its policy decision is to require adoption of Tier 1 reporting by all Queensland Government departments (including the Department of State Development, Infrastructure and Planning) and statutory bodies that are consolidated into the whole-of-Government financial statements. Therefore, the release of AASB 1053 and associated amending standards will have no impact on the department.

The department is not permitted to early adopt a new or amended accounting standard ahead of the specified commencement date unless approval is obtained from Queensland Treasury and Trade. Consequently, the department has not applied any Australian Accounting Standards or Interpretations that have been issued but are not yet effective. The department will apply these standards and interpretations in accordance with their respective commencement dates.

At the date of authorisation of the financial report, the only significant impacts of new or amended Australian Accounting Standards with future commencement dates are set out below.

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AASB 1055 Budgetary Reporting applies from reporting periods beginning on or after 1 July 2014. The department will need to include in its 2014-15 financial statements the original budgeted figures from the Income Statement, Balance Sheet, Statement of Changes in Equity, and Cash Flow Statement as published in the 2014-15 Queensland Government's Service Delivery Statements. The budgeted figures will need to be presented consistently with the corresponding financial statements (actuals), and will be accompanied by explanations of major variances between the actual amounts and the original budgeted figures.

In addition, the department will need to include the original budgeted information for major classes of administered income and expenses, and major classes of administered assets and liabilities. This budgeted information will need to be presented consistently with the corresponding administered information (actuals) and will be accompanied by explanations of major variances between the actual amounts and the budgeted financial information.

The following new and revised standards apply as from reporting periods beginning on or after 1 January 2014: AASB 10 Consolidated Financial Statements AASB 11 Joint Arrangements AASB 12 Disclosure of Interests in Other Entities AASB 127 (revised) Separate Financial Statements AASB 128 (revised) Investments in Associates and Joint Ventures AASB 2011 -7 Amendments to Australian Accounting Standards arising from the Consolidation and

Joint Arrangements Standards [AASB 1, 2, 3, 5, 7, 101, 107, 112, 118, 121, 124, 132, 133, 136,138, 139, 1023 & 1038 and Interpretations 5, 9, 16 & 17], and

AASB 2013-8 Amendments to Australian Accounting Standards - Australian ImplementationGuidance for Not-for-Profit Entities - Control and Structured Entities

AASB 10 redefines and clarifies the concept of control of another entity, and is the basis for determining which entities should be consolidated into an entity’s financial statements. AASB 2013-8 applies the various principles in AASB 10 for determining whether a not-for-profit entity controls another entity. The department assessed the nature of its relationships and determined no control exists with other entities. Therefore, once the AASB finalises its not-for-profit amendments to AASB 10, the department will need to reassess the nature of its relationships with other entities, including entities that are not currently consolidated.

AASB 11 deals with the concept of joint control and sets out new principles for determining the type of joint arrangement that exists, which in turn dictates the accounting treatment. The new categories of joint arrangements under AASB 11 are more aligned to the actual rights and obligations of the parties to the arrangement.

Subject to any not-for-profit amendments that are made to AASB 11, the department will need to assess the nature of any arrangements with other entities to determine whether a joint arrangement exists in terms of AASB 11. If a joint arrangement does exist, the department will need to follow the relevant accounting treatment specified in either AASB 11 or the revised AASB 128, depending on the nature of the joint arrangement. It has been assessed that the Woodlands Andergrove joint arrangement, which is disclosed in note 37, is a “joint operation” and there will be no change to the current accounting treatment under AASB 11.

AASB 9 Financial Instruments (December 2010) and 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 Interpretations 2, 5, 10, 12, 19 & 127] become effective from reporting periods beginning on or after 1 January 2017. The main impacts of these standards on the department are that they will change the requirements for the classification, measurement and disclosures associated with the department’s financial assets. Under the new requirements, financial assets will be more simply classified according to whether they are measured at amortised cost or fair value. Pursuant to AASB 9, financial assets can only be measured at amortised cost if two conditions are met. One of these conditions is that the asset must be held within a business model with the objective to hold assets in order to collect contractual cash flows. The other condition is that the contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

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The department has commenced reviewing the measurement of its financial assets against the new AASB 9 classification and measurement requirements. However, as the classification of financial assets at the date of initial application of AASB 9 will depend on the facts and circumstances existing at that date, the department's conclusions will not be confirmed until closer to that time. At this stage, and assuming no change in the types of transactions the department enters into, it is not expected that any of the department's financial assets will meet the criteria in AASB 9 to be measured at amortised cost. Therefore, as from the 2017–18 financial statements, all of the department's financial assets are expected to be required to be measured at fair value, and classified accordingly (instead of the measurement classifications presently used in notes 2(y) and 43). The same classification will be used for net gains/losses recognised in the Statement of Comprehensive Income in respect of those financial assets. In the case of the department's current receivables, as they are short-term in nature, the carrying amount is expected to be a reasonable approximation of fair value.

The department will not need to restate comparative figures for financial instruments on adopting AASB 9 as from 2017-18. However, changed disclosure requirements will apply from that time. A number of one-off disclosures will be required in the 2017-18 financial statements to explain the impact of adopting AASB 9. Assuming no change in the types of financial instruments that the department enters into, the department does not anticipate any significant disclosure impacts.

All other Australian accounting standards and interpretations with future commencement dates are either not applicable to the department’s activities, or have no material impact on the department.

3. Major departmental services

State Development State Development develops economic and infrastructure policies and plans, and facilitates industry development, regional development and investment projects.

Planning Planning is reforming the State’s planning framework to empower local governments and their communities and facilitate economic development.

Planning also includes the Government Land and Asset Management function, which strategically manages the Government’s land portfolio to ensure maximum utilisation and economic community outcomes.

Major Projects Office The Major Projects Office facilitates, manages and delivers high priority infrastructure and projects.

Coordinator-General The Coordinator-General delivers large scale projects under the State Development and Public Works Organisation Act 1971.

Economic Development Queensland Economic Development Queensland (EDQ) delivers land solutions to facilitate economic development including planning and development of residential, urban and industrial development projects.

- 83 -


Budgeted appropriation revenue for services Transfers to other headings - AdministeredLapsed appropriation revenue for services Total appropriated revenue for services receiptsLess: opening balance of appropriation revenue for receivablePlus: closing balance of appropriation revenue receivable Plus: opening balance of appropriation revenue payableNet appropriation revenueLess: Deferred appropriation refundable to QTT expense

Budgeted equity adjustment appropriationLapsed equity adjustment appropriationTotal equity adjustment receipts (payments)Plus: closing balance of equity adjustment receivableLess: opening balance of equity adjustment receivableEquity adjustment recognised in Contributed equity

Land salesLand salesTotal

Cost of land salesTotal

User charges and feesFee for service *Sale of goodsProperty incomeOther feesTotal user charges and fees

* Includes recovery of costs for Commonwealth Games venues of $36.878 million (2012-13: $7.472 million)

Grants and other contributionsGrantsContributionsGoods and services received below fair valueTotal grants and other contributions

InterestQueensland Treasury CorporationFinance leasesBank interestTotal interest

Other revenueRevenue from transfers of government property *Tender documents revenueSundry revenueTotal other revenue

* In 2013-14 refers to Agreement to dedicated road with the Department of Transport and Main Roads.

Gains on disposal/remeasurement of assetsGain on sale of property, plant and equipmentReversal of revaluation decrementReversal of impairment loss on receivablesTotal gains

13,918

Reconciliation of payments from consolidated fund to equity adjustment recognised in Contributed equity

358,734

2,316

5,862 7,984

1,111

311

574

84,371

736

184

180,279

9.

7.

8.

6.

2,772

2,167 -

176,561-

Notes to and forming part of the financial statements 2013-14

(716)180,279

68,509

(797)

218

-

-

1,455

(183,651)101,879

(9,157)(82,569)

1,670

2,241

57,760

1,810

5,157 4,331

88,678

797-

200

13,149

Reconciliation of payments from consolidated fund to appropriation revenue for services recognised in Statement of Comprehensive Income

Appropriation revenue for services recognised in Statement of Comprehensive Income

$'000

-

289,140

2014

177,135

(18,124)

$'000

84,371

6,825

426

39,572

318

(9,954)(81,772)

48,416

5.

(574)

4.

10.

(10,154)

2,558

381

-

754

15,297

3,312

Refer also to note 26 Property, Plant and Equipment.

-5,360

-

4,195

57,760

220

855

175,845

(93,881) (190,704)168,030

2,770

70

5,214

142,145

2881,091

2013

(1,474)

142,145

88,678

80,675

1,477

- 84 -


Employee expensesEmployee benefitsSalaries and wagesEmployer superannuation contributions (1)

Annual leave levy (1)

Long service leave levy (1)

Other employee benefits

Employee related expensesWorkers compensation premium (2)

Payroll tax (2)

Other employee related expensesTotal employee expenses

(1) Refer to Note 2(z).

Number of employees:

Key management personnel and remuneration expenses

(a) Key management personnel

Appointed on 3 April 2012.

Responsibilities

The Deputy Director-General, State Development is responsible for attracting and retaining economic activity and infrastructure policy development for the State. The Deputy Director-General, Planning and Property is responsible for the development and implementation of the State planning framework for local governments and industry by leading planning policy and reform, local planning and regional planning. Responsibility for managing the Government's land portfolio to ensure maximum utilisation and economic community outcomes that was previously held by the Deputy Director-General, Government Land and Asset Management transferred to the renamed position from 17 January 2014.

The Coordinator-General is responsible for facilitating and regulating major development projects in Queensland.

CEO Equivalent - s4 State Development and Public Works Act 1971

CEO / s122 Public Service Act 2008


SES4 / Public Service Act 2008

Current incumbentsContract classification and appointment authority

Date appointed/ established to position (Date resigned/ceased from position)

The Deputy Director-General, Major Projects Office is responsible for the timely facilitation and delivery of infrastructure to industry and the community.The Deputy Director-General, Government Land and Asset Management was responsible for managing the Government's land portfolio to ensure maximum utilisation and economic community outcomes. These responsibilities were transferred to the renamed position Deputy Director-General, Planning and Property from 17 January 2014.The Deputy Director-General, Regional Services is responsible for the delivery of an integrated suite of business, industry, regional development and planning services on behalf of, or in partnership with a range of Queensland Government departments.

2013

1,628

2014

10,559

8,683

The Director-General is responsible for the efficient, effective and economic administration of the agency and to drive the economic development of Queensland.



SES4 / s122 Public Service Act 2008

933

12.

66,166

395

2013

9,120

Appointed on 20 June 2011.

Appointed 4 February 2013. Role renamed 17 January 2014.

Appointed 8 April 2013.

Appointed 1 February 2013. Role ceased 17 January 2014.

Appointed 1 May 2012.

Appointed to role on 28 March 2012.

Appointed 17 December 2013.

71,426

General Manager - Economic Development Queensland

Position


The Chief Operating Officer is responsible for providing business, corporate policy, governance and risk management services to this department and the Department of Local Government, Community Recovery and Resilience.

4,488

Deputy Director-General- Planning and Property (previously Planning only)


The General Manager, Economic Development Queensland is responsible for the planning and development of residential, urban and industrial development projects.


Deputy Director-General- Regional Services

The following details for key management personnel include those positions that had authority and responsibility for planning, directing and controlling the activities of the department during 2013–14. Further information on these positions can be found in the body of the Annual Report under the section relating to Executive Management.

99,646

Deputy Director-General- Government Land and Asset Management

Deputy Director-General- State Development

98,723

426

9,994

883 848

$'000

701

Deputy Director-General- Major Projects Office

Appointed 1 February 2013 Incumbent resigned 16 May 2014.

11.

Chief Operating Officer (formerly Deputy Director-General - Strategy and Governance)

Director-General

Coordinator-General

$'000

7,462

2014

1,182

1,176

The number of employees as at 30 June, including both full-time and part-time employees, measured on a full-time equivalent basis (reflecting Minimum Obligatory Human Resource Information (MOHRI) is:

4,030

(2) Cost of workers’ compensation insurance and payroll tax are a consequence of employing employees, but are not counted in employees’ total remuneration package. They are not employee benefits, but rather employee related expenses.

- 85 -


Key management personnel and remuneration expenses (continued)

(b) Remuneration expenses

Remuneration expenses for key management personnel comprise the following components:• Short-term employee expenses which include:

---

• • •

6 26

- 8 37

$ '000 $ '000 $ '000

performance payments recognised as an expense during the year.

Position

Long-Term Employee Expenses

Monetary Expenses

Non-Monetary Benefits

Termination benefits are not provided for within individual contracts of employment. Contracts of employment provide only for notice periods or payment in lieu of notice on termination, regardless of the reason for termination.

12.

For the 2013-14 year, remuneration of key management personnel increased by 2.2% (2012-13: 2.2%) in accordance with Government policy.

-

3,170

-

-

4 -

-

252

8

-

267

56

-

General Manager- Economic Development Queensland

salaries, allowances and leave entitlements earned and expensed for the entire year or for that part of the year the employee occupied the specified position.


Period in Position

The following disclosures focus on the expenses incurred by the department during the respective reporting period attributable to key management positions. The amounts disclosed reflect expenses recognised in the Statement of Comprehensive Income.

Remuneration policy for the department's key management personnel is set by the Queensland Public Service Commission as provided for under the Public Service Act 2008. The remuneration and other terms of employment for the key management personnel are specified in employment contracts. The contracts may provide for other benefits including a motor vehicle allowance, and for the chief executive officer (CEO), may provide for the provision of At Risk Component payments.

236 -

-

4

22


- 4

61 -

2

27 3

non-monetary benefits consisting of provision of vehicle and car parking benefits together with fringe benefits tax applicable to the benefit.

58

548

Long-term employee benefits include amounts expensed in respect of long service leave entitlements earned.

-

269

455

6 -

1126Director-General

Post-employment benefits including amounts expensed in respect of employer superannuation benefits.

17


Acting General Manager- Economic Development QueenslandTotal

25

333

Deputy Director-General- Regional Services

336

Acting Deputy Director-General- State Development

54

Post-Employment

Expenses

487

380

302

01/07/2013 - 16/05/2014

130

589

190

1 54

178

19/05/2014 - 30/06/2014 49

01/07/2013 - 17/01/2014

19/03/2014 -30/06/2014

36 - 376

-

210

217 24

-

160

Deputy Director-General- Planning and Property

14Deputy Director-General- Government Land and Asset Management

2,683

Deputy Director-General- Major Projects Office

33

143

$ '000 $ '000 $ '000

-

21

Termination Benefits Total Expenses

66

Short-Term Employee Expenses

1 July 2013 to 30 June 2014

-

Coordinator-General

7

01/07/2013 - 19/03/2014

- 86 -


Key management personnel and remuneration expenses (continued)

(b) Remuneration expenses

(c) Performance Payments

- reporting on end of year achievement and self-assessment by each chief executive against their performance agreement/intended outcomes;-

-

- recommendations from the CEPEC to the Premier; and- the Premier’s ultimate discretion regarding whether the CEO will be paid an At Risk Component payment and, if so, how much.

The basis for performance payments expensed in the 2013-14 financial year is set out below:

No performance payments were paid or payable to other key management personal in the 2012-13 financial year.

The aggregate performance payments expensed in respect of all key management personnel are as follows:

Key Management Personnel

2

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

415

04/02/2013 - 30/06/2013

01/07/2012 - 07/04/2013

3

08/04/2013 - 30/06/2013

Deputy Director-General- Planning

-

50

235Deputy Director-General- Regional Services

1

465

10

265

$ '000

12.

85

199

4

Short-Term Employee Expenses

-

Acting Deputy Director-General- Planning and Property

-

Deputy Director-General- Major Projects Office 77

160

2,300

23

01/07/2012 - 03/08/2012

-

132

Chief Executive Officer- Growth Management Queensland

Director-General

38 - 1

-

176

11

117

43

-

74

01/07/2012 - 02/12/2012

01/02/2013 - 30/06/2013


Acting Deputy Director-General- Planning 03/12/2012 - 01/02/2013

272 152

97

243

28

4

13

- 3

52

27 182

245

118

-

-

3

498

Period in Position

190

152

5 2426

$ '000

578

Long-Term Employee Expenses

Post-Employment

Expenses

Termination Benefits

Position


Non-Monetary Benefits

Monetary Expenses

1 July 2012 to 30 June 2013

Total Expenses

Coordinator-General

$'0002014$'000

2

2,893

-

Director-General

48

110

2013

21

-

5

Public service CEOs have part of their total remuneration package placed “at risk” and paid only if they meet or exceed the agreed performance standards. The chief executive performance evaluation process comprises:

The above amounts may include situations where a Senior Executive has acted in a position which can result in an increase to the annual remuneration amount payable. There may also be instances where no amount is paid to Senior Executive for a period of time within the financial year which may result in a decrease to the annual remuneration amounts.

analysis by the Commission Chief Executive (Public Service Commission), the Under Treasurer (Queensland Treasury and Trade) and the Director-General (Department of the Premier and Cabinet) of relevant performance data; a rigorous, independent and objective assessment of CEOs performance at the end of each financial year using, amongst other things, information provided from the above two steps. This performance assessment is undertaken by a Chief Executive Performance Evaluation Committee (CEPEC);

General Manager- Economic Development Queensland

-

2

-Acting Deputy Director-General- Strategy and Governance

18 -

-

4

10

Consistent with the above mentioned timeframe and process, this payment relates to the achievement of performance criteria during 2012-13. In accordance with the terms of the performance agreement for this position, it was determined that a payment of $48,244 be awarded.

Acting Deputy Director-General- Major Projects Office

- 130-

6

149

10

19

-

Position Date Paid

189

Basis for payment

147

-14

20

Deputy Director-General- Government Land and Asset Management

04/02/2013 - 30/06/2013

Total

13/11/2013

-

25

As at the date of management certification of these financial statements, the eligibility to a performance payment for the Director-General in respect of the 2013-14 financial year had not yet been confirmed. With respect to the process to determine eligibility, recommendations are yet to be made by the Chief Executive Performance Evaluation Committee to the Premier. Therefore, any performance payment approved will be reported as an expense within 2014-15.

The remuneration package for the Director-General includes a potential performance payment of up to a maximum of $75,385. Eligibility for such a performance payment is conditional on the achievement of objectives that are documented in that position's performance agreement.

- 87 -

Department of State Development, Infrastructure and PlanningNotes to and forming part of the financial statements 2013-14

Supplies and servicesConsultants and contractors *Property and building expensesProject development costsTransportTravel and hospitalityComputer/information technologyTelecommunicationsShared service provider feeMarketing and public relationsAgent's commissionsOther Total supplies and services

* Includes expenditure for Commonwealth Games venues of $36.07 million (2012-13: $7.28 million)

Grants and subsidiesGrants:QuQueensland and local governmentIndIndustryUnUniversitiesContributionsTotal grants and subsidies

Depreciation and amortisationDepreciation and amortisation were incurred in respect of:

BuildingsInfrastructureMajor plant and equipmentPlant and equipmentSoftware purchasedSoftware internally generated

Total depreciation and amortisation

Impairment lossesLandTrade receivablesTotal impairment losses

Revaluation decrementBuildingsLandLand inventory written downTotal revaluation decrements

Finance/borrowing costsInterestAdministration costsTotal finance/borrowing costs

The department does not capitalise finance/borrowing costs. Interest on loans are capitalised by controlled entities but expensed on consolidation.

Other expensesExternal audit fees (1)

Insurance premiums - QGIFInsurance premiums - general (2)

Transfer of non-current physical assets to local councilsNet losses from disposal of property, plant and equipment Net losses from disposal of intangible assetsSponsorshipsSpecial payments:

ExEx-gratia payments (3)

Taxes - land, rates and stamp dutyDonations and giftsOtherTotal other expenses(1)

(2)

(3)

1,879

239 797

1,778

7,274

2,4263,985

7,08418,003

1,762

3,177

22,837

-

14,222

3,684

10

10,654

5,8263,589

3,955

2,554

6,853

4,853

114,371

382

12,987

2013

15.

1,601

14,285

1,481

$'000

18.

16.

17.

1,452

1,3251,242

1,530

14.

13.

5,315

4,818

3,350

1,738

-

16,542

20

27

69,471

19.

222

3,955

14,107

33 12

522

141

2,209189

286

86

27,529

The asset revaluation surplus represents the net effect of upward and downward valuations of assets to fair value. The decrement, not being a reversal of a previous revaluation increment in respect of the same class of assets, has been recognised as an expense in the Statement of Comprehensive Income.

20,446

249254

11,622

11,297

73,551

26,986

2,077

4,408

-

32

7,661

2,025

8,251

20,446

$'000

1,067

23,934

2014

3,081

7,796

17,614

10,969587

7,448

9,883

1,691

1,530

1,885

337

383

31,281

-

20,085

21

324

402

16,935

-590

Total audit fees paid to the Queensland Audit Office relating to the 2013-14 financial year statements are estimated at $317,000 (2012-13: $275,000). There are no non- audit services included in this amount.The Under Treasurer's approval has been obtained for entering into insurance contracts.The department made ex-gratia payments to affected landholders after the Queensland Government and Surat Basin Rail Joint Venture reached a mutual agreement to end an exclusive mandate to develop a rail line from the proposed Wandoan thermal coal mine to Banana.The payments were made in recognition of the inconvenience and disruption to the landholders for dealing with uncertainty for up to seven years.

- 88 -


Cash and cash equivalentsCash at bankImprest accountsTotal cash and cash equivalents

ReceivablesCurrentTrade debtorsLess: allowance for impairment loss

Loans and advances receivableGST input tax credits receivableGST payable

Appropriation revenue for services receivable Equity injection receivableAnnual leave reimbursementsLong service leave reimbursementsFinance lease debtorsOperating lease debtorsInterest receivableOtherTotal current receivables

Non-currentTrade debtorsLoans and advances receivableFinance lease debtorsTotal non-current receivables

Refer to note 43(c) Financial Instruments (Credit risk exposure) for an analysis of movements in the allowance for impairment loss.

InventoriesLand held for saleTotal inventories

Other assetsCurrentPrepaymentsSecurity depositsOtherTotal other current assets

Non-currentPrepaymentsTotal other non-current assets

Non-current assets classified as held for saleLandBuildingsTotal non-current assets classified as held for sale

Mary Valley propertiesTownsville Eastern Access CorridorBrisbane CBD -South East Queensland Water Grid project

$'000Land

11,433

-

1,975

Note 2(l) explains the accounting treatment and measurement of non-current assets held for sale. For fair value information, refer to note 27 and 2(r).

11,433

Buildings

26,000 26,000

797

20,154

72,469

$'000 $'000

425,443

16,389

10,467

1,97514,96659,957

12,035

8,5241,97510,467

1,255

22.

18,89957,982

-

12,035

814

23.

-

57,982

6,549

24.

59,957

Total$'000

14,966

805

454,417425,443

1,158

20.

21.

63,027

Departmental bank accounts, excluding EDQ which operates on a commercial basis, refer to note 2(b), are grouped within the whole-of-Government set-off arrangement with the Queensland Treasury Corporation and do not earn interest on surplus funds. Interest earned on the aggregate set-off arrangement balance accrues to the Consolidated Fund.

(861)

60,217

-

19,479

66,061

(1,223)

(3,034)

663

(4,451)

926

(1,717)574

5,954

2014 2013

3,658 5,062

8

1,320

60,226

2884,941

28,359

The Under Treasurer has approved an overdraft limit of $50 million for the department's controlled and administered bank account. There is no overdraft interest charged on this facility. This facility was undrawn at 30 June and is available for use in the next reporting period.

9

1,312618

903

1,750

206

203,302

203,294

8,225

454,417

11

-

8

20,047

-

(2,542)

58

3,818-

710188

2,734

783

1,941

14,883

7,364

$'000

- 89 -


Intangible assetsSoftware purchasedAt At costLeLess: accumulated amortisationTotal software purchased

Software internally generatedAt At cost

LeLess: accumulated amortisation

LeLess: accumulated impairment lossesTotal software internally generated

Software work in progressAt At cost

EasementsAt At cost

Total intangible assets

150

20

$'000 $'000

(140)

(2,465)

4,304

(3,053)

6,262

433

7,260

(2,693)

1,514 744

6,814

1,745

(3,053)

25.

150

4,466

2013

(130)

2014

6,422

10

- 90 -


25. Intangible assets (continued)

Intangible assets reconciliation

Notes

2014 2013 2014 2013 2014 2013 2014 2013 2014 2013$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

20 47 745 1,205 1,745 741 4,304 9,208 6,814 11,201Prior year machinery-of-Government adjustments - - - (58) - - - - - (58)Acquisitions - - - - 283 1,004 452 750 735 1,754Disposals - - (239) - - - (291) (5,836) (530) (5,836)Transfers from property, plant and equipment - - - - - - - 182 - 182Transfers between asset classes - - 1,595 - (1,595) - - - - -Amortisation (1) 15 (10) (27) (587) (402) - - - - (597) (429)

10 20 1,514 745 433 1,745 4,466 4,304 6,422 6,814

Carrying amount at 1 July

(1) Amortisation of intangible assets is included in the line item 'Depreciation and amortisation' in the Statement of Comprehensive Income. All intangible assets of the department, excluding easements and goodwill, have finite useful lives and are amortised on a straight-line basis (refer note 2(s)).No intangible assets have been classified as held for sale or form part of a disposal group held for sale. All assets have been tested for impairment.

Carrying amount at 30 June

TotalSoftware purchased Software internally Work in progress Easements

- 91 -


Property, plant and equipmentNon-current

LandAt At fair value

At costLeLess: accumulated impairment lossesTotal land

BuildingsAt At fair valueLeLess: accumulated depreciationLeLess: accumulated impairment lossesTotal buildings

Heritage and cultural assetsAt At fair valueLeLess: accumulated impairment lossesTotal heritage and cultural assets

InfrastructureAt At fair valueLeLess: accumulated depreciationTotal infrastructure

Major plant and equipmentAt At fair valueLeLess: accumulated depreciationTotal major plant and equipment

Plant and equipmentAt At costLeLess: accumulated depreciationLeLess: accumulated impairment lossesTotal plant and equipment

Capital work in progressAt At costTotal capital work in progress

Total property, plant and equipment

Property, plant and equipmentAt costAt fair valueLess: accumulated depreciationLess: accumulated impairment losses

Total non-current property, plant and equipment

Fully impaired/depreciated assets still in use

Buildings (1)

Infrastructure (1)

Plant and equipment (1)

Easements- intangibles (1)

Total fully depreciated assets

(1)

8,861-

486,897

(20,817)

(7,661)

$'000

478,036

(800)

(41,556)148,082

1,189

(18,485)

(38,191)

100

624

824

15,748

(80,932)

16,571

115

15,895

617,811

3,698

(20,380)

(6,369)

149,820

41,686

(2,908)790

113,599

1,103

6,886

387,572

90,780

790

-

(497)

395,233

3,698

1,339

500

745,519

814,084

(800)

617,811(4,205)

500

(7,020)

8,579

111,629

60,070

(89,773)703,555

745,518

(17,887)

824

14,706

(11,866)

-603

The department has buildings, infrastructure and plant and equipment assets with an original cost of $1.103 million that have a written down value of zero that are still being used in the provision of services.

95,114

(2,908)

111,160

24,068

45,382

(497)

26.

20132014$'000

-

106,526

1,189

- 92 -


26. Property, plant and equipment (continued)

Property, plant and equipment reconciliation

Notes

2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Carrying amount at 1 July 486,897 526,391 41,686 47,410 790 1,003 95,114 93,398 111,629 111,321 8,580 8,621 824 8,153 745,518 796,297Prior year machinery-of-Government adjustments - - - - - - - - - - - 1,009 - (25) - 984Acquisitions through machinery-of-Government change - 7,691 - 164 - - - - - - - 412 - - - 8,267Acquisitions 6,336 8,426 238 446 - - - 126 - - 27 369 7,904 676 14,506 10,041Disposals (14,037) (21,464) (7,720) (3,259) - - - - - - (21) (952) - - (21,778) (25,675)Assets reclassified as held for sale 24 (88,439) (2,405) (16,516) (1,255) - - - - - - - - - - (104,955) (3,660)Transfers to/from other Queensland Government entities 25,704 - (99) - - - - - - - (7) - - - 25,598 -Transfer (781) (14,142) 7,444 7,460 - (298) (113) (12) - - 193 812 (7,539) (7,979) (795) (14,160)Donations - - - (7,448) - - - - - - - - - - - (7,448)Revaluations prior to machinery-of-Government change - 15 - - - - - - - - - - - - - 15Gain on reversal of revaluation decrement 10 - - 1,111 754 - - - - - - - - - - 1,111 754Revaluation increments/decrement 35 - - - - - 85 (1,795) 3,628 (1,120) 4,262 - - - - (2,914) 7,975Revaluation decrements 17 (20,446) (17,614) - (32) - - - - - - - - - - (20,446) (17,646)Impairment recognised in operating surplus/(deficit) 16 (7,661) - - - - - - - - - - - - - (7,661) -Depreciation 15 - - (2,077) (2,554) - - (2,426) (2,024) (3,985) (3,955) (1,885) (1,691) - - (10,372) (10,225)

Carrying amount at 30 June 387,572 486,897 24,068 41,686 790 790 90,780 95,114 106,525 111,629 6,888 8,580 1,189 824 617,810 745,518

Land Buildings Heritage and cultural assets

Infrastructure Major plant and equipment

Plant and equipment Capital work in progress

Total

- 93 -


Fair value

The Coordinator-General determines the compensation amount paid to land owners, based on a market valuation, as described above plus other compensation amounts where appropriate. The land is recorded in the Held for sale class until all land required for the relevant critical infrastructure asset is resumed, after which the land is transferred at compensation cost to relevant entities. These entities progress the critical infrastructure projects as agreed with the Coordinator-General.

In relation to the portion of properties that were encumbered by long-term leases, the fair value also included an income based approach by discounting the income stream and deferment of the capital value until the expiry of the lease. Management has applied a discount rate ranging between 5% and 10% driven by specific risk characteristics of each property. The higher the risk associated with the property, the higher the discount rate applied. Properties are generally leased below the market rate; therefore, there is little risk of not obtaining income. The deferment of capital value was assessed by means of calculating the present value of the land area encumbered, over the remaining lease term. Unencumbered land is added to the present value of income and deferred capital value calculated above to determine the total property value, before apportioning to land and buildings. There were no changes to the valuation technique from the prior year.

The last specific appraisals were performed in the 2010-11 financial year. Properties valued under the market approach have been classified as level 2 in accordance with the fair value hierarchy as stated in note 2(r). Encumbered properties valued under the income approach have been classified as level 3, in accordance with the fair value hierarchy as stated in note 2(r) as these utilise unobservable inputs such as contractual cash flows and risk adjusted discount rates that significantly impact on the valuation.

Held for sale assets consist of assets that management has determined are available for immediate sale in their present condition and their sale is probable. These assets are measured at the lower of the assets' carrying amounts and their fair values less costs to sell. Such assets are no longer amortised or depreciated upon being classified as held for sale.

Consistent with the 2012-13 valuation approach, fair values of Mary Valley properties in 2013-14 were determined by Taylor Byrne, certified valuers using historical sales information on comparable property sales in the Gympie Regional Council area. Property sales were considered which transacted in the open market including residential, rural residential, small rural and large rural land categories, to allow an index to be derived and applied to the properties based on sales by category.

Mary Valley properties The Mary Valley Economic Development Strategy was introduced in July 2012 following large scale land acquisition related to the proposed Traveston Crossing Dam project. The strategy objective is to maximise economic development opportunities across the whole of the Mary Valley, revitalising the Valley by providing a sound investment platform and restoring community stability. The divestment program is aligned to support economic development by ensuring economic units and other properties are presented to market as soon as possible.

As part of the strategy, the following targeted economic development and divestment packages are currently being actioned: - At 30 June 2014 there were 33 vacant properties in the held for sale class. - A tenant Purchase Scheme provides an opportunity for sitting tenants to purchase the property in which they reside. - Investigations into economic development opportunities continue for agriculture, horticulture, tourism and other commercial enterprises.

Management undertook an assessment of the Mary Valley properties and determined that a combination of both based indexation methods and an income based approach be used to obtain the fair value of these properties.

27.The department has financial assets and liabilities which are not measured at fair value. These include Trade receivable and Payables, Interest bearing liabilities and Loans receivable.

The department also has land and building assets measured at fair value on a non-recurring basis as a result of being classified as assets Held for sale. A description of the valuation techniques and the inputs used to determine the fair value of this land is included below.

Loans receivableThe department has loans receivable from the Commonwealth Scientific and Industrial Research Organisation (CSIRO) disclosed in note 21. Notional interest is absorbed by the State based on the Queensland Treasury Corporation’s floating Debt Pool Rate. The carrying value is assumed to approximate market value.

The information below categorises fair value measurements as either level 2 or level 3 in accordance with AASB 13 Fair Value Measurement. The department does not have any assets or liabilities measured at fair value which meet the criteria for categorisation as level 1.

The fair values of assets are determined using valuation techniques which maximise the use of observable data, where it is available, and minimise the use of entity specific estimates. If all significant inputs required to fair value an asset are observable, the asset is included in level 2. If one or more of the significant inputs is based on unobservable market data, the asset is included in level 3. This is the case for the department’s infrastructure assets, which are of a specialist nature for which there is no active market for similar or identical assets. In addition the department's Mary Valley encumbered land and buildings and Coordinator-General resumed land, recorded in the Non-current assets classified as held for sale class are also included in level 3. These assets are valued using a combination of observable and unobservable inputs.

As stated in note 2(q) and in accordance with Queensland Treasury and Trade's Non-Current Asset Policy for the Queensland Public Sector a specific appraisal is performed on all assets at least once every five years.

Trade receivables and payablesThe carrying amounts of Trade receivables and Trade payables are assumed to approximate their fair values due to their short-term nature.

Interest bearing liabilities

Non-current assets classified as held for sale

Upon determination of the asset transfer to the Held for sale class a market valuation is undertaken. Determination of fair value is based on comparing selling prices to similar type assets (i.e. comparable properties in the same area, location and size) in an active market. The Held for sale class consists of Mary Valley properties, properties resumed by the Coordinator-General and other properties owned by the department that are held for sale.

These valuations are categorised as level 3, in accordance with the fair value hierarchy as stated in note 2(r) due to the significant impact of other compensation agreements in addition to the market valuations. These valuations are considered non-recurrent.

The department holds debt payable to the Queensland Treasury Corporation as described in note 31. The interest on these facilities is at the prevailing market rate. As such the carrying value is assumed to approximate market value.

The Coordinator-General facilitates infrastructure projects that underpin Queensland’s economic development. Land is resumed by the Coordinator-General under the State Development and Public Works Organisation Act 1971- the Acquisition of Land Act 1967 sets out the acquisition process. Compulsory acquired land recorded in Non-current assets held for sale class, consists of land acquired for water and interconnector pipelines, recycled water and access corridors.

- 94 -


Fair value (continued)

- Producer Price Indices, Output of the Professional, Scientific and Technical Services Industries; and

27.

During the period, management identified contamination and flooding on certain properties. As a result certain clean-up costs and adjustments have been included in the valuation of these properties resulting in impairment to the value of approximately of $7.7 million. Due to significant unobservable inputs used to calculate impairment, these valuations were categorised as level 3 in accordance with the fair value hierarchy as stated in note 2(r).

Heritage buildings were impaired in the 2011-12 financial year, due to structural issues. Our current period assessment has determined no changes in the impaired values of these properties.

Specific appraisals were performed for both the land and buildings at 30 June 2012 and land again as at 30 June2014. The appraisals were performed by the State Valuation Service, certified valuers, no movement in fair value was identified for land in the 2013-14 year.

The department holds certain land and building property assets for the purpose of earning rentals and/or capital appreciation. The value of these assets is initially recognised at cost including transaction costs for arm’s length transactions or at fair value where the assets were acquired for nominal consideration.

Infrastructure and major plant and equipment Infrastructure and major plant and equipment assets located at the Gladstone Port and Jetty were appraised as at 30 June 2014 by AssetVal Pty Ltd, a certified valuer. Due to the specialised nature of the assets and lack of observable market data the basis of valuation is depreciated replacement cost.

Depreciated replacement cost reflects the current cost that would be required to replace the service capacity of the asset as it currently exists. This is reflective of the cost that would be incurred by a market participant to acquire or construct a substitute asset adjusted for comparable utility and obsolescence.

Relevant indices include:- Producer Price Indices, Output of the Construction Industries;

Due to the use of market observable prices from similar assets, land has been categorised as level 2 in accordance with the fair value hierarchy as stated in note 2(r).

Specific appraisals of buildings were performed for certain regions in the current year. The remainder of the buildings in the portfolio were revalued using discounted cash flow on income with the oldest specific appraisals of these properties being performed in 2009-10.

Buildings valued with the use of market observable prices from similar assets (i.e. comparable properties in the same area, location and size) are categorised as level 2 in accordance with the fair value hierarchy as stated in note 2(r). Those properties valued using the income approach are included in level 3 in accordance with the fair value hierarchy as stated in note 2(r), as these include contract specific inputs that are not observable in the market place.

Due to the use of significant unobservable inputs, in particular the replacement cost, useful life, remaining life and in some cases, residual value. These valuations are categorised as level 3 in accordance with the fair value hierarchy as stated in note 2(r). There were no changes to the valuation techniques from the prior year.

BuildingsThe department holds various residential and non-residential properties, including cultural and heritage building assets.

- Producer Price Indices, Output of the Manufacturing Industries;- Producer Price Indices, Input to the Coal Mining Industries;

- Average Diesel Terminal Gate Prices

The values assigned to the land and buildings at Northshore Hamilton were based on their listed Brisbane City Council zoning (primarily port or industrial use) and do not reflect the potential higher use under the existing development scheme for this precinct.

These properties are valued with the use of market observable prices from similar assets and are categorised as level 2 in accordance with the fair value hierarchy as stated in note 2(r) .

Determination of fair value is based on comparing selling prices to similar type assets (i.e. comparable properties in the same area, location and size) in an active market. If there is no active market, alternative valuation methods are used, such as sale prices in less active markets or income approach is used. There were no changes to the valuation technique from the prior year.

Investment property

Land (except Mary Valley)The department holds land property throughout various Queensland regions. These properties are held for various purposes and include: - Future economic development opportunities - Held to meet a specific community or economic need- Purchased for re-zoning purposes

The current replacement cost of the assets was determined using several valuation techniques, namely direct correspondence with suppliers to get a direct quoted price for an asset, and using relevant publicly available inflationary indices applied to historical cost. The replacement cost includes all direct and indirect costs associated with building a piece of infrastructure or major plant and equipment including material, plant hire, labour, transport design, commissioning, management, administration, preliminary studies and contingency. Due to the significant individual value of the ship loader and unloader, and the ability of suppliers to be able to quote a replacement cost, this was the most accurate method available to determine the cost of the items. The replacement cost used in the fair value calculations is directly quoted by the suppliers. As most of the other assets are of a unique nature in design, in combination with the relatively young age, the most appropriate method available to determine the replacement cost is the indexation of historical information. This may be the original construction cost, or it may be other available relevant information such as the cost of the extension to the wharf or construction costs of other similar or relevant projects.

For those properties subject to revaluation by indexation, the most recent specific appraisal were performed in the 2011-12 financial year by the State Valuation Service, a certified valuers, with assets located in certain regions appraised in the current period. Fair value for land is determined by establishing its market value by reference to observable prices in an active market or recent market transactions using direct comparison to the sales history of similar properties based on location, area, access and typography. For some land assets, consideration was given to current zoning regulations that resulted in adverse adjustments to the land values. An indexation method was applied to properties where a specific appraisal was not performed. The index was derived from historical market information on comparable property sales.

Fair value for buildings is determined by establishing its market value by reference to observable prices in an active market or recent market transactions using direct comparison to the sales history of similar properties. The department is also lessor to rental agreements on various properties. Due to current zoning regulations the valuation of some buildings are not considered to reflect the highest and best use of the land and building property as a whole. As such these properties have been valued using the income approach by discounting the cash flow from contractual lease payments. The cash flows are discounted at a rate consistent with the Queensland Treasury Corporation's zero coupon rate. There were no changes to the valuation techniques from the prior year.

- 95 -


Fair value (continued)

Opening balance 30 June 2013AcquisitionsDepreciationImpairment of assetsReclassification to Held for saleTransfers between asset classesRevaluation increments/(decrements) recognised in operating resultClosing balance 30 June 2014

Level 3 valuation inputs and relationship to fair valueThe following table summarises the quantitative information about the significant unobservable inputs used in level 3 fair value measurements.

Valuation processes

Land Contamination clean-up Any increase in clean-up costs will have a decrease in the fair value recorded on the underlying assets

An increase in the discount rate results in a decrease in fair value

Lease cash flows Contractually determined on an individual property basis

An increase in contractual cash flows results in an increase in fair value and vice versa

5,795 90,780 106,526

There were no gains/ (losses) in operating results including unrealised gains/(losses) for assets still held at the end of the reporting period.

Infrastructure and major plant and equipment

Land - Mary Valley encumbered properties

Buildings valued under the income approach

- -

27.

- (113) -459 (1,795) (1,120)

Range or inputsSignificant Unobservable Input Relationship of unobservable input to fair value

Description

Replacement Cost 10% increase or decrease

-

110

$19.7 million movement in fair value

Useful life 10% increase or decrease $3.8 million movement in fair value

(3,112)

Remaining useful life Increase or decrease by 1 year $6.2 million movement in fair value

Residual value factor 0% - 20% An increase in the residual value factor results in an increase in fair value

Contractual cash flows Unique to each property An increase in cash flows results in an increase in fair value

Discount rate 5% - 10%

Discount rate 3% to 6% A higher discount rate results in a decrease in fair value

The department’s valuation policies and procedures are overseen by the Audit and Risk and Management Committee and set out by the Chief Finance Officer. They are reviewed annually taking into consideration an analysis of movement in fair value and other relevant information. The department’s current policy for the valuation of Property, plant and equipment is set out in note 2(q).

Buildings Infrastructure Major plant & equipment

$'000 $'000 $'0006,364 95,114 111,630

-- 34,524 25,434

- - 2,700Buildings income approachInfrastructure 90,780

- 108,620 -

(540) (2,426) (3,985)

Mary Valley land encumberedMary Valley buildings unencumberedMary Valley buildings encumberedLand

Transfers occurred between land and building class for Mary Valley encumbered properties from level 3 to Non-current assets classified as held for sale class, level 2, during the 2013-14 financial year. The following table presents changes in level 3 for the period ended 2014.

(598) -

2,011

Transfers between levels

4,151 -- 499,360 222,357

34,524

- 76,465 -

Level 1$'000

Investment property landInvestment property buildingsTotal recurring

Total -

Non-recurring Fair Value Measurements

The table below presents the department’s assets and liabilities measured and recognised at fair value at 30 June 2014. Comparative information has not been provided as allowed by the transitional provisions of AASB 13 Fair Value Measurement.

$'000$'000

-

There were no transfers between level 1 and 2 or level 2 and 3 within the same class for recurring fair value measurements. The department's policy is to recognise transfers into and out of fair value hierarchy levels at the same class as at the end of the reporting period.

Fair value measurement using significant unobservable inputs (Level 3)

-

- 1,908 -Buildings market approach

Total non-recurring

$'00027,257

533,883 247,791

Major plant & equipment - - 106,526

- -

-

Other assets Held for sale

-

1,200- 291,851

18,056- 16,365 -- - 3,095

Level 2 Level 3Recurring Fair Value MeasurementsMary Valley land unencumbered

- - -(7,661)

Coordinator-General land Held for sale - - 25,434

Land

-761

19,256

- 96 -


Investment propertyLandBuildingsTotal

Not later than one yearLater than one year and not later than five yearsGreater than five yearsTotal

Investment property reconciliation

Carrying amount at 1 JulyTransfer due to machinery-of-Government changeTransfer from inventoryCarrying amount at 30 June

Direct operating expenses primarily for repairs and maintenance on property that did generate rental income for the period were $820,000 (2012-13:$90,000).

Income tax equivalent

(a) Income tax expenseCurrent taxDeferred tax

Income tax equivalent expense

(c) Deferred tax equivalent asset Non-current assets - deferred tax equivalent asset The balance comprises temporary differences attributed to:Annual leave payableAllowance for impairment lossAccrued expensesAccrued audit feesLong services leave payableWritten down value of other capitalised expensesBuilding accumulated depreciationBuilding accumulated impairment/devaluationCapital asset impairmentDeferred fee incomeBalance as at 30 June

(d) Income tax payableCurrent liabilities - income tax payableBalance at the beginning of the yearTransfer through restructureIncome tax equivalent paidExpensed to comprehensive incomePrior period adjustmentBalance as at 30 June

8,999

28.

-

Land

185

29.

Buildings

-4,151

4,151

2014

6,345

2,379

$'000$'000

3,452

No contingent rentals were recognised during the current reporting period.

There are no restrictions on the realisability of investment property or remittance of income and proceeds of disposal.

Direct operating expenses primarily for repairs and maintenance on property that did not generate rental income for the period were $280,000 (2012-13:$270,000).

108,620

(13,909)

$'000

Entertainment

(b) Numeric reconciliation of income tax equivalent expense to prima facie tax payable

112,771

(174)

Prior year interest

(2,379)

-

304

The future minimum lease payments receivable under non-cancellable operating leases classified as investment property are:

108,240

169

$'000

--

-

112,7714,151

-

(1,580)

3,392

4,151

2013$'000

2014

108,620

4,151

2014

1,464

380

2013

108,620

(838)

108,620

2014

1,9281,282

-18,844

-

(19,530)7,925

- 1

11203

3,994

-

(364)

- 9

-

4,095

Rental income from investment property of $2.27million (2012-13: $630,000) is recognised in the Statement of Comprehensive Income.

$'000

3,198

2013

-

38,494Profit before income tax expenseTax expense at the Australian tax rate of 30% (2012-13: 30%)

4,151

The department does not have any contractual obligations to purchase, construct or develop investment property or for repairs, maintenance or enhancements.

(10,711)

2013

(7,925)

13,909

2,628

108,620

Tax effect of amounts which are not deducible (assessable) in calculating taxable income:

21,834 10,305

$'000$'000

11,5485,4631,639

1,090

3,994

For fair value information, refer to note 27 and note 2(r).

71429

15

-

-

1,58010,711

3,0578,193

376

686

10,305

Other


497

- 97 -


Income tax equivalent (continued)(e) Deferred tax equivalent liabilityNon-current liabilities - Deferred tax equivalent liabilitiesThe balance comprises temporary differences attributable to:Accrued revenueLand revaluationsInventoriesInvestment property, plant and equipmentNet deferred tax equivalent liabilities

PayablesCurrentTrade creditorsTaxes, fees and fines payableAccrued expensesAppropriation revenue payable -Equity withdrawal payable -Other Total current payables

Interest-bearing liabilitiesCurrentQueensland Treasury Corporation borrowingsTotal interest-bearing liabilities

Non-currentQueensland Treasury Corporation borrowingsTotal interest-bearing liabilities

No assets have been pledged as security for any liabilities.

There have been no defaults or breaches of the loan agreement during the reporting period.

Accrued employee benefitsCurrentSalaries and wages outstandingAnnual leave levy payableLong service leave levy payableTotal current accrued employee benefits

In addition, there was an accrual of one day for wages and salaries in 2013-14, where there was no accrual required for the 2012-13 financial year.

Other liabilitiesCurrentUnearned revenueDeposits held LoanSecurity depositsTendering depositsOtherTotal current other liabilities

Provisions


30,000

29.

2014 2013$'000 $'000

500 -

Taxes – land, rates and stamp duty

33.

18,272

2,148

2,201

Total current provisions

2,971

21,455

151,823

26,788

CurrentBalance at 1 July

36,084

34.

116,110

Land acquisition claims

32

422

44,996

35

31,335

325

Movements in provisions

Restatement of provision(8,483)

1,475

1,677

Total non-current provisions

Additional provision recognised

(4,617)Reclassification from non-current provision

33,860

(8,893)

51,853

1,902

151,823

348

23,673

All borrowings are in Australian dollars. No interest has been capitalised during the current or comparative reporting period. Repayment dates vary from June 2014 to October 2027. For one loan, principal and interest repayments were made quarterly in arrears at the rate of 5.84% for all other loans, repayments are based on the timing of receipts from land sales, rates ranging from 2.92% to 5.11%.

17

116,110

26,108

12

21,455

Non-current

Reduction in provision as a result of payments

21,312

3,200


(4,224)

5,5903,226

5,329

8,858

402

716

54,356

18,272

21,365

21,455

29,401

1,698

45,765

82,31278,307

11

8

9,135

3,979

330

30.

-

59,145

29,401

51,369

2,028

47,057

12,17112,171

3,226

189 -

31.

Current

32.

42,820

5,590

13,09315,010

14,284

The rise in accrued employee benefits was due to the overall increase in employee full time equivalent numbers.

As it is the intention of the department to hold its borrowings for the full term, no fair value adjustment is made to the carrying value of the borrowings.

3,200


- 98 -


Provisions (continued)



Provision for land acquisition claims

Provision for taxes

Asset revaluation surplus

Balance as at 1 July 2012Revaluation incrementsRevaluation decrementsBalance as at 30 June 2013

Balance as at 1 July 2013Revaluation incrementsRevaluation decrementsBalance as at 30 June 2014

(1,795) (1,120) - (2,914)17,157 9,633 85 26,874

- - - -18,952 10,752 85 29,789

18,952 10,752 85 29,789- - - -

2013$'000

Heritage and cultural assets

Total

2014

Balance at 1 July -


1,119-

Reduction in provision as a result of payments (5,524) (16,180)

Current

Restatement of provision

Reclassification from non-current provision

3,37520,243 17,990

Taxes – land, rates and stamp duty

Transfer through machinery-of-Government

$'000

Balance at 1 July

34.

35.Major plant and

equipmentInfrastructure

$'000 $'000 $'000 $'00015,324 6,490 -

Non-current

21,8143,628 4,262 85 7,975

36,084

4,224

5,590

(2,210)

201(36)

-1,402

21,365 16,180


The department acquires land through compulsory acquisition in accordance with the Acquisition of Land Act 1967 using the Coordinator-General's powers as contained in the State Development and Public Works Organisation Act 1971 . Compensation is payable for land acquired in accordance with this legislation when agreement is reached between the land owner and the Coordinator-General through the execution of a Section 15 Compensation Agreement. Prior to the execution of the section 15 Compensation Agreement the department recognises a provision to account for compensation it expects to pay for all land resumptions.

(1,475)3,226 5,590

Reduction in provision as a result of payments

21,365

Economic Development Queensland is required under the Queensland Treasury and Trade's Commercialisation of Government Business Activities in Queensland Policy Framework to recognise tax equivalents for stamp duty, land tax and local government rates. Calculation and recognition of tax equivalents ensures Economic Development Queensland is not advantaged relative to its private sector counterparts. Payments are required to be made to the Queensland Government's Consolidated Fund and are determined on a self-assessment basis giving proper regard to current rates and charges applicable.

- 99 -


36. Restructuring of administrative arrangements

There was no restructuring of administrative arrangements in 2013-14.

Net Total

Urban Land Development

Authority (1)

Local Government,

Community Recovery and Resilience (2)

Agriculture, Fisheries and

Forestry (2)

Natural Resources and

Mines (2)

Tourism, Major Events, Small

Business and the Commonwealth

Games (2)

Education, Training and

Employment (2)

Queensland Treasury and

Trade (2)

2013 2013 2013 2013 2013 2013 2013$ '000 $ '000 $ '000 $ '000 $ '000 $ '000 $ '000 $ '000

Current assetsCash and cash equivalents 1,726 - - - - - 62 1,664Receivables 20,601 - - - - - - 20,601Inventories 65,304 - - - - - - 65,304Other assets 197 - - - - - - 197

Total current assets 87,828 - - - - - 62 87,766

Non-current assetsInventories 111,906 - - - - - - 111,906Property, plant and equipment 8,267 (41) 1,032 (7) 2 1 - 7,198Intangible assets - 17 - - - - - 17Investment property 112,391 - - - - - - 112,391Deferred tax 8,508 - - - - - - 8,508

Total non-current assets 241,072 (24) 1,032 (7) 2 1 - 240,020

Total assets 328,900 (24) 1,032 (7) 2 1 62 327,786

Current liabilitiesPayables 46,622 - - - - - - 46,622Accrued employee benefits 882 - - - - - - 882Interest-bearing liabilities 9,520 - - - - - - 9,520Provisions 5,755 - - - - - - 5,755

Total current liabilities 62,779 - - - - - - 62,779

Non-current liabilitiesPayables 5,785 - - - - - - 5,785Interest-bearing liabilities 67,375 - - - - - - 67,375Deferred tax 30,068 - - - - - - 30,068

Total non-current liabilities 103,228 - - - - - - 103,228

Total liabilities 166,007 - - - - - - 166,007

Net assets 162,893 (24) 1,032 (7) 2 1 62 161,779

(1)

(2)

Transferred OutTransferred in

As a result of the creation of the Economic Development Act 2012 the former Urban Land Development Authority was abolished and became part of the department as a commercialised business unit, effective from 1 February 2013. Economic Development Queensland combines the former commercialised Property Services Group and former statutory authority the Urban Land Development Authority. The net assets

transferred into the department are listed above.

-

During 2012-13 an analysis of the prior period machinery-of-Government was undertaken and some adjustments were identified and are detailed above. - 100 -


Jointly controlled operations

The department's interest in the operation is included in the Statement of Financial Position under the following classifications:

CashReceivablesInventoriesPayablesNet assets

Reconciliation of operating result to net cash from operating activitiesOperating surplus/(deficit)

Non-cash items:Depreciation and amortisation expenseNet losses on disposal of property, plant and equipment and intangible assetsImpairment lossesImpairment loss reversals- receivablesRevaluation decrementsReversal of revaluation decrementIncome tax equivalent expense/(benefit)Non-current assets transferred outOther non-cash items

Change in assets and liabilities:(Increase)/decrease in appropriation revenue for services receivable(Increase)/decrease in trade receivables(Increase)/decrease in inventories(Increase)/decrease in other assetsIncrease/(decrease) in payablesIncrease/(decrease) in accrued employee benefitsIncrease/(decrease) in other liabilitiesIncrease/(decrease) in unearned revenueIncrease/(decrease) in provisions(Increase)/decrease in GST input tax credits receivableIncrease/(decrease) in GST payableNet cash from operating activities

Non-cash financing and investing activities

Assets and liabilities received or transferred by the department as a result of machinery-of-Government changes as described in notes 2(b), (n) and (af) are set out in note 36.

Commitments for expenditure(a) Non-cancellable operating lease Commitments under operating leases at the reporting date are inclusive of anticipated GST and are payable as follows:

. Not later than one year

. Later than one year and not later than five years

. Later than five yearsTotal non-cancellable operating lease commitments

Capital works in progressLand inventory

. Not later than one year

. Later than one year and not later than five years

. Later than five yearsTotal capital expenditure commitments

The department holds a 50% interest in a jointly controlled operation, Woodlands Andergrove, with Mackay Regional Council to develop residential land within the Andergrove Priority Development Area. These transactions form part of the revenues and expenses listed in the Statement of Comprehensive Income as required by AASB 131 Interests in Joint Ventures .

3,694

$'000

9,975

61,218

37.

$'000

2622,381

(568)2,840

40.

(5,548)

(32)

38.

5,436

39.

3,638

900

3,194

2013$'000

73,948

37,748

301

6,676

14,702(1,780)

(27,392)947

The department has non-cancellable operating leases relating to office accommodation, storage facilities and car park space. Lease payments are generally fixed, but with inflation escalation clauses on which contingent rentals are determined. Where it is reasonably certain that the renewal options will be exercised, the lease commitment includes the extended option period.

2014

286

(19,511) (14,783)

361

39,771

151,63532

5191,530

(71)

802

-

(754)11,180

41,317

10,654

211

(2,391)

21,501

(11,254)

1,824

5,147

41,317

$'000

574

7

10,9691,421

4,332

15,060

10,232

30,702

(6,815)

3,092

2014

23,050

7,294

Assets and liabilities received or donated/transferred by the department and recognised as revenues and expenses, are set out in notes 7 and 19 respectively.

(526)

1,546

35,248

72,621

8,251

20,301

1,907

2013

3,772

1,327

(b) Capital expenditure commitments

3,208

27,529

73,948

(1,111)

7,448

20,446

Material classes of capital expenditure commitments inclusive of anticipated GST, contracted for at the reporting date but not recognised in the accounts are payable as follows:

(1,477)

64,859 (3,219)

10,495

- 101 -


Commitments for expenditure (continued)(c) Grants and subsidies expenditure commitments

Payable. Not later than one year. Later than one year and not later than five years. Later than five years

Total grants and subsidies expenditure commitments

(d) Other expenditure commitments

Payable:. Not later than one year. Later than one year and not later than five years

Total other expenditure commitments

Contingencies(a) Guarantees and undertakings

The total value of bank guarantees held for these projects as at 30 June 2014 is $28.155 million (2012-13 was $46.593 million).

(b) Litigation in progress

(c) Native title claims over departmental land

(d) Contract performance guarantees

Events occurring after balance date

Financial instruments(a) Categorisation of financial instrumentsThe department has the following categories of financial assets and financial liabilities:

Category NotesFinancial assets

Cash and cash equivalents 20Receivables 21

Total financial assets

Financial liabilitiesFinancial liabilities measured at amortised cost:

Payables 30Interest-bearing liabilities 31Other liabilities - loans 33

Total financial liabilities

2013$'000 $'000

43.

$'000

There are no material events occurring after 30 June 2014 to report.

At 30 June 2014, the department has one claim before the Supreme Court. It is not possible to make a reliable estimate of the final amount payable, if any, in respect of the litigation before the courts at this time. However, if the department is unsuccessful, any awarding of costs will be subject to recovery from the proponent.

41.

All QIIS funds are underwritten by performance undertakings and in the case of cash grants, secured by bank guarantees or equivalent securities from the grantee for the full term of the agreement.

50,784313

-

42.

Other expenditure commitments inclusive of anticipated GST, committed to be provided at reporting date, but not recognised in the accounts are payable as follows:

2014

At 30 June 2014, native title still exists over land owned by the Minister for Economic Development Queensland. Native Title claims have been lodged and registered in the Federal Court of Australia but these claims have not yet been determined by the Court. At reporting date it is not possible to make an estimate of any probable outcome of these claims, or any financial effect.

3,200218,562

2014

13,94823,759

2013

14,748

The department holds bank guarantees in relation to Queensland Investment Incentive Scheme (QIIS) grants and other financial support provided to private sector proponents.

34,930

51,369

The total value of bank guarantees held for 13 QIIS projects as at 30 June 2014 is $7.43 million (2012-13 was 16 projects and $25.965 million).

Other matters relate to land resumptions before the Land Court, however it is not possible to determine the probable outcome of claims against the department, or any financial effect.

$'000

203,302

There is one claim for costs through the Queensland Government Insurance Fund (QGIF). Under QGIF, the department would be able to claim back the amount paid for successful claims, less a $10,000 deduction.

60,226100,828

Grants and subsidies commitments inclusive of anticipated GST, committed to be provided at the reporting date, but not recognised in the accounts are payable as follows:

Other bank guarantees are held for financial support provided on projects across DSDIP and EDQ.

251

161,054

180

35,72313,4298,682

22,362

238,232

145,511

207,857

163,9933,200

23,759

At 30 June 2014, EDQ had provided financial guarantees totalling $1.066 million to Ergon Energy Corporation Ltd, Energex Ltd and Brisbane City Council to provide security for the performance of obligations under contracts for electrical works in Oonoonba, Andergrove, Clinton, Brisbane, Roma, Fitzgibbon, Bauman Way, Tannum Sands and Moranbah. Together with the above, EDQ has also provided a financial guarantee of $25,000 to Gladstone Regional Council as construction security for earthworks on Harvey Road.

13,768

40.

EDQ has also granted an indemnity for up to $6 million in favour of City of Gold Coast relating to works being carried out or caused to be carried out as part of the Commonwealth Games Village.

59,145

- 102 -


Financial instruments (continued)(b) Financial risk managementThe department’s activities expose it to a variety of financial risks – interest rate risk, credit risk, liquidity risk and market risk.

(c) Credit risk exposure

Maximum exposure to credit risk

Category NoteFinancial assetsQueensland Treasury Corporation - Cash funds 20Total financial assets

Financial assets

No collateral is held as security and no credit enhancements relate to financial assets held by the department.

No financial assets or financial liabilities have been offset and presented net in the Statement of Financial Position.

Ageing of past due but not impaired as well as impaired financial assets are disclosed in the following tables:

2014 financial assets past due but not impaired

ReceivablesTotal

2013 financial assets past due but not impaired

ReceivablesTotal

2014 individually impaired financial assets

ReceivablesAllowance for impairmentCarrying Amount

2013 individually impaired financial assets

ReceivablesAllowance for impairmentCarrying Amount

2,171 4,286

Measurement method

$'000

-

30 - 60 days

925

Credit risk

The allowance for impairment reflects the occurrence of loss events. The most readily identifiable loss event is where a debtor or lessee is overdue in paying a debt to the department, according to the due date (normally terms of 30 days). Economic changes impacting the department's debtors, and relevant industry data, also form part of the department's documented risk analysis.

2,005$'000

Overdue

3,034

-

Impairment loss expense for the current year regarding the department's receivables is $590,000 and an impairment loss reversal of $1.477 million.

The carrying amount of receivables represents the maximum exposure to credit risk. As such receivables are not included in the above disclosure.

$'000

If no loss events have arisen in respect of a particular debtor/lessee or group of debtors, no allowance for impairment is made in respect of that debtor/lessee or group of debtors. If the department determines that an amount owing by such a debtor/lessee does become uncollectible (after an appropriate range of debt recovery actions), that amount is recognised as a bad debt expense and written-off directly against receivables. In other cases where a debt becomes uncollectible but the uncollectible amount exceeds the amount already allowed for impairment of that debt, the excess is recognised directly as a bad debt and written-off directly against receivables.

Market risk

$'000

Interest rate sensitivity analysis

$'000

252

-

61-90 days

$'000

More than 90 days

$'000 $'000 $'000

-

383

Total overdue

Total overdue

-

-

(3,034)

61-90 days

873

777

2,171

309

Risk exposure

Liquidity riskAgeing analysis, earnings at riskSensitivity analysis

4,286911

873(861)

12

$'000

$'000

(2,005)-

$'000

All financial risk is managed under policies approved by the department which relate to financial arrangements as required by Queensland Treasury and Trade.

Financial risk management is implemented pursuant to Queensland Government and departmental policy. These policies focus on the unpredictability of financial markets and seek to minimise potential adverse effects on the financial performance of the department.

Less than 30 days

911383

6

Credit risk exposure refers to the situation where the department may incur financial loss as a result of another party to a financial instrument failing to discharge their obligation.

-

The following table represents the department’s maximum exposure to credit risk based on contractual amounts net of any allowances:

More than90 days

61-90 days More than90 days

-

30 - 60 days

Total overdue

1,038

30 - 60 days

Overdue

6 925

117,101

2014

-

Less than 30 days

(861)

$'000

1,038

$'000

Total overdue

$'000

-

$'000

$'000

61-90 days

$'000

821

-

821

-

117,101 -

309

-

$'000

2,278

$'000

Less than 30 days

30 - 60 days

More than 90 days

2,278

The department measures risk exposure using a variety of methods as follows:

2013

12

Overdue

$'000

Overdue

(252) (777)

Less than 30 days

-$'000

-

43.

The maximum exposure to credit risk at balance date in relation to each class of recognised financial assets is the gross carrying amount of those assets inclusive of any allowances for impairment.

-

- 103 -


Financial instruments (continued)

Movements in allowance for impairmentBalance at 1 JulyAllowance transferred to receivables(Increase)/decrease in allowance recognised in operating resultBalance at 30 June

(d) Liquidity risk

Notes

Payables 30Interest-bearing liabilities 31

33Total

Payables 30Interest-bearing liabilities 31

33Total

(e) Market risk

(f) Interest rate sensitivity analysis

Financial instruments

Assets

Cash (1)

Loan and advances receivable (2)

Liabilities

Queensland Treasury Corporation borrowings (3)

Potential impact

Assets

Cash (1)

LiabilitiesQueensland Treasury Corporation borrowings (3)

Potential impact

(1) Economic Development Queensland (EDQ) holds cash in interest bearing accounts. (2) EDQ holds a catalyst loan subject to floating interest rate. (3) Only the borrowings held by EDQ from Queensland Treasury Corporation are at variable rates.

The department is exposed to liquidity risk in respect of its payables and borrowings from Queensland Treasury Corporation for capital works. The borrowings are based on the Queensland Government's gazetted fixed rates.

-

The department does not trade in foreign currency and is not materially exposed to commodity price changes. The department is exposed to interest rate risk through its finance leases, borrowings from Queensland Treasury Corporation and cash deposited in interest bearing accounts. The department does not undertake any hedging in relation to interest risk.

60,228

Equity

-

218,563

(673)71

$'000

$'000

Carrying amount$'000

59,145

-$'000

-

1 - 5 years$'000

(673)673

59,058

71

145,511

887

$'000

29,401 59,058-

57,051

Equity$'000

1,287

59,145

(71)

Equity

(2,033)

3,200

51,369

Profit

602

51,369

Profit$'000

2014

12,171

(860)

3,200

< 1 year

2013

(2,033)

1,465

$'000(3,034)

$'000

3,200

(3,034)

(602)

2014

207,856

2014 interest rate risk

$'000

$'000

$'000$'000

1 - 5 years

Total 2013 payable in

Equity

2014 payable in

(1,465)

+ 1 %

2,033

Profit

The following interest rate sensitivity analysis is based on a report similar to that which would be provided to management, depicting the outcome to operating result if interest rates would change by +/- 1% from the year-end rates applicable to the department's financial assets and liabilities. With all other variables held constant, the department would have a profit and equity increase/decrease of $1.465 million (2012-13: $71,000). This is mainly attributable to the department's exposure to variable interest rates on its borrowings from Queensland Treasury Corporation and cash funds that are held in interest bearing bank accounts.

(1,465)

673

602

570 570

+ 1 % 2013 interest rate risk

< 1 year

56,966

3,200

$'000

- 1 %

163,994

(1,505)

66,740Other liabilities - loans

-

$'000

$'000> 5 years

> 5 years$'000

- 57,051

$'000

(71)

$'000

81,853

The following table sets out the liquidity risk of financial liabilities held by the department. It represents the contractual maturity of financial liabilities, calculated based on undiscounted cash flows relating to the liabilities at the reporting date.

91,747

- 1 %

2,033

(570)1,465

203,302

69,970-

(602)

Other liabilities - loans

67,348

(1,530)

The department manages liquidity risk through the use of a liquidity management strategy. This strategy aims to reduce the exposure to liquidity risk by ensuring the department has sufficient funds available to meet employee and supplier obligations as they fall due. This is achieved by ensuring that minimum levels of cash are held within the various bank accounts to match the expected duration of the various employee and supplier liabilities.

Liquidity risk refers to the situation where the department may encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset.

(570)

Total

Carrying amount Profit

250 (2) (2) 2 2

43.

2013

81,853-

69,970

- 104 -


Financial instruments (continued)(g) Fair value

Financial liabilities at amortised costInterest-bearing liabilitiesTotal

Leases - as lessor

(a) Finance leases

Future minimum lease payments receivable under the free holding leases, together with their present value, are as follows:

Not later than one yearLater than one year and not later than five yearsLater than five yearsTotal minimum future lease receivablesLess unearned finance interest revenuePresent value of total minimum future lease receivables

Included in note 20 of these financial statements as:Current finance lease debtorsNon-current finance lease debtorsCarrying amount at 30 June

(b) Operating leases Minimum future lease payments receivable under the operating leases are as follows:

Not later than one yearLater than one year and not later than five yearsLater than five yearsTotal minimum future lease receivables

Commercial and industrial properties (Economic Development Queensland)

Mary Valley properties

The fair value of borrowings is notified by Queensland Treasury Corporation. It is calculated using discounted cash flow analysis and the effective interest rate (refer note 31) and is disclosed below.

11,90053,922

215,240281,062

21,330

3,578

25,433 21,330

15,536

Carrying amount

The fair value of trade receivables and payables is assumed to approximate the value of the original transaction, less any allowance for impairment.

5,95416,389

474,275

68,168

$ '0002014

Fixed term leases and ongoing perpetual leases are issued for commercial and industrial use. An annual rent is payable on 1 September each year, and is based on the unimproved value of the land, multiplied by the rental category percentage rate 7%. The Department of Natural Resources and Mines annually assesses the unimproved value, therefore rent is variable unless otherwise fixed in the conditions of the lease.

In calculating minimum future lease receivables, it is assumed that perpetual leases will continue for a further 15 years.

The department has honoured all existing lease and rental agreements upon purchase of Mary Valley properties from Queensland Water Infrastructure Pty Ltd. Lease terms range from periodic leases to leases with expiry up to 31 December 2035.

392,888

Minimum future lease payments receivable

6,111

2013$ '000$ '000

21,330

13,219

25,433

The Department of Natural Resources and Mines acts as an agent on behalf of Economic Development Queensland in administering the finance and operating leases of Economic Development Queensland in accordance with the Land Act 1994. These leases are recognised in the financial statements in accordance with note 2(v).

19,4794,941

Upon expiry of the lease, the lessee loses the right to possession of the land and any improvements located thereon unless otherwise stated in the conditions of the lease. The lease may be cancelled after giving reasonable notice to the lessee if the lessee is in breach of the conditions of the lease including failure to comply with statutory requirements or failure to pay rent by a due date. The lessee may voluntarily surrender the lease, provided rents have been paid in full.

25,433

2013

14,510

147,906

Fair Value

8,930

2014

$'000

Minimum future lease payments receivable

7,06618,875 12,811

Present value of minimum future lease payments receivable

27,441

5,954

145,511

4,941

4,969

44.

145,511 147,906

25,4338,243

2014

4,839 5,871

$'000

$ '0002014

There are currently 32 freehold leases that are set over a 10 year term and one 30 year lease. At the reporting date, more than 55% of the leases are due to expire within the next five years.

The interest rate implicit in the free holding leases is 8.00% except for several older leases which are interest-free.

Free holding leases of land are issued to persons who elect to pay the purchase price for the land by annual instalments over the term of the lease. Freehold title transfers to the lessee when the purchase price is fully paid. The leases can be paid out at any time during their term without penalty. However, penalty interest is charged for any late payment.

2014

163,993

$ '000

169,790 169,790

2013Fair Value

$'000

33,676--

2013$ '000

21,330

2013Carrying amount

$'000

163,993

43.

- 105 -


45. Schedule of administered items

Notes

2014 2013 2014 2013 2014 2013 2014 2013$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Administered RevenuesAppropriation revenue * 45(a) 25,649 589,314 2,500 - - - 28,149 589,314 Other revenue 9,419 - - - - - 9,419 -

Total Administered Revenues 35,068 589,314 2,500 - - - 37,568 589,314

Administered Expenses Grants and subsidies * 45(b) 25,649 589,314 2,500 - - - 28,149 589,314 Transfers of administered revenue to Government 9,419 - - - - - 9,419 -

Total Administered Expenses 35,068 589,314 2,500 - - - 37,568 589,314

Operating Surplus/(Deficit) - - - - - - - -

Administered AssetsCurrent

Cash - - - - - 1,631 - 1,631Receivables 45(c) 1,797 - - - - - 1,797 -

Total Current Assets 1,797 - - - - 1,631 1,797 1,631

Total Assets 1,797 - - - - 1,631 1,797 1,631

Administered LiabilitiesCurrent

Bank overdraft 1,797 - - - - - 1,797 - Payables 45(d) - - - - - 1,631 - 1,631

Total Current Liabilities 1,797 - - - - 1,631 1,797 1,631

Net Administered Assets - - - - - - - -

Administered EquityContributed equity 9,212 9,212 - - - - 9,212 9,212 Accumulated surplus/deficit (9,212) (9,212) - - - - (9,212) (9,212)

Total Administered Equity - - - - - - - -

(1)

(2) General Non-attributed amounts are recovery of funds owing to the Department of Science, Information Technology, Innovation and the Arts.

Major Project Office (1) General Non-Attributed (2) TotalState Development (1)

Refer to note 3 for a description of major departmental services.

- 106 -


Schedule of administered items(a) Reconciliation of payments from Consolidated Fund to administered revenueBudgeted administered item appropriationBudgeted administered equity adjustment appropriationTransfers (to)/from other departmentsTransfers from other headings - controlledLapsed appropriationAdministered revenue recognised

This is represented by:

Administered item revenue recognised in the Statement of Comprehensive IncomeAppropriated equity adjustment recognised in Contributed equityTotal

(b) Grants and subsidiesStatutory authoritiesLocal governmentTotal grants and subsidies

(c) ReceivablesCurrent

Trade debtorsGST payableTotal current receivables

(d) PayablesCurrent

Trade creditorsTotal current payables

-

1,797

2014 2013

604,314

18,124

589,314

28,149 589,314

1,902

$ '000

(105)

-1,6311,631

$ '000

2,500

28,149 589,314

-

604,314

28,149

-

10,025 2,375,424- 15,000

(10,025)

- (1,776,085)-

-

45.

-

- 15,00028,149

25,649

-

- 107 -

- 108 -

INDEPENDENT AUDITOR'S REPORT

To the Accountable Officer of the Department of State Development, Infrastructure and Planning

Report on the Financial Report

I have audited the accompanying financial report of the Department of State Development, Infrastructure and Planning, which comprises the statement of financial position and statement of assets and liabilities by major departmental service and commercialised business unit as at 30 June 2014, the statement of comprehensive income, statement of changes in equity, statement of cash flows and statement of comprehensive income by major departmental service and commercialised business unit for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the certificates given by the Director-General and Chief Finance Officer.

The Accountable Officer's Responsibility for the Financial Report The Accountable Officer is responsible for the preparation of the financial report that gives a true and fair view in accordance with prescribed accounting requirements identified in the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2009, including compliance with Australian Accounting Standards. The Accountable Officer's responsibility also includes such internal control as the Accountable Officer determines is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

Auditor's Responsibility My responsibility is to express an opinion on the financial report based on the audit. The audit was conducted in accordance with the Auditor-General of Queensland Auditing Standards, which incorporate the Australian Auditing Standards. Those standards require compliance with relevant ethical requirements relating to audit engagements and that the audit is planned and performed to obtain reasonable assurance about whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control, other than in expressing an opinion on compliance with prescribed requirements. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Accountable Officer, as well as evaluating the overall presentation of the financial report including any mandatory financial reporting requirements approved by the Treasurer for application in Queensland.

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

Independence The Auditor-General Act 2009 promotes the independence of the Auditor-General and all authorised auditors. The Auditor-General is the auditor of all Queensland public sector entities and can only be removed by Parliament.

The Auditor-General may conduct an audit in any w ay considered appropriate and is not subject to direction by any person about the way in which audit powers are to be exercised. The Auditor-General has for the purposes of conducting an audit, access to all documents and property and can report to Parliament matters which in the AuditorGeneral's opinion are significant.

Opinion In accordance with s.40 of the Auditor-General Act 2009-

(a) I have received all the information and explanations which I have required; and

(b) in my opinion-

(i) the prescribed requirements in relation to the establishment and keeping of accounts have been complied with in all material respects; and

(ii) the financial report presents a true and fair view, in accordance with the prescribed accounting standards, of the transactions of the Department of State Development, Infrastructure and Planning for the financial year 1 July 2013 to 30 June 2014 and of the financial position as at the end of that year.

Other Matters - Electronic Presentation of the Audited Financial Report

Those viewing an electronic presentation of these financial statements should note that audit does not provide

assurance on the integrity of the information presented electronically and does not provide an opinion on any information which may be hyperlinked to or from the financial statements. If users of the financial statements are

concerned with the inherent risks arising from electronic presentation of information, they are advised to refer to the

· t d py of the audited financial statements to confirm the accuracy of this electronically presented Information.

AUDITOR GENERAL ·~J--______,

AM tsFCA~ Auditor-Gen r of Queensland Queensland Audit Office

Brisbane

- 109 -

Appendices


Appendix 1 Government bodiesGovernment body (role)

Functions and responsibilities

2013-14 achievements

Costs

South Bank Corporation

A statutory body established under the South Bank Corporation Act 1989

To promote, facilitate, carry out and control the development, disposal and management of land and other property within the Corporation Area in order to ensure that the development accords with the highest possible standards and is in the interests of the people of the City of Brisbane and of Queensland.

The Corporation’s achievements are reported in its annual report—reported separately from the department.

The Corporation’s financial statements are contained in its annual report—reported separately from the department.

GasFields Commission Queensland

An independent statutory body established under the GasFields Commission Act 2013

Manage and improve sustainable coexistence among rural landholders, regional communities and the onshore gas industry.

The Commission has powers to:

review legislation and regulation

obtain and disseminate factual information

advise on coexistence issues

convene parties to resolve issues

and make recommendations to government and industry.

The Commission’s achievements are reported in its annual report—reported separately from the department.

The Commission’s financial statements are contained in its annual report— reported separately from the department.


Government body (role)



Costs

Board for Urban Places

(Advisory)

To advise the Government on design aspects of major infrastructure and urban planning projects; assist the Government to promote community awareness of good urban design and built environment issues; and facilitate linkages between community expectations and Government urban policy issues.

Provided detailed urban design and economic facilitation advice on:

Albion Rail Station Redevelopment

Ferny Grove Transit Oriented Development

Yeerongpilly Transit Oriented Development

Bus and Train Tunnel Precinct Planning

Toondah Harbour Priority Development Area

Moreton Bay Rail project

Cleveland Rail Station Redevelopment.

Remuneration costs of $3,736.

Commonwealth Games Infrastructure Authority

(Advisory)

To assist the Minister for Economic Development Queensland (MEDQ) in relation to the planning and development of the Gold Coast 2018 Commonwealth GamesTM Village and other venues. The authority will report to the MEDQ through the Economic Development Board.

Selected the preferred development partner for the Gold Coast 2018 Commonwealth GamesTM Village.

Endorsed the Department of Transport and Main Roads funding submission for Transport Infrastructure to support the Commonwealth Games.

Nil remuneration costs

(Chair fee waived).





Costs

Economic Development Board

(Advisory)

Advise and make recommendations to the MEDQ about how MEDQ can effect the main purpose of the Economic Development Act 2012 (the Act)

Monitor and report to MEDQ about the performance of MEDQ’s functions or exercise of MEDQ’s powers by entities (including the Board) to whom the functions or powers are delegated

Ensure MEDQ adopts best practice corporate governance and financial management and accountability arrangements

Perform the functions and exercise the powers of MEDQ delegated under the Act.

Approved/endorsed:

development schemes for the Parklands, Blackwater East, Toondah Harbour and Weinam Creek PDAs

declaration of PDAs in Maroochydore City Centre and Southport

business case for development management of the Yeerongpilly urban project by EDQ

completion of the Property Asset Utilisation Review.

Nil remuneration costs

(all government members).

Gladstone Foundation Board of Advice

(Advisory)

To provide a structured approach to address the social infrastructure needs of the people of the Gladstone region in an appropriate way, achieving the best return from all investments in the Foundation for social infrastructure.

The Board’s achievements are reported in the Office of the Queensland Public Trustee Annual report—reported separately from the department.

Nil remuneration costs.





Costs

Royal National Agricultural and Industrial Association of Queensland (RNA)

(Trust)

Management of the RNA showgrounds and staging of the annual Brisbane Ekka.

(The department’s involvement is limited to the administration of the RNA Act.)

The RNA continued to progress its proposed subdivision regarding the reconfiguration of development lots for the RNA Showground Redevelopment.


Blackall Range Iconic Advisory Panel

(Advisory)

To advise local government about whether or not a planning proposal would be consistent with the place’s iconic values.

The Panel did not meet in 2013-14.


Central Capricorn Coast (Livingstone Localities) Iconic Advisory Panel

(Advisory)




Noosa Iconic Advisory Panel

(Advisory)





Appendix 2 Compliance checklist Summary of requirement Basis for

requirement Annual report

reference

Letter of compliance

• A letter of compliance from the accountable officer or statutory body to the relevant Minister

ARRs – section 8 Letter of compliance

Accessibility • Table of contents

• Glossary

ARRs – section 10.1 Contents

Glossary

• Public availability ARRs – section 10.2 Imprint page

• Interpreter service statement

Queensland Government Language Services Policy ARRs – section 10.3

Imprint page

• Copyright notice Copyright Act 1968 ARRs – section 10.4

Imprint page

• Information licensing QGEA – Information Licensing ARRs – section 10.5

Imprint page

General information

• Introductory information ARRs – section 11.1

Director General’s message

About the department

• Agency role and main functions

ARRs – section 11.2 About the department

• Operating environment ARRs – section 11.3 Operating environment

• Machinery of government changes

ARRs – section 11.4 About the department

Non-financial performance

• Government’s objectives for the community

ARRs – section 12.1 Government’s objectives for the community

• Other whole-of-government plans / specific initiatives

ARRs – section 12.2 Working across government—a collaborative approach

• Agency objectives and performance indicators

ARRs – section 12.3 Achieving outcomes for the community

• Agency service areas and service standards

ARRs – section 12.4 Performance against service standards

Financial performance

• Summary of financial performance

ARRs – section 13.1 Summary of financial performance


Summary of requirement Basis for requirement

Annual report reference

Governance – management and structure

• Organisational structure Annual report requirements (ARRS) – section 14.1

Governance

Organisational structure

• Executive management ARRs – section 14.2 Governance

Executive management

• Related entities ARRs – section 14.3 Appendix 1 Government bodies

• Government bodies ARRs – section 14.4 Appendix 1 Government bodies

• Public Sector Ethics Act 1994

Public Sector Ethics Act 1994 (section 23 and Schedule)

ARRs – section 14.5

Ethics and integrity

Governance – risk management and accountability

• Risk management ARRs – section 15.1 Risk management

• External scrutiny ARRs – section 15.2 Accountability

External reviews

• Audit committee ARRs – section 15.3 Accountability

Audit and Risk Management Committee

• Internal audit ARRs – section 15.4 Internal audit

• Public sector renewal ARRs – section 15.5 Director-General’s message

• Information systems and recordkeeping

ARRs – section 15.6 Information management and recordkeeping

Governance – human resources

• Workforce planning, attraction and retention, and performance

ARRs – section 16.1 Our workplace, our people

Workforce profile

Managing our workforce

• Early retirement, redundancy and retrenchment

Directive No.11/12 Early Retirement, Redundancy and Retrenchment ARRs – section 16.2

Our workplace, our people

Early retirement, redundancy and retirement

Open Data • Open Data ARRs – section 17 Imprint page


Summary of requirement Basis for requirement

Annual report reference


• Certification of financial statements

FAA – section 62

FPMS – sections 42, 43 and 50



• Independent auditors report FAA – section 62

FPMS – section 50



• Remuneration disclosures Financial Reporting Requirements for Queensland Government Agencies ARRs – section 18.3



Abbreviations Abbreviation Description

ARMC Audit and Risk Management Committee

CBD Central Business District

CG Coordinator-General

CGIA Commonwealth Games Infrastructure Authority

CMC Crime and Misconduct Commission

DIQld Defence Industries Queensland

DLGCRR Department of Local Government, Community Recovery, and Resilience

DSDIP Department of State Development, Infrastructure and Planning

EDQ Economic Development Queensland

EIS Environmental impact statement

ELT Executive Leadership Team

FAMC Finance and Asset Management Committee

GFCQ GasFields Commission Queensland

IAR Impact assessment report

ICT Information, communications and technology

IRD Integrated Resort Development

ISC Information Steering Committee

LNG Liquefied natural gas

MEDQ Minister for Economic Development Queensland

PDA Priority development area

QAO Queensland Audit Office

RPIA Regional Planning Interests Act 2014

SARA State assessment and referral agency

SDA State development area


SDPWO State Development and Public Works Organisation Act 1971

SDS Service Delivery Statement

SLA Service Level Agreement

SPA Sustainable Planning Act 2009

SPP State Planning Policy

UNESCO United Nations Organisation for Education, Science and Culture


Glossary Term Description

Administrative arrangements

Administrative Arrangements Orders set out the principal responsibilities of government ministers and their portfolios.

Consultancies A consultant, which may be an individual or an organisation, provides expert advice with recommendations to a department/agency as the basis for making a decision or taking a certain course of action.

Machinery-of-government

changes

The term ‘machinery-of-government changes’ (MOG changes) is used to describe a variety of organisational or functional changes which may affect the Queensland Government at any point in time. Some common MOG changes are:

• changes to the Administrative Arrangements following a decision to abolish or create a department/agency or to move functions/responsibilities between departments/agencies

• creation of a new statutory body, or abolition of a statutory body

• movement of functions into, or out of, the Queensland public sector.

Priority development area A priority development area is a site declared by the state government to facilitate the development of land in Queensland for economic development or community purposes.

Regional plans Regional plans operate in conjunction with other statutory planning tools, including state planning policies, local government planning schemes, state planning regulatory provisions and development assessment processes. Regional plans can be drafted as statutory instruments under the Sustainable Planning Act 2009.

State development area State development areas are clearly defined areas of land established by the Coordinator-General to promote economic development in Queensland.

Whole-of-government Whole-of-government is a term used to refer to all Queensland Government departments and agencies.


Contact us

Department of State Development, Infrastructure and Planning 41, 63 and 100 George Street, Brisbane PO Box 15009, City East Qld 4002 tel 13 QGOV (13 74 68) or +61 7 3452 7009 fax +61 7 3224 4683 [email protected] North offices Far North Queensland regional office Main office – Cairns Ground Floor, Cairns Port Authority Building, Cnr Grafton and Harley Streets, Cairns PO Box 2358, Cairns Qld 4870 tel +61 7 4037 3209 [email protected] [email protected] Mackay Isaac Whitsunday regional office Main office – Mackay Level 4, 44 Nelson Street, Mackay PO Box 710, Mackay Qld 4740 tel +61 7 4898 6800 [email protected] [email protected] North and Central West regional office Main office – Mt Isa 1/75 Camooweal Street, Mount Isa PO Box 2221, Mount Isa Qld 4825 tel +61 7 4747 3900 [email protected] [email protected] North Queensland regional office Main office – Townsville Level 5, Central Plaza, 370 Flinders Street, Townsville PO Box 1732, Townsville Qld 4810 tel +61 7 4758 3404 [email protected] [email protected] Fitzroy/Central regional office Main office – Rockhampton Level 3, 130 Victoria Parade, Rockhampton PO Box 113, Rockhampton Qld 4700 tel +61 7 4924 2914 [email protected] [email protected] South offices Wide Bay Burnett regional office Main office – Bundaberg Level 1, 7 Takalvan Street, Bundaberg PO Box 979, Bundaberg Qld 4670 tel +61 7 4331 5614 [email protected] [email protected]

Darling Downs South West regional office Main office – Toowoomba 128 Margaret Street, Toowoomba PO Box 825, Toowoomba Qld 4350 tel +61 7 4616 7307 [email protected] [email protected] South East Queensland (North) regional office Main office – Maroochydore Level 8, Mike Ahern Building, 12 First Avenue, Maroochydore PO Box 1129, Maroochydore Qld 4558 tel +61 7 5352 9701 [email protected] [email protected] South East Queensland (West) regional office Main office – Ipswich Level 4, 117 Brisbane Street, Ipswich PO Box 129, Ipswich Qld 4300 tel +61 7 3432 2400 [email protected] [email protected] South East Queensland (South) regional office Main office - Gold Coast 7 Short Street, Southport PO Box 3290, Australia Fair, Southport Qld 4215 tel +61 7 5644 3200 [email protected] [email protected]






















Documents

Department of State Development, Infrastructure …...call the Translating and Interpreting Service (TIS National) on telephone 131 450 and ask them to telephone the Queensland Department