Housing Authority 2006-07 Annual Report · 2011-11-25 · Western Australia. ... And the key to this success lies with our staff. Our management group must provide the leadership

Housing Authority

www.dhw.wa.gov.au

2006-07

Annual Report

© Department of Housing and Works 2007

http://www.dhw.wa.gov.au

2 Housing Authority 2 0 0 6 - 0 7 A n n u a l R e p o r t © Department of Housing and Works 2007

Housing Authority 2 0 0 6 - 0 7 A n n u a l R e p o r t

The Housing Authority encourages people to use recycled paper if printing this report (in part or full).

This work is copyright. It may be reproduced in whole or in part for study or training purposes, subject to the inclusion of an acknowledgement of the source. It may not be reproduced for commercial usage or sale. Reproduction for purposes other than those indicated above requires written permission from the Housing Authority.

Housing Authority

Our Vision

RespondingtothehopesofallWesternAustraliansfortheirhousingandconstructionneeds.

Our MissionLeadingintheprovisionofhousingservicesanddevelopmentofabuiltenvironmentwhichcontributesto:

supportive,vibrantandsustainablecommunities;

arobusteconomy;

strongregionaldevelopment;and

thenaturalenvironment

forthebenefitofallWesternAustralians.

Our Role

WeareplayingourpartinbuildingabettercommunitybyprovidingandsupportinghousingforWesternAustralianswhocannototherwiseaffordtheirownhomesbyarrangingaffordablehousingfinance,rentalhousingandland.

••••

� Housing Authority 2 0 0 6 - 0 7 A n n u a l R e p o r t © Department of Housing and Works 2007

ContentsContents

Contents ................................................................................ �

What we do ........................................................................... 4Our Role ...........................................................................................................4

Director General’s Report .................................................. 5

Executive Summary ............................................................ 7Highlights .......................................................................................................7Key statistics ...............................................................................................11Future Directions - Major Initiatives for 2007-08 .................12

Operational Structure ....................................................... 14Agency Overview ...................................................................................14

Performance Management Framework ........................ 18Our Contribution to Government Goals and Outcomes ..18

Report on Operations ....................................................... 21Social Housing ..........................................................................................21Aboriginal Housing and Infrastructure ......................................28Land and Housing Development .................................................30Home Ownership ...................................................................................36Government Regional Officers’ Housing (GROH) ................38Other Affordable Housing Initiatives ..........................................42

Significant Issues and Trends .......................................... 4�

Disclosures and Legal Compliance ................................. 45Audit and Risk Management ..........................................................45Other Financial Disclosures ...............................................................47Governance Disclosures .....................................................................54Other Legal Requirements ................................................................55Government Policy Requirements ...............................................62

Auditor General’s Opinion ............................................... 67

Performance Indicators .................................................... 70

Financial Statements ........................................................ 78

Appendix 1 – Housing Industry Awards......................1�0

Where we are Located ....................................................1�1

ThisreportcanbedownloadedfromtheDepartment’swebsite:www.dhw.wa.gov.auThisannualreportwasdesignedandproducedinternallybytheHousingAuthorityusingAdobeInDesignCS2.

Statement of Compliance

FORTHEYEARENDED30JUNE2007TotheHonMichelleRobertsMLAMinisterforHousingandWorks.

InaccordancewithSection61oftheFinancial Management Act 2006,IherebysubmitforyourinformationandpresentationtoParliament,theAnnualReportoftheHousingAuthorityforthefinancialyearended30June2007.

TheAnnualReporthasbeenpreparedinaccordancewiththeprovisionsoftheFinancial Management Act 2006.

R. J. MitchellDirector General




TheHousingAuthorityoperatesthroughtheDepartmentofHousingandWorksunderoneadministrativestructure.ThisannualreportdealsonlywiththefunctionsoftheHousingAuthority(thatis,theareasofSocialHousing,AboriginalHousingandInfrastructure,LandandHousingDevelopment,HomeOwnershipandGovernmentRegionalOfficers’Housing).Thepublicworks‑relatedfunctionsoftheDepartmentaredetailedinaseparateannualreport.

Formoredetailsoftheadministrativestructureseepage15.

What we do

Our RoleWe play a key part in helping build stronger communities by providing and supporting housing for people who might not otherwise be able to afford it.

We have more than 1,000 staff working across the State to help achieve this goal.

Our Department, the Department of Housing and Works, has been restructured over the past year and as part of that process we are firmly focused on three strategic intentions:

More people in housing

Improving Aboriginal communities

Improving building and infrastructure

1.

2.

�.

Improving building and infrastructure

More people in housing

Improving Aboriginal communities

4


Director General’s Report

This annual report details the first year of operations of the Housing Authority

– and what a year it’s been.

Fuelled by the continuing economic growth in resources, Western Australia’s economy is surging: unemployment is at record lows; the share market is regularly hitting new highs; and the property and construction industries are flat out keeping up with the demand for houses and apartments.

But while the news is undoubtedly good for most West Australians, it is not so good for many of our key clients wanting to access our programs and services.

The economic growth in real estate means that many people might not be able to afford to buy a home, and those that have a home might be enduring housing stress and have to look at other options.

That’s where we come in.

Our programs help tackle homelessness; we build and buy properties to meet the demand for social rental housing; and provide a range of accommodation options and programs to meet the needs of our customers and clients.

We also provide housing and infrastructure such as power stations for remote and town-based Aboriginal communities.

We help people realise their dreams of owning their own home by providing low deposit, affordable home ownership schemes.

We have an ambitious program involving urban redevelopment projects – many of them undertaken in conjunction with private sector joint venture partners – to revitalise older communities and release more land and houses onto the market.

On top of that, we also provide accommodation services for thousands of government employees such as teachers, police and medical staff in 250 locations around the State.

In fact, we’ve been flat out this year. But we’ve got our eye on next year – and beyond.

As you probably realise, the Housing Authority is a statutory authority that is supported by the Department of Housing and Works.

We came into being as part of the Machinery of Government legislation that came into effect on 1 July 2006.

The transformation of the Department has resulted in a major reorganisation of the way housing services are delivered in Western Australia.



... continuedDirector General’s ReportThose changes led to the creation of the Housing Authority, by merging the roles of the former Government Employees’ Housing Authority (GEHA) and the State Housing Commission.

... And the changes are continuing.

As head of the Housing Authority and the Department of Housing and Works, I took the opportunity the restructure provided to review our strategic direction for the next three to five years.

Our new direction was outlined in the Statement of Strategic Intentions and Priorities which I released last year, and used to reshape the Department by building capacity, competencies, and more clearly defining our purpose and direction.

It also outlined the direction I intend to take the Housing Authority and the Department over the next few years: having more people in housing, improving Aboriginal communities, and improving buildings and infrastructure.

This year, following a strategic planning seminar, we entered our second phase of transition by updating that blueprint to place a greater emphasis on meeting the demands and needs of our customers.

But that’s not all. As well as this internal realignment of the Department, we are also undergoing an Organisational Effectiveness Review of the clients we serve, the services we provide and the way they are delivered.

In undertaking this ambitious agenda for change, we must ensure that we work collaboratively with Government, the community and the private sector to ensure that what is delivered satisfies our clients’ needs and represents value for every taxpayer dollar spent.

It is our intention to ensure that the people who rely on our services – our clients – are the key focus of our attention. In all our dealings, we must put ourselves in their place and ask ourselves if we would be satisfied with the services we have provided.

Our renewed focus represents a major opportunity to introduce changes that will provide significant benefits to the community of Western Australia.

... And the key to this success lies with our staff.

Our management group must provide the leadership that ensures our core values, new structures, processes and ‘ways of doing business’ become embedded in the culture of our new organisation.

We must also adequately invest in staff development, training and recruitment to help people reach their full potential.

Most of all, we all need to strive to make sure the Housing Authority and the Department are places we are proud of, proud of our achievements and proud of the part that we play in our business of building a better community.

We are looking forward to the challenge.

R.J. Mitchell Director General


Executive Summary

Renewed focus on stock growth to help meet the ongoing demand for public rental housing. 861 new properties were purchased or constructed during 2006-07. In addition, two units were completed that will be used as display homes in the short-term and eventually be released for sale.

A total of 4,732 units of accommodation were available under the Authority’s Community Housing programs in conjunction with non-profit organisations. These include units for people with disabilities and units for crisis accommodation (including women and children escaping domestic violence, and homeless youth). During the year, 149 units were completed, with a further 138 units provided from public rental housing stock.

Completion of the Joyce Apartments, a 69-unit development in Goderich Street, East Perth.

Development of 20 residential units for families and single people as well as four commercial properties in Subiaco were completed.

Thomas Apartments, a 37-unit, multi-storey development in Cheriton Street, Perth, was completed in June 2007. This development provides housing for seniors, single people, small family households and people with disabilities.

•

•

•

•

•

The Housing Authority is involved in a joint venture project with Foundation Housing to construct 50 lodging house rooms, 18 apartments and six commercial units in Newcastle Street, Northbridge.

The Housing Authority has entered into a joint venture with Foundation Housing to build 22 two-and three-bedroom units for families in the old Midland Workshops area.

The internal refurbishment of the 300-unit Brownlie Towers complex commenced in September 2003 and the Housing Authority managed the project in-house. The internal refurbishment of the units was completed in September 2006 and the external upgrade commenced in April 2006 and is estimated to be completed by December 2008.

•

•

•

HighlightsSocial (Public Rental and Community) Housing

JoyceApartments



Aboriginal Housing and Infrastructure

A total of $14.6 million was spent on maintenance for essential services (power, water and wastewater services) in 91 communities under the Remote Areas Essential Services Program (RAESP).

Work commenced on 104 houses, with 77 completions and 12 spot purchases through the Community Construction program.

Operational support funding has been provided to 33 indigenous housing organisations and remote communities throughout the State to assist them in managing community housing. The IHMS (Indigenous Housing Management System) computer program, computer equipment and training have also been provided to support housing and tenancy management.

Under the Aboriginal Home Ownership Scheme, 39 Aboriginal families received assistance totalling $5.56 million.

The Housing Authority has been leading a new approach to address community issues in Halls Creek. Actions include new housing subdivisions, construction of new housing for the community and government workers, regularising and cleaning up town-based communities, refurbishing social housing, and improving social housing management.

The Housing Authority’s Housing Construction directorate, in partnership with Horizon Power, is implementing a large-scale electrical maintenance program to housing and infrastructure, installing power meters, and upgrading the system.

Housing management reform has increased rental collection from $4.2 million last year to approximately $6.1 million this year. Rental expenditure on maintenance has also increased, from $1.1 million last year to approximately $4.2 million this year.

•

•

•

•

•

•

•

The Housing Authority is seeking to partner with a not-for-profit organisation to develop a retirement/lifestyle village involving 280 to 350 independent living units at a site in the Dalyellup joint venture within the Shire of Capel. A shortlist of proponents has been drawn up following a call for expressions of interest and a request for tender (RFT) document is currently being developed.

The State Government has committed an additional $417.3 million to affordable housing through the Department of Housing and Works over four years commencing 2007-08. This will not only ensure the continuation of WA’s housing programs through effective delivery of public and community housing, but also grow total existing stock by around 1,000 dwellings.

•

•

TheAboriginalHomeOwnershipScheme

500thPurchaser

� Housing Authority 2 0 0 6 - 0 7 A n n u a l R e p o r t © Department of Housing and Works 2007

Land and Housing Development

For the 2006-07 financial year, our joint venture projects sold a total of 2,083 lots, earning a profit of $91.36 million.

Sales of 301 lots in the Perth metropolitan area, as well as in Bunbury, raised $60.82 million. The lots were part of the Authority’s internal land development program.

The redevelopment project in Willagee was completed. A total of 10 lots were sold which raised $2.87 million. The majority of lots in the project area were offered for sale to the public.

The Eastern Horizons New Living project was completed. Since this project commenced in 1999, the suburb has been transformed. Property values have increased significantly, crime rates have declined, and the amenity of housing and infrastructure have significantly improved.

The New North New Living project was awarded the 2006 Urban Development Institute of Australia (UDIA) Award for Excellence.

Albany Oyster Harbour Development - The Authority, through the Department of Housing and Works, entered into a joint venture with Heath Development Company in February 2007 to develop and market jointly owned land at Bayonet Head, located approximately six kilometres from the Albany town site. The development comprises approximately 206 hectares of land and will provide some 2,500 residential lots and several serviced commercial sites, including shopping and mixed use lots.

Purchase of Caversham Land - The Housing Authority acquired the former Royal Australian Air Force transmitter station at West Swan for $33.65 million. The site is strategically located in terms of providing a continuous supply of affordable land.

•

•

•

•

•

•

•

Amarillo (Keralup) Masterplan - The State Government has committed $2.7 million dollars to allow detailed studies to be undertaken which will include a strategic environmental assessment, integrated transport study and economic development study.

Joint Venture Awards

Ellenbrook project recently received the Urban Development Institute of Australia (UDIA) award for Best Affordable Development.

Dalyellup has received nine Planning Institute, Landscape Industries Association and UDIA awards.

Somerly, at Clarkson, won the 2006 UDIA Award for Best Affordable Development, and the 2007 UDIA Award for Best Residential Development of 250 Lots or More.

•

•-

-

-



Home Ownership

The First Start Shared Equity Scheme launched in February 2007 assists low to moderate income earners to own their own homes. With families and couples, the Housing Authority will purchase up to 40 per cent equity in the home with the client purchasing 60 per cent. With single applicants, the Authority will purchase up to 30 per cent equity with the client buying 70 per cent. Clients can increase their share when circumstances permit.

The Keystart Schemes approved 3,155 new and increased loans totalling $381 million.

A total of 1,061 new loans were provided for first homeowners.

Regional WA received a boost with 1,407 loans amounting to $154 million approved.

$256 million was approved for the purchase of 1,338 established homes during the year.

$57 million was approved for new constructions, which translated into 226 new building starts, providing more jobs for West Australians.

Government Regional Officers’ Housing (GROH)

Expenditure in the Capital Works and Acquisition program totalled $43.2 million, one of the highest results on record.

GROH commenced construction on 58 new properties, completed 34 units, and purchased a further 25 properties.

The Gordon Inquiry prompted the completion of a further 13 dwellings in the communities of Djarindjin (5), Bidyadanga (3), Warakurna (3), and Warmun (2).

A total of $4.8 million was spent on refurbishments State-wide with $3 million of that spent in the Pilbara.

•

•••••

•

•

•

•

The First Start Shared Equity Scheme assists families into home ownership


There were 15,438 applications for rental accommodation on the Authority’s waiting list as at 30 June 2007. The increase can be attributed to lower vacancy rates, high rental costs in the private rental market and increasing home purchase costs.

The increase in waiting times has been affected by the reduction in the number of people vacating public rental housing and an increase in the waiting list - due to current housing market conditions.

The decrease in home loans approved by Keystart was primarily due to increased property prices having an adverse affect on the ability to purchase a home, particularly at the lower end of the property market. The First Start Shared Equity Scheme launched in February 2007 will assist more families into home ownership. The private sector is now assisting more people by adopting Keystart’s low deposit criteria.

The decrease in the value of Keystart’s loan portfolio was mainly due to increased discharges and a decrease in new Keystart lending as a result of increased property prices, and the private sector assisting more people by adopting Keystart’s low deposit criteria.

The drop from 9,445 to 7,617 in the number of Bond Assistance applicants from the preceding 12 months was attributable to the current private rental vacancy rates being at historically low levels, reported as 0.8 per cent. Additionally, increases in private rental costs and migration into WA fuelled by the strong local economy have made it harder for low-income people to rent in the private market.

1.

2.

3.

4.

5.

The decrease in the number of vacant lots sold by Land and Housing Development between 2005-06 and 2006-07 is mainly due to lower sales in the following joint venture projects:

Beeliar, Dalyellup, Butler, Ellenbrook and Seacrest (Wandina), which suffered from a fall in market demand. Additionally at Dalyellup, there were environmental issues relating to the conservation of ringtail possums that caused delays with the development of Stage 13 lots, therefore fewer lots were available for sale. This has now been addressed and development of these lots will commence in July 2007.

Two JV projects near completion – Woodrise (Albany) and Brighton Beachside (Quinns) – have respectively two and seven lots remaining to settle in 2007-08.

The continuing high demand and volatility in the building industry has affected industry competitiveness and led to increased construction costs and longer construction periods. As a result, many projects that were originally expected to complete in 2005-06 carried over and completed in 2006-07 instead, which led to the increased completions for this year. This situation also resulted in higher expenditure in 2006-07.

Expenditure was similar to that in 2005-06 but, due to the increased construction costs in the building industry, fewer units could be refurbished with the available funds.

6.

-

-

7.

8.

2005-06 2006-071. Public Rental Housing Waiting List (number of applications) 13,780 15,4�8

2. Average Waiting Time for Public Rental Housing (weeks) 74 8�3. Keystart Home Loans Approved 4,135 �,155

4. Value of Keystart Home Loans Portfolio $1.61 billion $1.24 billion5. Bond Assistance (number of applicants assisted) 9,445 7,6176. Vacant lots sold by Land and Housing Development 2,907 2,4667. Construction and Spot Purchases (number and value) 879

$203 million1,101

$211 million8. Refurbishment and Bedsitter Conversions (number and value) 874

$42 million652

$40 million

Key statistics

Commentary on Key Statistics for 2006-07



Future Directions - Major Initiatives for 2007-08Our clients and stakeholders come from all walks of life. They include social housing clients, Aboriginal communities, non-profit organisations, government employees, all State government departments, and many building, construction, industry groups and associations.

With this in mind, the Authority’s Statement of Strategic Intentions and Priorities document which the Director General released in May 2006 was reviewed and updated in May 2007.

The statement describes three key areas that the Department and its housing-related agencies will focus on in ‘playing our part in building a better community’. These are:

More People In Housing

We aim to maximise the number of people in our community who have a ‘roof over their heads’. While this may seem an obvious issue for a department involved in housing, we need to do more to reduce homelessness, assist people secure a home of their own, or find alternative rental accommodation. This will include properties managed by community groups. The Authority will deliver at least 1,000 extra social housing dwellings over the next four years. This will involve an estimated 922 commencements each year. An important strategy to increase social housing is to expand the community housing sector. In the next four years, up to $210 million will be available to community housing providers to provide additional social housing.

Improving Aboriginal Communities

We intend to play a far greater, collaborative role in cross-government approaches involving the community, not-for-profit organisations, private and public sector agencies in addressing the major social issues confronting Aboriginal people in the remote communities of our State.

The Housing Authority and the Department will take an active leadership role in this matter, be aware of contemporary issues, and work with Aboriginal people to find new sustainable solutions for the problems they are facing.

Improving Building and Infrastructure

The third major area that we intend focusing on is ensuring that the development, design, delivery, procurement and maintenance processes for building-related infrastructure and buildings across government are appropriate and where demanded, world-class.

•

•

•

‘Playing our part in buidling a better community ‘

1� Housing Authority 2 0 0 6 - 0 7 A n n u a l R e p o r t © Department of Housing and Works 2007

Improve the way we deliver our services.

Increase social housing stock.

Regulate and build capacity in the community housing sector.

Maximise access to appropriate housing options including private rental, public rental, home ownership, Aboriginal home ownership, community housing and Government Regional Officers’ Housing (GROH).

Reduce overcrowding.

Support the governance arrangements in communities to improve housing and infrastructure management.

Increase Aboriginal home ownership.

•••

•

••

•

Build partnerships with communities.

Drive collaborative government and community approaches for improving communities.

Providing leadership on housing issues at a State and national level.

Deliver building and infrastructure programs in ways that meet our regulatory role, and stakeholders’ and client service needs.

Implement and apply the Strategic Asset Management Framework.

Develop and implement a flexible resourcing plan that meets our changing business needs.

••

•

•

•

•

Critical priorities for the next 12 months

North Perth Housing



Operational Structure

The Housing Authority is a statutory authority constituted under the Housing Act 1980.

The Authority was created on 1 July 2006 with the proclamation of the Machinery of Government (Miscellaneous Amendments) Act 2006. The Authority is responsible for facilitating the provision of housing and accommodation to Western Australians experiencing housing need. It provides services in five main areas:

SocialHousing(pages21–27)

Increase the availability of social housing

Improve the quality of social housing

Address homelessness

Address housing affordability

••••

AboriginalHousingandInfrastructure(pages28–30)

Increase housing for Aboriginal people in remote and town-based communities

•

LandandHousingDevelopment(pages30‑36)

Provide a continual supply of affordable land

Redevelop and refurbish public housing estates

Raise revenue to fund the Housing Authority’s social housing programs

••

•

HomeOwnership(page36‑37)

Encourage and enable home ownership through low deposit, affordable home ownership schemes

•

GovernmentRegionalOfficers’Housing(GROH)(pages38‑42)

The provision of government employees’ housing

•

The Housing Authority is accountable to the Minister for Housing and Works and, through the Minister, to Parliament.

The Housing Authority operates through the Department of Housing and Works (the ‘Department’) under one administrative structure, as shown on the page 15.

Agency Overview


Change in structure from 1 July 2006

The current administrative structure for the Department of Housing and Works and the Housing Authority came about on 1 July 2006 with the proclamation of the Machinery of Government (Miscellaneous Amendments) Act 2006.

The Act, which was aimed at streamlining government, merged the Government Employees’ Housing Authority (GEHA) with the State Housing Commission.

The newly merged agency was named the Housing Authority, and is governed by a Chief Executive Officer rather than a Board.

GEHA became a business unit within the Authority, assuming the new title Government Regional Officers’ Housing (GROH).

The Country Housing Authority and its Board also come under this structure and their activities are detailed in a separate annual report.

The Executive

The Housing Authority operates under the Department’s governance structure in which authority and accountability are shared between the Director General and the various sections (portfolios).

While the Director General is ultimately accountable for the full range of the Authority’s powers and functions, the portfolios – through the relevant General Manager/Deputy Director General – have considerable autonomy in day-to-day decision-making, allocating resources and determining priorities within the portfolios.

The departmental structure is shown on page 16.

HOUSING AUTHORITY PORTFOLIO ADMINISTRATIVE STRUCTURE

Minister for Housing and

Works

Department of Housing and

Works

Housing

Authority

Country Housing

Authority Board

Country Housing

Authority



Bob Mitchell DirectorGeneral

Office of the Director

General

Communications and Marketing

Building Industry Development

Fremantle Prison

HOUSINGSERVICES

Kerry Fijac Deputy Director General

Community HousingHousing PolicyLand and Housing DevelopmentGovernment Regional Officers’ Housing Country Housing AuthorityHome Ownership (including Keystart)

•••

•

•

•

WORKSAND

BUILDINGSERVICES

John Coles Deputy Director General

Major Works and ConstructionHousing ConstructionMajor Works Planning and Project ServicesPublic Works Policy, Strategy and LegislationArchitectural Services and Building StandardsCommercial Property ManagementMaintenance, Planning Programming, ContractingRegional Works ServicesRemote Indigenous Community Infrastructure and Essential Services

•

••

•

•

•

•

•

•

BUSINESSSERVICES

Rochelle Bradley General Manager

Human Resources Financial ServicesSecuritiesManagement Review and AuditInformation ServicesInformation ManagementContracts and Facilities Services

••••

•

•

•

ABORIGINALHOUSINGAND

INFRASTRUCTUREShane Hamilton

Executive Director

HOUSINGMANAGEMENT

SERVICES

(Shane Edmonds)

Tenancy Management and Support Property ManagementHousing Maintenance Services

•

•

•

REVIEWAND

REBUILD

Graeme Gammie General Manager

Oversee Functional ReviewDirect and Manage the Department’s Reform StrategiesManage Key Corporate Projects

CorporateDevelopment

Services

Business ImprovementStrategic PlanningLegislative Services

•

•

•

•

••

DEPARTMENTAL STRUCTURE


Responsible MinisterTheMinisterresponsiblefortheHousingAuthorityandtheDepartmentofHousingandWorksistheHonMichelleRobertsMLA,MinisterforEmploymentProtection;HousingandWorks;IndigenousAffairs;Heritage;LandInformation.

Legislation Administered TheHousingAuthorityisresponsibleforadministeringthefollowingActs:

Housing Act 1980Government Employees’

Housing Act 1964 Housing Loan Guarantee Act 1957

••

•

Our Core Values

Work together as a committed team

We support each other as we perform our individual roles in harmony with the strategic direction of the Department.

Act with respect

We remain conscious of the value of individuals in the way we behave towards each other and the Western Australian community.

Strive to be innovative

We develop new ideas and concepts and seek ways to convert them into practical forms that will increase our contribution to improving the welfare of the community.

Act with integrity

We earn and sustain public trust by performing our work conscientiously, reliably and transparently.

Embody professionalism

We strive to develop and apply our expertise and skills in all our endeavours.

Take pride in what we do

We respect and value the contributions of our staff and the Department’s overall contribution to the well being of the Western Australian community.

•

•

•

•

•

•

Our Desired Leadership Attributes

Set a clear, consistent and achievable direction;

Build and support our team to perform;

Challenge the way we do business;

Lead by example; and

Communicate clearly.

•

••••

VALUES AND LEADERSHIP



Performance Management Framework

The State Government’s plan for improving the quality of life of all Western Australians is described in Better Planning: Better Futures – A Framework for the Strategic Management of the Western Australian Public Sector released in September 2006.

The framework is built on five goals for Government relating to better services, jobs and economic development, lifestyle and the environment, regional development, and governance. The first two of these goals and their related strategic outcomes – a strong and vibrant community, and a level and mix of infrastructure that promotes economic growth – are central to the core business of the Authority.

The Authority, through the Department of Housing and Works, commenced a process of review and reform, an internally managed Functional Review of the clients we serve, the services we provide and the way they are delivered.

This review coincided with the proclamation of the Machinery of Government (Miscellaneous Amendments) Act 2006. This Act created the Housing Authority by merging the Government Employees’ Housing Authority (GEHA) and the State

Housing Commission (SHC). As a result, GEHA became a business unit within the Authority and was renamed Government Regional Officers’ Housing (GROH).

Before the Outcome Based Management structures of GEHA and SHC can be consolidated, the Functional Review needs to progress to a point where any new organisation and governance arrangements can be clarified.

As a result, this annual report details the Housing Authority’s achievements using the outcome statements and KPI’s used by the former GEHA and SHC.

While not varying its key performance indicators during the last reporting year, the Authority’s three strategic intentions (as outlined in the Future Directions section of this report) form the basis for internal strategic, portfolio and branch planning.

The diagram on page 19 illustrates the alignment of the Authority’s key outcomes, services and performance measures with its strategic intentions and the planning directions for Western Australia.

Our Contribution to Government Goals and Outcomes


Government of Western AustraliaBetterPlanning:BetterFutures

AFrameworkfortheStrategicManagementoftheWesternAustralianPublicSector

Goal �Lifestyle and the

Environment

MeasuresofEffectivenessthe extent to which the Housing Authority is responsive to the housing needs of eligible Western Australianswaiting times for accommodation (applicants housed)

•

•

Goal2:JobsandEconomicDevelopmentcreatingconditionsthatfosterastrong

economydeliveringmorejobs,opportunitiesandgreaterwealthforallWesternAustralians

Goal1:BetterServicesenhancingthequalityoflifeandwellbeing

ofallpeoplethroughoutWesternAustraliabyprovidinghighquality,accessibleservices

Goal 4Regional Development

Serviceland

ThepositioningofGROH’soutcomeandmeasuresinthePerformanceManagementFrameworkwillbedeterminedduringthe2007‑08financialyear

AGENCY STRATEGIC INTENTIONSMorePeopleinHousing

ImprovingBuildingand

Infrastructure

ImprovingAboriginal

Communities

Performance Management Framework

Servicehome loans

Servicerental housing

PrimaryStrategicOutcomeAlevelandmixofinfrastructurethat

promoteseconomicgrowth

PrimaryStrategicOutcomeAstrongandvibrantcommunity

Goal 5Governance and Public

Sector Improvement

DepartmentofHousingandWorksDesiredOutcome

government buildings and accommodation delivered, managed and maintained at agreed

standards

HousingAuthority’sDesiredOutcome

housing eligible Western Australians

MeasureofEfficiencyoperating cost per rental

property

MeasureofEfficiencyoperating cost per current loan

account

MeasureofEfficiencyoperating cost per lot

developed

Servicedelivery, management and maintenance of government buildings, projects and office

accommodation

MeasuresofEfficiencycost per million dollars of value of capital works projects deliveredcost per million dollars of gross rentals of buildings and office accommodation managedcost per million dollars of value of minor works and maintenance services delivered

•

•

•

MeasureofEffectivenessthe extent to which the Department

has delivered, managed and maintained government buildings and accommodation to agreed standards



The Authority’s contribution to the achievement of the five goals for Government is summarised below:

Goal1:BetterServices

Enhancing the quality of life and well being of all people throughout Western Australia by providing high quality, accessible services.

We provide a range of services to assist Western Australians maintain a ‘roof over their heads’ including:

supply of low cost housing and land;low deposit, affordable home ownership schemes;access to low cost social and private rental housing; counselling and support services; andthe provision of government employees’ housing.

Further information on these services is provided in the sections of the annual report dealing with Social Housing, Aboriginal Housing and Infrastructure, Land and Housing Development, Home Ownership and Government Regional Officers’ Housing (GROH).

••

•

••

Goal2:JobsandEconomicDevelopment

Creating conditions that foster a strong economy delivering more jobs, opportunities and greater wealth for all Western Australians.

We are helping provide jobs via our land development and housing construction activities.

We are also broadening training, employment and economic opportunities through:

our apprenticeship scheme, which continued to expand during 2006-07, so that we now have 63 metropolitan-based apprentices in six trades. the development of the department-wide Aboriginal Employment Strategy 2007-12 (AES) which aims to increase the number of Aboriginal employees across all levels.

The Authority, through its subsidiary Keystart, also issues millions of dollars to finance home construction. This helps finance numerous jobs in the building and associated industries.

•

•

Goal3:LifestyleandtheEnvironment

Protecting and enhancing the unique Western Australian lifestyle and ensuring sustainable management of the environment.

We are committed to reducing adverse impacts on the environment through waste avoidance and resource recovery. Included in this annual report are details of some of the Authority’s approaches to waste, energy, water, vehicles and travel.

Also included are details of the 5 Star Plus program, which has seen the introduction of two new building codes, the Water Use in Houses Code and the Energy Use in Houses Code which help improve the water and energy efficiency of new homes.

Goal5:GovernanceandPublicSectorImprovement

Developing and maintaining a skilled, diverse and ethical public sector serving the Government with consideration of the public interest.

We contribute to this Goal in a number of ways, including:Providing opportunities for the community to participate and make creative and effective contributions to our processes. For example, the Authority operates a number of advisory committees with representation from client advocacy and industry groups. Working with other government agencies, in areas such as the delivery of affordable housing strategies, to ensure whole-of-government approaches to decision-making.The Authority continues to build upon previous initiatives in developing its workforce through enhancements to the Learning and Development, Graduate Development and Change Management programs.The Authority continues to build on its commitment to diversity and equity practices through the Equal Opportunity Management Plan that was endorsed and registered with the Office of Equal Employment Opportunity. The Authority also has a strong delegations framework in which authority and accountability are shared across the organisation. The Authority also has a strong values-based system that promotes open and honest communication and integrity in the workplace.

•

•

•

•

•

20

Goal4:RegionalDevelopment

Ensuring that regional Western Australia is strong and vibrant.

The Authority has a strong presence in regional Western Australia with offices in the Southern, South West, Central/Goldfields, Mid West/Gascoyne, Pilbara, Kimberley and Wheatbelt areas. This provides:

enhanced decision-making based on a thorough understanding of regional issues; andeffective service delivery to regions that is responsive to the need of diverse communities.

All of the Authority’s services are delivered to the regions including housing construction, rental housing, and land development.

The Authority, through its subsidiary Keystart, also injects millions of dollars into the Western Australian economy – including country regions – to finance home construction.

•

•


Report on Operations

A key aim of the Housing Authority is to ensure that Western Australians have access to housing that is affordable, appropriate, safe, sustainable and secure. Some of our activities are delivered under our social housing programs (i.e. not-for-profit housing managed by the Government or community-based organisations).

We have a total of 39,651 housing properties throughout the State, including:

34,879 rental properties for individuals and families on low to moderate incomes. Subsidies ensure that tenants do not pay more than 25 per cent of their income in rent

1,918 units in joint venture projects with supporting organisations

872 properties for community housing groups

514 properties for crisis accommodation

30 properties for indigenous urban community housing

as well as 1,438 properties built in remote areas for Aboriginal people.

We also provide direct financial assistance, such as interest-free loans for bonds and ingoing fees, to individuals and families to access private rental housing.

•

•

•

•

•

•

Housing affordability issues remain a focus of the Housing Authority’s activities. The surge in housing prices makes it more challenging for first homeowners to enter the market, thereby contributing to the number of Western Australians experiencing ‘housing stress’. Affordability is also affected by the scarcity of labour services and the increasing cost of housing materials.

A number of strategies have been developed to contribute to meeting the housing needs of Western Australians now and in the future.

National Affordable Housing Initiatives

The Authority has led research and development initiatives as part of the national Housing Ministers’ Conference. Areas being looked at include not-for-profit and community housing, affordable private rental accommodation, access to home ownership and strategies to sustain and grow social housing stock.

A key objective is to supersede the current Commonwealth-State Housing Agreement 2003-08 with a more comprehensive National Housing Agreement to address housing affordability issues. The Authority now chairs the interstate Housing Ministers’ Advisory Committee which leads and resources this process.

•

Social HousingOverview



Public Rental Housing

As at 30 June 2007, over 67,280 individuals were accommodated in the Authority’s public rental housing program. A further 15,438 applicants were waiting for accommodation.

The Authority makes every effort to house priority applicants in three months. The increase in applicants with an urgent housing need, thus requiring priority assistance has meant that other applicants with less urgent circumstances can expect extended waiting times for public rental housing.

The 2006-07 year has been marked by a major review of public housing service delivery. The review is focused on how to improve service delivery in a challenging funding environment, at a time when the needs and demographics of our customers are fundamentally changing. There has also been an ongoing implementation of substantive equality principles into the Authority’s rental housing policies and procedures.

The Authority intends to address the increasing demand for social housing by implementing policies that will regulate the community housing sector. This will allow unprecedented growth in the number of properties managed by the sector, while at the same time reducing the waiting list for public housing.

With the injection of the State Community Housing Investment Program into social housing, and the increased effective and efficient use of funds under a regulated system, it is anticipated that the number of properties can be significantly increased, thereby increasing the viability of social housing and achieving DHW’s strategic intention of ‘more people in housing’.

To meet demand, the Authority has an ongoing Capital Works program to buy and build additional homes to increase its housing stock. In 2006-07, the Authority acquired 861 new properties through

•

construction and spot purchase, as well as undertaking refurbishment and bedsitter conversions on 536 existing dwellings.

Joyce Apartments, a 69-unit development in Goderich Street, East Perth, was completed in July 2006. This development features a mix of housing for seniors, single people and small family households. Its location is ideal for pedestrian and free public transport access to facilities such as Royal Perth Hospital, local shopping and entertainment.

The development of 20 residential units for families and single people, as well as four commercial properties at the corner of Hay Street and Tighe Street, Subiaco, was completed in September 2006. This multi-storey development provides affordable rental accommodation as part of the Government’s commitment to social housing in the Subiaco redevelopment area.

Thomas Apartments, a 37-unit, multi-storey development in Cheriton Street, Perth, adjacent to the East Perth Rail Terminal, was completed in June 2007. This development provides housing for seniors, single people, small family households and people with disabilities.

A range of new housing in country towns was also completed this year as part of the Regional Upgrade Strategy. This has given the Authority the opportunity to replace ageing sub-standard single houses with a variety of new housing types, which better respond to the changing demographics of applicants and existing tenants.

•

•

•

•

Subiaco Housing


The Housing Authority is involved in a joint venture project with Foundation Housing to construct 50 lodging house rooms, 18 apartments and six commercial units in Newcastle Street, Northbridge. This will be built on land provided by the East Perth Redevelopment Authority for social housing. The building, which will have two towers, is based on the design that won a competition held in 2005 and will include environmentally sustainable design features. Detailed design work has commenced.

The internal refurbishment of the 300-unit Brownlie Towers complex commenced in September 2003 and the Housing Authority managed the project in-house.

The internal refurbishment of the units was completed in September 2006. The internal works included a new fit-out with new kitchens, wet areas, floor coverings, painting and window treatments. Tenant participation was paramount with this project, and tenants were even encouraged to select a colour scheme of their choice.

The external upgrade commenced in April 2006. This included the installation of four new lifts, new roofs, the removal of asbestos on verandas and an external facelift for the apartments, including the adjoining car parks and shops. Construction of the lifts was completed in December 2006. The balance of the external works is estimated to be completed by December 2008.

The Midland Redevelopment Authority has agreed to sell land within the old Midland Workshops area to Foundation Housing at a discounted price for social housing. The Housing Authority has entered into a joint venture with Foundation Housing to build 22 two-and three-bedroom units for families on this site. Our Community Housing directorate will trial its new project management policy with this venture, with Foundation Housing managing the construction of the accommodation rather than the Authority, as has been the traditional process.

•

•

-

-

•

The Authority has purchased a 6.5 ha, 350-unit site for seniors at Dalyellup in the Shire of Capel, which it proposes to develop in partnership with the private sector. It is proposed this will have a mix of private housing, with 100 units of social housing.

In addition to the above, the Authority is currently examining the following options:

Pier St Perth: A multi-storey development of about 100 units

Geraldton: A seniors development of up to 100 units

South Metro: Three prospective sites that would each yield 100 units

The Midland Workshops: Redevelopment of one of the former workshop buildings for a seniors village of up to 200 units, with a mix of public and private residents.

Subject to the approval of the business case, and heritage issues, the Expression of Interest will be advertised early in 2008.

Total number of public rental properties sold and the value:

•

-

-

-

-

Year Public Rental Properties Sold

Value $ million

2001-02 669 68.622002-03 611 64.392003-04 578 67.262004-05 493 67.462005-06 431 84.702006-07 305 71.89

Total �,087 $424.�2 million



Highlights of 2006-07

861 new properties were bought or constructed during 2006-07 under the Authority’s public rental housing program.

A total of 4,732 units of accommodation were available under the Authority’s Community Housing programs in conjunction with non-profit organisations. These included units for persons with disabilities and units for crisis accommodation (including women and children escaping domestic violence, and homeless youth). During the year, 149 units were completed, with a further 138 units provided from public rental housing stock.

Rental Housing Outlook for 2007-08

In 2007-08, the Authority plans to acquire 617 new properties, out of a social housing program of 922. This will be done through construction and spot purchases, as well as undertaking refurbishments and bedsitter conversions on 605 existing properties. The Authority will deliver 250 extra social housing properties per year to deliver at least 1,000 extra social housing dwellings over the next four years.

The Authority will continue to focus its construction program in areas of highest demand. This will see more housing in Perth, Fremantle and major regional country towns. The Regional Upgrade Strategy will continue with 118 new units planned to commence and 50 existing units to be refurbished, which will benefit regional centres as well as smaller country towns.

In 2007-08 the Authority will be focused on maximising rental housing stock numbers.

Regional Upgrade Strategy

In 2004-05, the Authority commenced a Regional Upgrade Strategy to replace 800 properties and refurbish a further 200 properties in regional Western Australia over serveral years. The replacement and refurbishment of ageing properties is being undertaken in close consultation with the community.

•

•

Under the Regional Upgrade Strategy, 129 units were commenced and 152 units completed in 2006-07. These included the areas of Katanning, Manjimup, Northam, Wongan Hills, Kalgoorlie and Roebourne. In addition, the refurbishment of 75 units commenced and 66 were completed throughout the State.

Community Housing

The Housing Authority, through its Community Housing programs, works with non-profit community organisations, housing associations and Local Government to provide tenants with an alternative to renting in public or private rental markets.

During the year, 149 accommodation units were completed across WA under the Community Housing programs with a further 138 units provided from public rental housing stock. Of the 138 units, 75 units were provided for persons with disabilities and five for crisis accommodation (including women and children escaping domestic violence, and homeless youth).

These units are managed by organisations such as the Access Housing Association and Foundation Housing Limited. In total, the Authority had 4,732 units of accommodation at 30 June 2007 under its various Community Housing programs as detailed in the table on page 25.

Community Housing provides tenants with an alternative to renting

in public or private rental markets.


Regulation of the community housing sector will ensure that effective governance and administration of community housing providers will minimise the risk to public funds, while strategies of growth and consolidation of the sector will facilitate greater financial viability of community housing providers. This will give community housing providers greater access to private money, which in turn will generate more social housing.

Maintenance

Maintenance is carried out regularly on all our rental properties, either on a day-to-day basis, when the property is vacated, or through its refurbishment programs.

A total of $70.11 million was spent on maintenance and improvements to rental properties during the year.

This included:

$25.18 million on day-to-day maintenance;

$13.77 million on maintenance of vacated properties;

$15.95 million on refurbishments and improvements such as heating, ceiling fans, disability fittings and fencing;

$10.72 million on planned maintenance including internal and external painting;

$4.49 million on maintaining the grounds and gardens at housing complexes.

In addition, the Authority spent $4.61 million to renew or replace damaged items through insurance funding, compared to $4.20 million in 2005-06. Much of this cost was associated with damage from severe storm activity, vandalism and theft.

•••

•

•

JointVentureHousingProgram

Targets organisations that have resources to contribute to the development of rental accommodation options for people on low incomes.

1,918

LeaseforLifeJointVentures 126CommunityDisabilityHousingProgram

Provides community managed accommodation options for people with disabilities who require support to live independently in the community.

1,119

CommunityHousingProgram

This involves the purchase or construction of community managed rental housing for people on low to moderate incomes.

CommunityHousingProgramCommunityDisabilityHousingProgram

This involves the purchase or construction of community managed accommodation options for people with disabilities who require support to live independently in the community.

872

43

LodgingHouseAccommodation 140

CrisisAccommodationProgram

Provides capital funds to build and buy crisis service residential premises such as women’s refuges, night shelters, and emergency accommodation for youth.

514

Maintenanceiscarriedoutregularly

onallourrentalproperties



Bond Assistance The Authority’s Bond Assistance Loan Scheme was established to help people on low incomes access the private rental market by providing interest-free bond loans.

The very competitive private housing market has affected the number of bond loans issued this financial year as new customers delay their entry into the private rental market or customers remain in their existing accommodation.

Preparations were finalised for a range of major improvements to the scheme. Substantially increased loan amounts, payment of rent-in-advance to all bond applicants and increased income limits were all due to begin in July 2007, and will provide a significant boost to affordability in the private rental market.

The scheme remains popular with customers and the private real estate industry and included:

approval of a total 7,617 loans valued at $4.06 million;

loan repayments by customers in excess of $3.84 million; and

70 per cent of loan repayments ($2.7 million) made through direct deductions from Centrelink payments.

At 30 June 2007, there were 19,153 bond applicants paying off bond loans valued at $3.8 million.

IngoingFees(RentinAdvanceandLettingFee)

As part of the Authority’s commitment to reducing homelessness, ingoing fees were provided during the year to applicants on an as-needs basis.

Applicants are assessed on whether they can undertake a private rental lease, and were either rough sleepers or at risk of becoming homeless with no other accommodation options available.

•

•

•

There has been an increase in the need for this assistance to overcome affordability issues with increased rents in the private rental market.

During the year, 589 customers were assisted with a total of $209,445.

In January 2007, the Homelessness Strategies Branch entered a service agreement with Foundation Housing to assist Aboriginal people access private rental housing through the Private Rental Access Scheme (PRAS). The objective is to improve indigenous people’s access to the private rental market in the metropolitan area. Over 12 months, the scheme will enable up to 40 families to access housing in the private rental market by providing industry recognised tenancy references. It will also help counter negative stereotyping and help improve local real estate agents’ understanding of indigenous issues in relation to housing. It will also provide tenants with increased knowledge of their rights and responsibilities.

Additionally, the Homelessness Strategies Branch continued to deliver the pilot Private Rental Aboriginal Assistance Loan scheme (PRAAL). The objective of PRAAL is to assist Aboriginal people in private rental who are at risk of losing their tenancy and likely to become homeless, by providing a loan for up to six weeks to cover rental arrears.

The primary purpose of the Homeless Advisory Service is to act as a central contact point for homeless people literally without shelter (primary homeless) to find accommodation, and to assist secondary homeless to obtain assistance to seek their own accommodation. The Homeless Advisory Service liaises with relevant agencies, and liaises with regional offices and non-government accommodation services to ensure urgent accommodation is arranged.

Homeless Helpline Support Program: This program provides short-term support provided by a community-based organisation (RUAH) to help tenants establish themselves in the community. In some instances, this service is provided to tenants in our housing.

•

•

•

•


Appeals

Our appeals procedure is a three-tier process that allows customers to appeal against virtually any decision made by the Authority. Examples of appeals might include an application for priority accommodation, for bond assistance, a housing loan, rental arrears, or tenant liability for repairs.

APPEALS

Adverse decisionreviewed

by another departmental

officer

Regional Appeals

Committee

Housing Review Panel

Ifunresolved

Ifunresolved

All decisions that affect customers adversely are automatically reviewed by another departmental officer not involved in the original decision making process. The Regional Appeals Committee hears decisions that may be taken up with the Housing Review Panel, if unresolved.

The appeals process will be reviewed by an external consultant in the first half of 2007-08.

A total of 2,288 appeals were lodged with the Regional Appeals Committee, an increase of 12 per cent compared to the total of 2,043 lodged in 2005-06. Of these, 93 were either carried over or withdrawn and 148 were deemed ineligible. Additionally, 452 were resolved prior to hearing.

During the year, the Regional Appeals Committee determined 1,595 appeals as follows:

Decision TotalNo.ofAppeals %ofAppealsIn favour of appellant 542 34%

Dismissed 908 56.9%

Partially upheld 145 9.1%

A total of 221 appeals were lodged with the Housing Review Panel, which represented a decrease of 4.3 per cent compared to the total of 231 lodged in 2005-06. Of these, 12 were deemed ineligible. Additionally, nine were resolved prior to hearing. The panel determined 200 appeals as follows:

Decision TotalNo.ofAppeals %ofAppealsIn favour of appellant 94 47%

Dismissed 106 53%

Partially upheld 0 0%



Aboriginal Housing and InfrastructureAboriginal Housing We are committed to actively engaging with local people, communities, government and non-government organisations with the aim of achieving tangible and real improvements in Aboriginal housing.

With this in mind, we work closely with the Federal Government under the Indigenous Housing and Infrastructure Agreement to secure funding to implement improvements such as essential services and normalisation programs to help deliver more housing to address housing demand.

The Housing Authority is actively engaged in the national Indigenous housing discussions and will chair the Standing Committee on Indigenous Housing until September 2008.

Overview

We provide a range of housing programs and essential services to Aboriginal people in remote and town-based communities.

A number of strategies and initiatives support the Housing Authority’s commitment to improving outcomes for Indigenous people through better living conditions, access to home-ownership and helping create local economic benefits.

Environmental health, community development and sound asset management all depend on housing management practices and appropriate tenancy support services.

Meeting these aims forms a new approach to improving housing management. This has seen formal agreements strengthened with Indigenous housing organisations and the development of the Indigenous Housing Management System (IHMS), a computer system designed to support Indigenous housing organisations with the management of rental housing stock and tenancies.

A new approach to address community issues has seen the implementation of a pilot project at Halls Creek. The Halls Creek Better Life Project engages people at the local level, adopting a holistic and coordinated response to address complex social issues. Actions include new housing subdivisions, construction of new housing for the community and government workers, regularising and cleaning up town-based communities, refurbishing social housing, and improving social housing management.

Major Initiatives for 2006-07

The Housing Authority’s Housing Construction directorate, in partnership with Horizon Power, is implementing a large-scale electrical maintenance program to housing and infrastructure, installing power meters, and upgrading the system. This program ties in with the government aim to normalise essential services in Aboriginal communities to provide communities the same cost and quality of electrical service as urban WA. Under the Sustainability and Development programs:

Rental collection has increased from $4 million to more than $6 million and rental expenditure on maintenance has increased from $1 million to more than $4 million.

•

-


The IHMS computer program, computer equipment and training have been provided to 33 communities and organisations throughout the State.

Operational support funding has been provided to 33 Indigenous housing organisations and remote communities, primarily to assist them manage community housing.

The Housing Management and Support Policy (HMSP) was implemented this financial year, introducing a methodology to determine funding using a formula based on the total number of community houses managed.

Under the Aboriginal Home Loan Scheme, 39 Aboriginal families were assisted with $5.56 million.

Community Construction and Essential Services Program

Housing provided under the construction program and delivery of essential services programs in remote communities have delivered the following outcomes:

The 2006-07 financial year has seen the achievement of substantial milestones in the Town Reserves Regularisation Program, with other significant goals on the horizon for 2007-08. The Essential Services Branch, in conjunction with Horizon Power, has successfully regularised power services at the communities of Budulah, Burrinunga, Djimunda-Nguda, Guda Guda, Karmulinunga, Kurnangki, Lundja, Mindi Rardi and Nicholson Camp. The completion and commissioning date for the Nillir Irbanjin and Warrayu communities was July 2007. The regularisation of the power services ensures Horizon Power has responsibility for the infrastructure, with customers enjoying a uniform tariff and individual pre-payment metering, as well as qualifying for energy rebates.

-

-

-

•

•

The Town Reserves Regularisation Program of water services is also progressing, with tenders called for water and wastewater service upgrades to Kurnangki, Lundja, Mindi Rardi and Nicholson Camp in 2006-07. Construction will commence in 2007-08 and when complete, responsibility for the ongoing supply and maintenance of these services will be transferred to the Water Corporation.

Under the Remote Areas Essential Services Program (RAESP), a total of $14.6 million was spent on maintaining essential services (power, water and wastewater services) in 91 communities. This maintenance program has obvious environmental health benefits, along with some training and employment opportunities. The State Government has committed an additional $24 million (to be spent over four years), to meet the costs of providing this service.

Through the Community Construction program, 104 houses were commenced, with 77 completions and 12 spot purchases. Construction included commencement of a major project of 15 houses in Ardyaloon and 9 houses completed in Wangkatjungka.

Major upgrades commenced on 133 dwellings, and 112 were completed.

Tenders were let and work commenced on construction of new swimming pools in Warmun and Bidyadanga communities and construction works for administration buildings were completed in Looma and Marra Worra Worra, Fitzroy.

Urban Construction

In 2006-07, 11 accommodation units were commenced or acquired and 30 units were completed in urban and rural areas. Expenditure under the Urban Construction program was $5.9 million. Minor works to Aboriginal housing properties were undertaken with a total expenditure of $136,000.

•

•

•

•

•

�0 Housing Authority 2 0 0 6 - 0 7 A n n u a l R e p o r t © Department of Housing and Works 2007


Sustainability and Development

Under the Sustainability and Development program initiatives, the Housing Management program aims to improve the capacity, governance, sustainability and management of Indigenous housing organisations and Aboriginal communities to maintain and improve living conditions for Aboriginal people in Western Australia.

Housing management reforms are aimed at ensuring Indigenous housing is being managed appropriately. Key reform areas included ensuring that rent is collected; tenancy agreements are established; property condition inspections are undertaken; maintenance is conducted on housing; and community waitlists are created to identify housing need. The Housing Authority currently provides service providers with up to $1,500 per house for repairs and maintenance. These funds are matched by rental income.

Achievements in 2006-07 included:Housing management reform has increased rental collection from $4.2 million last year to approximately $6.1 million this year. Rental expenditure on maintenance has also increased, from $1.1 million last year to approximately $4.2 million this year. Marra Worra Worra, a regional housing service provider serving communities in the Fitzroy area, is an example of these improvements.

•

The Governance and Training program has been introduced to implement reforms to enhance governance within the Indigenous community housing sector. Organisations will be provided with assistance to meet specific needs to achieve more effective housing management outcomes.

Twenty community housing managers and officers are currently enrolled and studying for certificates in social housing.

The In-Home Practical Support Program is offered to improve the sustainability and longevity of Indigenous housing in remote and regional areas by developing the home living skills of Aboriginal people participating in the program. The program is administered and delivered by local Aboriginal people. The IHPSP connects with other programs and services to deliver a joined up approach to address environmental health, community development and social issues.

Tenancy Support programs deliver a culturally appropriate and effective advocacy service to Aboriginal tenants throughout the State. In partnership with the Tenancy Network, this focuses on providing a professional advocacy, advice and education service to Aboriginal public and private housing tenants.

•

•

•

•

Land and Housing DevelopmentOverviewThe Housing Authority owns vacant land throughout the State that is developed and released for sale by its business unit Land and Housing Development. The aim is to:

assist in supplying lots to construct public housing;

encourage home ownership by providing a continual supply of affordable land in quality and sustainable communities; and

raise revenue to fund the Housing Authority’s social housing programs.

•

•

•


Land and Housing Development also manages the New Living Program, which is the largest urban renewal initiative in Western Australia. The program focuses on undertaking major redevelopments and refurbishments of the Authority’s public housing estates, which were mostly constructed in the 1960s and 1970s. The objectives are to:

reduce the presence of public housing in areas of high public housing density;

refurbish houses for sale to both the public and existing public housing tenants; and

achieve better land utilisation through the re-subdivision or refurbishment of public housing and upgrading of streetscapes and open space.

Land and Housing Development’s Urban Redevelopment program involves the rationalisation of ageing public housing stock in areas close to existing services where zonings allow for subdivision.

Many of Land and Housing Development’s projects are undertaken as joint ventures with the private sector. It has become a leader in its field with many of its projects having won industry awards.

To date, the Ellenbrook project has received 27 awards at both State and national level, most recently the 2007* Urban Development Institute of Australia (UDIA) award for Best Affordable Development.

Dalyellup has received nine Planning Institute, Landscape Industries Association and UDIA awards.

Beeliar has received three awards, including Community Planning from the Royal Australian Planning Institute in 2001, the inaugural Judges Award from the WA Branch of the Urban Development Institute, and the 2005 Planet Ark Award.

Wellard is developing into a highly commended estate, winning nine State and national awards in 2005 and 2006.

Brighton Estate Butler has won one Planning Institute award and five UDIA awards in 2001, 2002, 2004 and 2007 and, most recently the development won a project management award for the Brighton Shed in 2007.

Somerly, at Clarkson, won the 2006 UDIA Award for Best Affordable Development, and the 2007 UDIA Award for Best Residential Development of 250 Lots or More.

(*NB: with regard to UDIA awards, ‘2007’ refers to awards given in September for the period 2006-07.)

Joint VenturesJoint ventures continue to be a major feature of the Authority’s development approach, and the focus of Land and Housing Development’s development and marketing program.

Eleven joint venture projects are currently underway. Cabinet approved a 12th joint venture – at Brookdale – in October 2006 and the Heads of Agreement document was signed in April 2007. Subject to approvals, the first lots (from an eventual total of 2,600 lots) could be released mid 2008-09.

The Authority is currently seeking submissions for the joint venture of its landholdings at Harrisdale.

•

•

•

Somerly



The Authority, through the Department of Housing and Works, entered into a joint venture with Heath Development Company in February 2007 to develop and market jointly owned land at Bayonet Head, located approximately six kilometres from the Albany town site. The development comprises approximately 206 hectares of land and will provide some 2,500 residential lots and several serviced commercial sites, including shopping and mixed use lots.

The development supports the Government’s commitment to supplying land, including lots for affordable housing, first homebuyers and public housing in regional areas.

The first sales commenced in December 2006 with the release of 89 lots averaging $203,000.

It is anticipated, in consultation with the WA Planning Commission, to fast track a further 500 lots in order to ensure the continued development of around 200 lots a year.

For the 2006-07 financial year, joint ventures sold a total of 2,083 lots, earning a profit of $91.36 million. A proportion of lots sold in 2006-07 were produced in 2005-06. A total of 2,306 lots were produced in 2006-07 across the 11 joint ventures, as shown in the following table:

Joint Venture 2006-07 Sales

2006-07 Yields

Albany – Oyster Harbour 1 0Albany – Woodrise 0 0Banksia Grove 0 0Beeliar - Meve 50 95Butler – Brighton 526 477Clarkson – Somerly 591 559Dalyellup 153 273Ellenbrook 455 502Geraldton – Seacrest 100 100Quinns – Brighton Beachside 0 0Wellard 207 300TOTAL 2,083 2,306

The Authority will appoint private sector partners to jointly develop Land and Housing Development holdings at Harrisdale during 2007-08. Plans are progressing for longer term projects at Albion Town (Henley Brook), Golden Bay (Rockingham) and Amarillo (Karnup).

Land and Housing Development’s 2007-08 development program is expected to provide 2,044 lots through its joint venture projects, with forecast sales of 2,203.

Weareinvolvedin12jointventureswithprivateindustry.Theseinclude

redevelopmentatBrookdalewhichwillresultin2,600lotsbeing

releasedinthenearfuture.

Meve

Brighton

�� Housing Authority 2 0 0 6 - 0 7 A n n u a l R e p o r t © Department of Housing and Works 2007

Land SalesThe Authority sells land from the internal development of its broad-hectare land holdings. Revenue of $60.82 million was raised through the sale of 301 lots throughout the Perth metropolitan area, as well as in Bunbury. The Orelia (Windsor Hills) release was completed in 2006-07.

In the next financial year major land releases will continue in the Perth metropolitan area, including Armadale, Brookdale, Bertram, and Swan View. Land releases in Bunbury (Glen Iris), Albany and other regional areas will continue to help meet demand for land outside Perth.

Rental Sales ProgramThe Rental Sales Scheme is open to eligible tenants who are interested in purchasing their rental properties. Under this scheme, purchasers are eligible for a grant of up to $3,000 in fee assistance for stamp duty and settlement costs. Purchasers are also eligible for a discount in recognition of capital improvements to the property that they carried out as a tenant.

During the year, 41 rental properties worth just over $9.14 million were sold to tenants and a further 34 such properties worth just over $8.95 million using Goodstart shared equity finance. In addition, 45 vacant ex-rental properties that were surplus to requirements were sold during the year to the public for slightly more than $4.83 million.

New Living/Urban Renewal ProgramDuring the year, 200 residential dwellings were refurbished for sale across the State. Of these, 172 were sold to provide income of $44.1 million. The sales market continues to be extremely buoyant and followed a similar trend to that of the last few years.

A further 337 properties were refurbished for retention as rental housing. In addition, 69 vacant lots of land were sold throughout the State,

earning $13.08 million income. Some $8.13 million was spent during the year on land development to produce 80 vacant lots and infrastructure enhancements, including the upgrading of parks and streetscapes.

South Hedland New Living Project

South Hedland’s $50 million five year New Living Project is the largest non-metropolitan urban renewal project in Western Australia. It is being completed in the midst of the resource industry boom that is responsible for the acute shortage of land and accommodation in the Pilbara.

It is estimated that over the life of the project, 480 homes will be refurbished. Of these, 293 homes will be retained by the Housing Authority and 187 homes will be sold to the public, thus providing excellent home ownership opportunities. The project also has an extensive land development program which will provide affordable land for the construction of homes in South Hedland. Currently, the Authority has a development program that potentially will develop 455 lots subject to demand within the next 12 months, with the first three subdivisions yielding 84 lots nearing completion.

Extensive infrastructure upgrades will also be undertaken to improve parks, streetscapes and public open space. Community development programs are underway and are aimed at improving the lifestyle of the residents of South Hedland.

Significant activity is again planned for the New Living program during 2007-08. It is estimated that 230 dwellings will be refurbished for sale under the program at a cost of nearly $18.7 million. Private buyers are expected to purchase 221 of the dwellings, raising $55.8 million. A further 399 properties will be refurbished for retention for public rental housing. And $39.43 million will be spent developing 523 vacant lots. It is estimated that 345 lots will be sold, raising revenue of $58.96 million.

•



Outlook for 2007-08Subdivision works are nearing completion for the first three subdivisions (totalling 84 lots) for the South Hedland New Living Project. A land development program with the potential to develop 455 lots (subject to demand) is planned for 2007-08. It is forecast that 83 homes will be refurbished during the year, with 34 homes to be sold. Infrastructure works have commenced in conjunction with the Town of Port Hedland and the first major park upgrade at Shay Gap Park will be completed.

A total of 36 three-bedroom, two-bathroom dwellings constructed by Mirvac-Fini as part of the Coolbellup New Living project will be completed in early 2007-08. This development, known as Lennox, incorporates sustainable principles.

Civil works for the subdivision of the Maniana precinct in Queens Park will commence in early 2007-08. It is anticipated that some 129 vacant lots will be progressively released for sale during the year. The construction of builders’ display homes has commenced and it is anticipated they will be opened in the first half of 2007-08.

Significant activity is also forecast for the largest of the New Living projects, the New North. It is anticipated that 150 dwellings will be refurbished. Of these, some 76 dwellings will be sold. The large-scale demolition of the 60-unit complex known as Hainsworth Mews in Girrawheen will be undertaken, to make way for a new subdivision.

Urban Redevelopment ProgramIn 2006-07, the redevelopment project in Willagee was completed. A total of 10 lots were sold which produced an income of $2.87 million. The majority of lots in the project area were offered for sale to the public. The Urban Redevelopment Program also saw the development of 282 dwelling unit equivalents, most of which were group housing sites retained to satisfy departmental demand.

•

•

•

•

( ‘Dwelling unit equivalents’ refers to the number of dwellings that a lot can produce, e.g. a triplex site is one lot that equates to three dwelling unit equivalents.)

In addition, a total of 13 rental properties were offered for sale in the metropolitan area which raised $4.87 million.

Affordable HousingIn late 2006, the Housing Authority commenced an Innovation in Affordable Housing program to facilitate the building of 50 innovative homes. The program will provide the home building industry with an opportunity to showcase new building products and techniques and will investigate benefits that can be achieved from building innovation including:

Improved affordability through lower construction costs;

Lower maintenance and management costs;

Improved energy efficiency; and

Production efficiency allowing shorter construction times.

The first stage of housing under this program is now underway in the metropolitan area and is expected to be completed by December 2007. Planning for the expansion of this program into regional areas is now underway, to further examine the benefits that can be achieved in other locations.

•

•••

Coolbellup New Living Project


The Land and Housing Development business unit is set to commence development of at least 200 affordable homes for First Start clients in 2007-08 in the metropolitan area and several major regional centres. These homes will be located in some of our internal land developments as well as in some of its joint ventures. Within the joint ventures projects, the homes will be developed in partnership with the joint venture partner.

At this stage, it is planned that these homes will be available in the joint ventures at Ellenbrook and Brighton and in our internal developments at Banksia Grove, Brookdale (Chiltern), Bertram, Armadale (Westfield), McKail (Albany) and Glen Iris (Bunbury).

The homes will be developed in groups on a combination of contiguous and multi-dwelling lots to allow economies of scale and provide coordinated and attractive streetscapes. The designs for all the homes will also be subject to architectural review to ensure they adopt the fundamentals of energy efficient design.

The homes will target a range of prices below $365,000, with the first becoming available for pre-purchase ‘off the plan’ in the first half of 2007-08.

Planning and Land Acquisition

The Housing Authority acquired the former Royal Australian Air Force transmitter station at West Swan for $33.65 million. The Authority had been negotiating with the Department of Defence since the early 1990s to purchase the site. The site is strategically located in terms of providing a continuous supply of affordable land. The Housing Authority will retain 110 ha, which will complement the Authority’s existing 148 ha landholdings at Henley Brook. These sites combine to form the Albion Town project and will produce a total of some 2,840 residential dwellings. Approximately 140 hectares of the former Defence site is reserved for Bush Forever/parks and

•

recreation, and has been onsold to the WA Planning Commission with the primary aim of conserving bushland.

At Albany, the Authority purchased approximately 35 ha in partnership with a private developer to consolidate its broad-hectare holding at Bayonet Head. The land will assist in supplying land over the next five to 10 years.

Land was acquired at Hammond Park in conjunction with a private developer to complement a future joint venture land development project.

The Authority also acquired 99 single house lots and 36 group housing sites across the State. About 65 per cent of these lots were sourced from the Authority’s joint venture projects at Ellenbrook, Butler, Clarkson, Dalyellup and Geraldton. About one third of the lots are in regional towns.

The Amarillo (Keralup) Master Plan - The Authority has produced a master plan for the future Amarillo project and has received government endorsement. The State Government has committed $2.7 million dollars to allow detailed studies to be undertaken. The detailed studies will include a strategic environmental assessment, integrated transport study and economic development study. Tenders have been called to undertake the strategic environmental assessment, with the other studies to follow shortly after. The project has the potential to meet long-term land supply in the southern metropolitan area through a fully intergrated urban community that could house up to 90,000 people.

Following the release of the master plan, a poll to find an alternative name was conducted through The West Australian newspaper. A panel consisting of the Minister for Housing and Works, Michelle Roberts; Governor Ken Michael; and urban strategist Charles Landry chose Keralup as the new name from 300 entries received. The name Keralup reflects the area’s Indigenous heritage.

•

•

•

•



At McKail in Albany, the Authority has obtained approval for an innovative subdivision to provide a range of lots and houses. The Authority will work with local builders to deliver built-form housing on cottage lots.

Other AchievementsThe Eastern Horizons New Living project was completed this year. Since this project’s commencement in 1999, the suburb has been transformed. Property values have increased significantly, crime rates have declined and the amenity of housing and infrastructure have been significantly improved.

The New North New Living project won the 2006 Urban Development Institute of Australia (UDIA) award for excellence in the Urban Renewal category and was entered in the UDIA’s national awards.

Internal refurbishment of 69 units at Harler Place, Mosman Park, was completed in

•

•

•

•

January 2007. The external upgrade was also completed this year. The units are occupied by our tenants.

The demolition of the old Maniana precinct in Queens Park continued during 2006-07. Almost 272 dwellings were demolished and subdivision of this site will create 278 new vacant lots for sale. The first stage of the Wharf Street landscaping and entrance statement enhancement was also completed under the Quattro Queens Park project.

The South Hedland project saw the sales office officially opened this year. The refurbishment program at South Hedland has commenced with 20 properties underway, and the land subdivision component has commenced.

Civil works were completed at the former Mia Mia site in Balga and 60 lots were released for sale to the public.

•

•

•

Home OwnershipOverview

Keystart, the home finance division of the Authority, assists West Australians achieve their dream of home ownership through low deposit, affordable home ownership schemes.

Keystart provides full home ownership and shared equity schemes to assist low to moderate income earners.

The schemes include:

Keystart Low Deposit Loan – to assist West Australians purchase 100 per cent of a property.

The First Start Shared Equity Scheme launched in February 2007 assists low to moderate income earners to own their own homes. With families and couples, the Housing Authority will purchase up to 40 per cent equity in the home with the client purchasing 60 per cent. With single

•

•

applicants, the Authority will purchase up to 30 per cent equity with the client buying 70 per cent. Clients can increase their share when circumstances permit.

Goodstart Shared Equity Scheme – assists public housing rental tenants make the transition to owning their own home.

Access Shared Equity Scheme – assists people with disabilities purchase a home.

Aboriginal Shared Equity Scheme – for Aboriginal and Torres Strait Islanders.

Sole Parent Shared Equity Scheme – assists a sole parent who has incurred a drop in family income as a result of bereavement or separation.

The Restart Scheme to assist private sector borrowers who risk losing their home as a result of a short-term drop in income.

•

•

•

•

•


Highlights 2006-07

First Start Shared Equity Scheme

The rapid increase in property prices during the previous financial year made it more difficult for low to moderate income first homebuyers to enter the property market. To overcome this, the Premier announced the First Start Shared Equity Scheme in February 2007. Since its launch, the scheme received more than 4,000 expressions of interest and Keystart sent out more than 1,500 loan applications. By the end of the year, 419 of these applications were returned and are being assessed, with 144 approved and a further 153 issued with pre-approval letters to purchase a property.

Keystart Home Loan Scheme

Despite the rapid property price rises over the past two years which had an adverse affect on affordability and the level of demand for Keystart’s full home ownership product, the Keystart Scheme approved 3,155 new and increased loans amounting to $381 million.

Details include:

a total of 1,061 new loans were provided for first homeowners;

$256 million approved to purchase 1,338 established homes during the year;

57 million approved for new construction, involving 226 new building starts that provided more jobs for West Australians; and

$154 million approved for regional WA, assisting 1,407 families.

•

•

•

•

Other Loan Schemes

During the year, Goodstart assisted 68 rental tenants and applicants on our rental waiting list into home ownership.

Our Access Loan Scheme for people with disabilities assisted 31 families.

The Aboriginal Home Ownership Scheme helped 39 families make the transition from rental to home ownership.

The Sole Parent Scheme approved 10 loans, and Restart approved the refinancing of four loans.

Outlook 2007-08

The high property prices experienced during the past two years are expected to place a greater emphasis on the First Start Shared Equity and other shared equity schemes. The higher prices will continue to have a negative effect on borrower affordability, therefore lending in 2007-08 is expected to be at similar levels to 2006-07.

The Authority anticipates providing an estimated $420 million across all its home loan schemes to assist more than 3,142 families into home ownership. This is estimated to involve:

Keystart, being the largest scheme, is expected to provide 2,000 loans;

First Start is expected to reach its target of 1,000 loans;

the GoodStart Scheme will continue to assist eligible Housing Authority tenants to purchase either their current rental property or an alternative property. The Scheme is expected to assist a further 70 families in 2007-08;

the Access Scheme, which caters for people with a disability or who care for a person with a disability, will continue to assist people to purchase a home or modify an existing home. During 2007-08, the scheme is expected to assist 36 families;

the Aboriginal Scheme, 30 families; and

the Sole Parent and Restart Schemes, six families.

•

•

•

•

•

•

•

•

••

A total of 1,061 new loans were provided for first homeowners under

the Keystart scheme. The scheme also approved $256 million in loans

to purchase 1,338 established homes. And $57 million was approved for

226 new building starts.



Government Regional Officers’ Housing (GROH)OverviewThis year has seen many significant changes. Following the introduction of Machinery of Government legislation, the Government Employees’ Housing Authority (GEHA) lost its statutory authority status and became Government Regional Officers’ Housing (GROH).

A review into GROH’s operational and legislative status was also initiated, to explore ways to better integrate GROH as a business unit of the Authority.

The purpose of the review was to:

identify opportunities for integration of GROH into the Housing Authority and to identify and remove any duplication of services; and

determine the most effective arrangements, and funding models, for the delivery of GROH services, including opportunities for external partnerships.

The review included extensive stakeholder consultation with client agencies and unions. The Department’s Review and Rebuild Steering Committee endorsed the final review report in late May 2007.

The major recommendations made by the GROH review include regionalisation of all GROH tenancy management functions, and the introduction of tenancy agreements for all new GROH residents from later this year.

The review aims to provide a higher quality and more responsive service in regional areas. The introduction of tenancy agreements will also result in clearly defined roles and responsibilities for residents and landlord.

•

•

These recommendations will result in a push of operational functions to the regions and also pave the way for the merging of the Government Employees’ Housing Act 1964 and the Housing Act 1980 when the Housing Act is reviewed in the next five years.

The change from authority status has also meant that the GEHA Board has been abolished. In its place, in order to maintain close contact with our major stakeholders, GROH management meets bi-monthly with major client agencies, and quarterly with the Client Consultative Committee which includes representatives from the three major unions. Their ongoing support and contribution to GROH’s planning processes is greatly appreciated.

GROH’s challenges this year have been unprecedented. Higher demand for housing for government employees in regional WA has outstripped the largest Capital Works program since the late 1990s and GROH’s ability to acquire leased properties.

GROHproperty‑Kimberley


With the increase in demand for accommodation as a result of the current sustained economic growth, as well as the rapid growth in regional investment and employment, GROH continues to service more than 60 State government agencies and manages approximately 4,500 units of accommodation in more than 250 country locations throughout Western Australia.

Two important factors that play a role in determining the provision of government employees’ housing throughout Western Australia are GROH’s 2005-08 Strategic Plan, and the Department of Housing and Works’ Statement of Strategic Intentions and Priorities.

Construction

Overview

Western Australia is currently experiencing unprecedented growth in resource development, particularly in the Pilbara region, as well as in the Kimberley, Mid West and Esperance areas. In response, GROH seeks to maximise its construction program through its operational and sales revenue and debt funding.

The State Government approved a loan of $60 million in response to this economic growth for GROH to purchase land and construct 161 homes in these regions over a three-year period.

Capital Works and Acquisitions

Construction commenced on 58 new homes within the Capital Works program, another 34 properties were completed, and a further 25 properties acquired by spot purchase (see Table 1, page 40).

Expenditure for capital works and acquisitions during the 2006-07 financial year totalled $43.21 million. This included:

$ millionConstruction 22.47

Purchase of existing houses 12.83

Vacant land acquisitions 6.06

Crown Reserve acquisitions 1.07

Capitalised administration fees 0.78

TOTAL $4�.21 million

GROHproperty‑Kimberley

GROHproperty‑Wickham



Town Housing Under Construction as

�0-06-2007

Housing Purchased

during 2006-07

Construction Completed

during 2006-07

Bidyadanga (Gordon Inquiry) 3*Boddington 2Broome 10Camballin 4*Cue 1Dalwallinu 1Djarindjin (Gordon Inquiry) 5*Esperance 1 3Fitzroy Crossing 6 2Halls Creek 6 4*Hedland (South) 11# 4*Jigalong 6Karratha 11 2Katanning 6*Kununurra 4Moora 2Morawa 3Narrogin 6Newman 3Nullagine 2Pingelly 1Ravensthorpe 3Tammin 1Wangkatjunka 2*Warakurna (Gordon Inquiry) 3*Warmun (Gordon Inquiry) 2*Wickham 1*Wyndham 2Total Units 64 25 �4

NOTE: GROH commenced the construction of 58 units in the 2006-07 financial year.

These units are included in the above figures.

# 6 of these dwellings commenced in previous financial years

* These projects commenced in previous financial years

Table 1: Summary of Construction and Purchase of Housing for 2006-07


Response to the Gordon Inquiry The Government’s response to the Gordon Inquiry involves the provision of government facilities and housing for staff to work within Aboriginal communities to deliver targeted programs.

Eight communities were selected for the initial phase and GROH is constructing a total of 29 dwellings in these locations.

During the two years 2004-06, GROH completed 13 dwellings in the communities of Kalumburu (3), Balgo (3) Warburton (7). A further 13 dwellings were completed in the communities of Djarindjin (5), Bidyadanga (3), Warakurna (3) and Warmun (2) during 2007.

There are a further three more dwellings under construction in the community of Jigalong which will be completed during the first half of 2007-08.

Property ManagementGROH is responsible for managing a total portfolio of 4,560 units of accommodation, of which 2,812 are owned and 1,748 sourced from the private market.

Property management services are delivered through the network of our regional offices across the State.

GROH is responsible for maintaining the residential accommodation it owns to ensure that the properties are safe, clean and habitable. It provides a range of building maintenance, minor works and property services through the zone maintenance contracts of the Authority.

Refurbishment ProgramIn accordance with its strategic plan, GROH refurbishes accommodation to extend the useful life of the property. In 2006-07, GROH spent a total of $4.8 million on refurbishments State-wide, of which $3 million was spent in the Pilbara.

SalesThe sales program is primarily made up of properties that fit into one or more of the following criteria:

are located in areas where there is no current or (foreseeable) future demand for employee housing;

have reached the end of their useful lives;

are not cost-effective to maintain or refurbish; or

have no redevelopment potential.

Funds generated from the sales program are used to construct new housing in areas of demand.

The total sales for 2006-07 were $3.46 million, made up of 21 surplus dwellings. A total of three tenant sales were finalised in 2006-07, valued at $343,000.

LeasingWhile GROH endeavours to satisfy most requests for accommodation from its own housing stock, it cannot meet all the requirements for additional accommodation without the assistance of the private market. As a result, GROH either leases existing properties that meet its requirements, or encourages property developers and local governments to develop new housing to lease to GROH.

There was a net increase of 98 leased properties in 2006-07, resulting in a total of 1,748 leased properties State-wide at 30 June, 2007, representing approximately 38 per cent of GROH’s rental portfolio.

•

••

•



Investors ProgramUnder this initiative, local councils and private investors continued to show interest in constructing properties and leasing them to GROH on a long-term basis. This program supplements GROH’s Capital Works program by accelerating the replacement of older housing stock, meeting additional demand and improving the amenity of accommodation for government employees.

By offering long-term leases and competitive rent structures based on the Cost Recovery Rent model and market rents, GROH has attracted investment and increased available housing in a number of areas, particularly in ‘non-market’ towns where property investment is not normally viable.

Other Affordable Housing InitiativesPeel Region Affordable Housing Steering Group The Peel Region continues to be one of the fastest growing regions in Western Australia, with its population growth over the past five years outstripping that of the Perth metropolitan area.

According to the Australian Bureau of Statistics (ABS), the region’s five-year growth rate of 4.6 per cent in 2001-06 was the highest of all the regions in Western Australia, and well above the State average of 1.5 per cent.

The combination of increasing employment opportunities, land and housing developments, new freeway links, the passenger rail extension and the planned Perth to Bunbury highway are all factors associated with this growth.

In early 2006, the Peel Region’s State Government Agency Leaders’ group identified the limitations in affordable housing in the Peel region and the subsequent impacts on family and community well being as a regional priority.

In response, the Peel Region Affordable Housing Steering Group was formed in late 2006. The steering group is endorsed by Housing and Works Minister Michelle Roberts MLA, and chaired by Dr Sally Talbot, South West MLC. Members of the steering group include State government agencies, Local Government, Shelter WA, the Peel Community Development Group and industry peak bodies.

The objectives are:

the development of an affordable housing plan for Peel region to guide all levels of government and industry on priorities and actions for optimising the match of housing and demand in the short, medium and long term; and

identifying specific opportunities for increasing the supply of affordable housing arising from developments associated with the Southern Suburbs Rail and other infrastructure projects.

•

•


Significant Issues and Trends

The Western Australian housing system continues to be affected by population growth. It is estimated that the State’s population will increase by 60 per cent to reach 3.2 million people in 2051. This means that significantly more social and private dwellings will be required to meet demand, increasing pressure on homebuyer affordability and the construction sector. Changing demographics, such as the increase of singles and couples households, mean that the housing sector will need to become more flexible in the range of housing types provided.

Additional social and economic pressures include:

an ageing population;

rapid increases in house and land prices;

poor housing outcomes for Indigenous people;

the changing demographics of the community both in location and ethnicity;

increases in construction costs; and

the loss of low-cost private rental housing.

These factors are leading to increasing numbers of Western Australians experiencing housing stress. The Authority also caters for a high proportion of people with disabilities, and this demand will grow as the population ages.

Homelessness also remains a major challenge.

•••

•

••

Western Australia is currently experiencing an unprecedented economic growth with the 2.7 per cent unemployment figure being the lowest on record. The building industry is working at capacity with demand for housing and infrastructure outstripping supply. This presents a great challenge for the Department because it has resulted in significant increases in building costs. It has also led to reductions in the number of contractors tendering for capital works projects.

Another big challenge will be to deliver the State’s largest ever Capital Works program - totalling nearly $5 billion - given the current shortage of suppliers. The Department has a total of $4 billion in projects earmarked for 2007-08; and the Authority has a further $909 million worth of capital works in the pipeline for the same period.

While acknowledging its need to be responsive to the pressures in its operating environment, the Authority also recognises that it has an important role to play in supporting the Government’s vision for a sustainable Western Australia.

The construction, procurement, management and maintenance of government-owned and leased buildings, and land development are undertaken with sustainability as a primary objective.

Our strong social commitment – demonstrated by our services involving affordable home finance, social housing and Aboriginal housing and infrastructure – also supports sustainability.



Review and RebuildA departmental review was initiated in September 2006. Consistent with the Guidelines for Public Sector Reviews and Evaluations (2005), the review is considering the most appropriate roles, responsibilities, organisational structures and funding models to ensure effective delivery of the Department’s services and outcomes.

The Review and Rebuild branch was established to undertake a staged program of reviews across the Department’s business units, which is expected to be completed in 2007-08. It is expected that the benefits of the review will be a departmental structure that better delivers the housing services and works and building services required by Government.

Together with promoting best practice procurement processes, the review is expected to improve:

housing outcomes for the community;

service delivery through better alignment of products and services with customers’ needs;

financial and people management; and

partnerships with our colleagues in government and business and the broader community.

A Review Steering Committee has been established including executives from our Department; Stuart Hicks (an independent reviewer); and senior executives Michelle Reynolds (Assistant Director General) and Anthony Kannis (Executive Director, Agency Resources), representing the Department of the Premier and Cabinet and the Department of Treasury and Finance. The committee meets regularly to oversee progress of the review and endorse recommended strategies for the Department to play its part in building better communities.

Further details on Review and Rebuild projects can be found on the Department’s website at: http://.dhw.wa.gov.au/585_1320.asp

••

••

http://www.dhw.wa.gov.au/585_1320.asp


Disclosures and Legal Compliance

Audit and Risk Management Audit CommitteeOur Audit Committee is a four-member advisory committee established to assist the Accountable Authority (the Director General) discharge his responsibilities under Section 53 of the Financial Management Act 2006. The Director General chairs the Committee.

The role of the our Audit Committee was extended on 1 July 2006 (i.e. with the proclamation of the Machinery of Government (Miscellaneous Amendments) Act 2006 and the creation of the Housing Authority), to address reviews on the operations and activities of Government Regional Officers’ Housing. The Committee met four times during the year.

InternalAuditFunctionIn accordance with the requirements of the Financial Management Act 2006, the Management Review and Audit Branch (which incorporates internal audit services) operates as an independent appraisal activity.

The branch aims to ensure that all activities are carried out effectively and efficiently in accordance with sound business practices and all legal requirements.

Comprehensive audit plans are developed annually that address the key business risks of the agency.



Delegation of AuthorityIn most circumstances, under the Housing Act 1980, authority to undertake transactions is conferred on the Accountable Authority and/or the Minister for Housing and Works. Section 13 of the Act, however, allows the Accountable Authority (i.e. the Director General) to delegate any of his powers or functions under the Act.

With the proclamation of the Machinery of Government (Miscellaneous Amendments) Act 2006 and the creation of the Housing Authority, the power of the Director General to delegate has been extended to address the operations and activities of Government Regional Officers’ Housing.

An appropriate delegation framework has been put in place, and a comprehensive register established to record those formal delegations. Through delegation, the Director General does not need to be approached for approval of the many essentially administrative matters associated with the day-to-day operations and activities of the Housing Authority.

Risk Management FunctionThe Housing Authority has in place an appropriate risk management framework which is supported by arrangements to identify, analyse, evaluate and formulate treatment plans to manage risk.

In July 2006, the Authority undertook to collaborate with RiskCover (i.e. a business division of the Insurance Commission of Western Australia) to provide ongoing risk management training throughout the agency and to utilise the RiskCover RiskBase risk register.

The Authority created a Corporate and Environmental Risk position in December 2006 to manage this function, which is supported by the internal audit function, which provides guidance and support in implementing risk management strategies.

The Authority also undertook a special risk project this year to develop comprehensive business continuity plans to address a possible influenza pandemic affecting the State and the ability of the agency through depleted staff resources, to continue to deliver its critical business services. This culminated in the Authority successfully taking part in the Department of Premier and Cabinet’s Pandemic Influenza Desktop Exercise held at the Perth Convention Centre in December 2006.

Ministerial DirectivesSection 11 of the Housing Act 1980 empowers the Minister to give directions to the Housing Authority with respect to its functions, powers and duties, either generally or with respect to act on those directions.

No Ministerial directives were received during 2006-07.


Staffing Levels

The Housing Authority had 1,023 staff at 30 June 2007. The following table indicates staff numbers for the Authority, which also includes staff provided to the Country Housing Authority.

Employees 2005-06 2006-07Permanent Full-time 764 795

Part-time 104 107

Contract Full-time 124 111Part-time 8 7

Casual 0 0Trainee 12 2Other 0 1Total 1,012 1,023

Further details on staffing policies, recruitment, development and equal employment outcomes can be found on Pages 55 - 58 of this annual report.

Occupational Safety And Health

Employee safety and welfare is a high priority for the Authority with steps being taken to promote Occupational Safety and Health across the workforce.

A considerable number of employees work in the field, with some of these also travelling to remote areas. A sub-group of the Safety Committee was formed to review these particular issues and to update work practices and procedures for these employees in remote areas.

Other initiatives for the wider workforce included the calling of a tender for an online induction training system, the introduction of safety and health and injury management training for all supervisory roles, and the review of emergency evacuation procedures across all offices.

The Authority continued its focus on injury management and rehabilitation in its approach to claims management, and continued to support officers returning to work from extended absences due to ill-health.

Industrial Relations

There were no industrial matters during this year leading employees to stop work.

Pricing Policies of Services Provided

Rent

Rent charged to tenants is determined from time to time by the Authority and approved by the Minister for Housing and Works under Section 30(1) of the Housing Act 1980.

Each property is allotted a market rent based on information provided by the Valuer General’s Office.

Tenants are required to pay no more than 25 per cent of assessable household income in rent. Tenants who are unable to pay the full market rent receive a rental concession. Tenants who receive a rental concession and were in occupation before 12 July 1997, pay 23 per cent of their assessable household income in rent, and those who moved in after that date pay 25 per cent.

Other Financial Disclosures



Major Capital Works ProgramsThe Authority’s 2006-07 suite of capital works programs was estimated at over $1 billion, comprised mainly of the construction and purchase of new dwellings, land acquisition and development, and loans to homebuyers.

Details of estimates (as published in the 2006-07 Budget Papers) and actual expenditure across the capital works programs are shown in the table below.

Explanations have been provided for variations for actual expenditure that differ by over $2 million and 10 per cent greater/less than the estimated cost.

HOUSINGProgram Estimated

Cost ($’000)Actual ($’000)

Variance ($’000)

Explanation

Community Housing 5,000 6,760 1,760

Computer Hardware and Software

3,305 3,108 (197)

Construction and Purchase of Houses

174,205 172,205 (2,000)

Crisis Accommodation 3,988 6,824 2,836 The expenditure increased from the original estimate due to the early acquisition of a number of properties, including a 10-bedroom lodging house in Esperance.

Estate Improvement Land Redevelopment

6,485 6,503 18

Land* 130,425 181,255 50,830 Increase largely due to additional funds allocated to strategic land purchases. Also expenditure increased at Ellenbrook due to increased scope of works and greater development costs.

Loans to Homebuyers** 680,872 380,901 (299,971) Variance due to the rapid increase in property prices over the past two years having an adverse affect on borrower affordability. The private sector is also assisting more people by adopting Keystart’s low deposit criteria.

Minor Works 4,479 2,783 (1,696)

Offices and Shops 2,000 2,124 124

Other 216 285 69

TOTAL 1,010,�75 762,748 (248,227)

* Comprises Acquisition, Development, Holding Costs and Redevelopment which were disaggregated in the 2006-07 Budget Papers

** Comprises Keystart and Goodstart Loan Schemes which were disaggregated in the 2006-07 Budget Papers


GOVERNMENT REGIONAL OFFICERS’ HOUSINGProgram Estimated

Cost ($’000)Actual ($’000)

Variance ($’000)

Explanation

Construction and Purchase of Accommodation***

33,910 43,210 9,300 Variance due to increased activity of the capital works program resulting from the government policy initiatives in the North of the State, in particular Halls Creek. An extra $2.88 million in government capital works funding was provided during 2006-07 for this purpose. In addition, there have been significant increases in construction costs in the remote areas.

*** Includes vacant land and Crown Reserve acquisitions.

Commentary on the Authority’s 2006-07 Capital Works Program

The following comments provide a reconciliation of actual completions / commencements to those forecasted in the budget papers.

As published in the 2006-07 Budget Papers, the Authority planned to procure 821 new properties through construction and spot purchase, as well as undertake refurbishment and bedsitter conversions on 634 existing properties.

As shown in the table on pages 50 and 51 of the annual report, the Housing Authority completed 1,012 units and 540 refurbishments and bedsitters conversions (this does not include the Aboriginal Housing Communities and Indigenous Community Housing Program figures). Some projects that were originally expected to complete in 2005-06 carried over due to the climate in the building industry, and were completed in 2006-07, which led to the increase in completions over the projection.

The Authority expected to commence 200 new units and refurbish 50 existing units through the Regional Upgrade Strategy and achieved 129 new units and 75 refurbishments. The shortfall in new unit commencements was due to builder availability in some country towns and the climate in the building industry.

The Mental Health strategy had an allocation of $6 million to commence 30 units, with $5.2 million spent and 33 units were commenced.

The Authority’s land development activities were expected to yield 3,101 lots. Actual yield results to June 30 were 2,975 – of which 2,306 lots came from joint ventures. The shortfall in lot production is mainly due to projects at Stratton, Swan View and Armadale being deferred to 2007-08.



Construction, Spot Purchase, Refurbishment and Bedsitter ConversionsThe following table provides information on construction, spot purchases, refurbishments and bedsitter conversions undertaken under the Authority’s various capital works programs.

The table includes details of the number of units commenced and completed during 2006-07.

Carryover completions reflect units that commenced in 2006-07 or in a previous financial year but were still under construction or refurbishment at 30 June 2007.

Carryover expenditure shows the committed funds required to complete those units still under construction or refurbishment at 30 June 2007.

Commenced Completed Expenditure ($m)

Carryover Completions

Carryover Expenditure

($m)CONSTRUCTION AND SPOT PURCHASEPublic Rental Housing

General Rental 554 831Community Disability Housing Program

33 43

Mental Health Strategy 33 0Joint Venture 62 38Resident Funded Joint Venture

0 23

House and Land for Sale 4 2Total 686 937 162.687 899 93.296

Aboriginal Housing – Urban 11 �0 5.858 11 2.5�8Indigenous Community Housing Program

12 12 �.�61 0 0

Aboriginal Housing–CommunitiesCommission Funded 104 77 27.084 80 23.795FaCSIA Funded 0 0 0.020 0 0Total 104 77 27.104 80 2�.7�5

Community Housing

Community Housing Program 10 13 5.066 11 0.648Crisis Accommodation Program

24 32 6.102 0 0.149

Total �4 45 11.168 11 0.7�7TOTAL 847 1,101 210.778 1,001 120.426

Table continued on page 51.


Table continued from page 50.

Commenced Completed Expenditure ($m)

Carryover Completions

Carryover Expenditure

($m)REFURBISHMENT and BEDSITTER CONVERSIONSPublic Rental Housing

Refurbishments 138 195 6.032 27 0.816Bedsitter Conversions 3 4 2.644 0 2.700Total 141 1�� 8.676 27 �.516

New Living (Retained Properties)Refurbishments 295 337 20.152 113 2.347Bedsitter Conversions 0 0 0 0 0Total 2�5 ��7 20.152 11� 2.�47

Aboriginal Housing - Communities – Refurbishments

1�� 112 10.6�7 �8 6.612

Roebourne Enhancement Program – Refurbishments

2 0 0.0�2 2 0.0�7

Community HousingCommunity Housing Program

3 4 0.123 0 0

Crisis Accommodation Program

0 0 0.053 0 0

Total � 4 0.176 0 0TOTAL 574 652 ��.67� 240 12.572GRAND TOTAL 1,421 1,75� 250.451 1,241 1�2.��8

NOTES:

Expenditure on Public Rental Housing and Aboriginal Urban Housing excludes capitalised administration costs.

Expenditure on FaCSIA funded units also includes work other than dwelling construction.

Expenditure on Public Rental Housing bedsitter conversions includes other upgrade works.

Expenditure on Aboriginal Community Housing refurbishments includes other works.

Expenditure on Community Housing Program and Crisis Accommodation Program Refurbishments includes other upgrade and maintenance works.

1.

2.

3.

4.

5.



Public Rental Housing Statistics

RENTAL WAITING LIST BY CUSTOMER TYPE

2006-07 2005-06 2004-05 2003-04 2002-03

Family 8,6�� 7,750 7,495 7,190 7,268Senior Single 1,�46 1,928 1,771 1,615 1,600Senior Couple 7�� 372 306 280 286Singles 4,060 3,730 3,553 3,703 3,827TOTAL 15,4�8 13,780 13,125 12,788 12,981

RENTAL WAITING LIST BY BEDROOM ENTITLEMENT

2006-07 2005-06 2004-05 2003-04 2002-03

2 Bedroom family 4,278 3,907 3,904 3,800 3,8593 Bedroom family �,165 2,805 2,770 2,660 2,7574 Bedroom family �� 818 691 640 5645+ Bedroom family 257 220 130 90 88Senior Single 1,�46 1,928 1,771 1,615 1,600Senior Couple 7�� 372 306 280 286Singles 4,060 3,730 3,553 3,703 3,827TOTAL 15,4�8 13,780 13,125 12,788 12,981

NEW TENANCIES BY CUSTOMER TYPE 2006-07 2005-06 2004-05 2003-04 2002-03

Family 1,�00 1,950 2,233 2,542 2,891Senior Single 660 698 622 797 764Senior Couple 245 139 194 246 213Singles 822 917 1,022 1,098 1,291TOTAL �,627 3,704 4,071 4,683 5,159

RENTS 2006-07 2005-06 2004-05 2003-04 2002-03

Rebated 26,27� 26,951 27,307 28,085 28,142Full Rent 7,11� 5,949 5,754 5,058 5,004TOTAL ��,��8 32,900 33,061 33,143 33,146


Public Rental Housing Statistics (continued)

TENANT INCOME SOURCES 2006-07 2005-06 2004-05 2003-04 2002-03

Age Pension 2�.5% 24.0% 23.7% 23.7% 22.8%Disability Support Pension 20.8% 21.0% 20.5% 20.2% 19.9%

Parenting Payment Single 1�.8% 15.5% 16.7% 17.5% 17.6%Newstart Allowance 6.0% 6.2% 6.5% 7.1% 7.6%Veteran Services 1.7% 1.8% 2% 2.1% 2.2%Low Wage Income 5.�% 6.0% 5.7% 6.4% 6.7%Other 7.0% 7.4% 7.5% 7.9% 8.1%Full Rent 21.�% 18.1% 17.4% 15.1% 15.1%

RENTAL ARREARS 2006-07 2005-06 2004-05 2003-04 2002-03

Average Arrears per Account $17.0� $15.44 $15.49 $16.26 $22.54Percentage Accounts in Arrears �.0% 9.0% 8.46% 13.69% 18.52%

RENTAL STOCK BY BEDROOM NUMBER 2006-07 2005-06 2004-05 2003-04 2002-03

Bedsitter 1�8 225 267 298 3721 Bedroom 8,075 7,925 7,935 7,809 7,6502 Bedroom 10,187 9,942 9,860 9,791 9,7103 Bedroom 1�,180 13,264 13,686 14,089 14,3054 Bedroom 2,742 2,668 2,653 2,604 2,5685+ Bedroom 4�7 476 469 447 420TOTAL �4,87� 34,500 34,870 35,038 35,025

RENTAL STOCK BY DWELLING TYPE 2006-07 2005-06 2004-05 2003-04 2002/03

House 12,12� 12,213 12,633 12,591 12,852Duplex 4,454 4,446 4,556 4,654 4,652Medium-High Density (2) 18,�02 17,841 17,681 17,793 17,521TOTAL �4,87� 34,500 34,870 35,038 35,025

BUILDING COMMENCEMENTS (�) BY CUSTOMER TYPE

2006-07 2005-06 2004-05 2003-04 2002-03

Family 485 535 541 522 530Singles �� 159 167 143 267Seniors 10� 159 181 262 200TOTAL 6�� 853 889 927 997



LAND PRODUCTION 2006-07 2005-06 2004-05 2003-04 2002-03Lots Produced (4) 2,�75 3,283 2,838 1,979 2,132

Public Rental Housing Statistics (continued)

NOTES: All stock numbers relate to public housing and Aboriginal rental housing dwellings only:

Percentages are rounded;

Medium-high density: townhouses, flats and apartments;

Commencements: Letter of Acceptance, excludes purchase housing (homes built for sale); includes spot purchase (acquisitions) and joint ventures; and

Lots produced include land development and redevelopment, estates improvement and joint ventures.

1.

2.

3.

4.

Governance DisclosuresSubsidiariesKeystart Loans Limited (‘Keystart’) is a special purpose nominal company controlled by the Housing Authority. It provides low deposit, affordable home ownership schemes.

Keystart acts as trustee for the Keystart Housing Scheme Trust and the Homeswest Loan Scheme Trust. It also controls Keystart Bonds Limited, Keystart Scheme Management Pty Ltd, Keystart Support Pty Ltd, and Keystart Support (Subsidiary) Pty Ltd.

Keystart is managed by a Board of Directors, comprising:

Directors’ Indemnity Insurance

Following proclamation of the Machinery of Government (Miscellaneous Amendments) Act 2006, the Boards of the State Housing Commission and the Government Employees’ Housing Authority were abolished. To ensure that past Commissioners, Board Members and the two Authorities were protected in accordance with the Statute of Limitations, an insurance premium of $54,870 was paid to indemnify the Commissioners and Board Members against liabilities under sections 13 and 14 of the Statutory Corporations (Liability of Directors) Act 1996.

An amount of $13,155 was also paid to indemnify the Keystart Board of Directors.

Disclosure of Pecuniary InterestSenior officers of the Authority do not have an interest in any existing or proposed contracts made with the Authority.

Lloyd GuthreyKerry Fijac

••

David ButlerMike Bonney

••

Ian TaylorRaymond Chadwick

••

Rochelle Bradley•


Other Legal RequirementsEmployment and Industrial Relations

Staffing Policies, Recruitment, Development and Equal Employment Outcomes

Workforce Development

The Authority’s ongoing commitment to developing its workforce saw progress in a number of areas:

Equity and Diversity

The Authority continued to build on its commitment to diversity and equity practices through the development of the Equal Opportunity Management Plan that was endorsed and registered with the Office of Equal Employment Opportunity (EEO).

General awareness sessions were presented across the metropolitan and regional areas, including two specific sessions for line managers on Managing EEO Complaints.

A recruitment drive for EEO contact officers resulted in the appointment of an additional eight contact officers who received preliminary training. A network of 16 fully trained EEO contact officers is now in place, including six in regional areas.

The Authority also worked with the Equal Opportunity Commission on the project scope and selection of appropriate providers for Indigenous cross-cultural awareness training that will take place in 2007-08.

Progress in meeting Equity TargetsDate: 30/06/07 Organisation Code: 137

Agency: Department of Housing and Works

% Actual Representation

Equity Index

2007 Objective set by agency

% above or below objective

Women’s Management Tiers 2 and 3 33.3 53 35.1 -1.8

People from culturally diverse backgrounds 10.5 59 9.7 0.8

Indigenous Australians 7.1 62 7.5 -0.4

People with disabilities 4.2 24 4.4 -0.2

Youth 6 n/a 6.6 -0.6

(A meaningful equity index can not be calculated for a diversity group with less than 10 individuals)

•



What was the initiative?

Reference in current plan

What was achieved?

What difference has it made to

the agency?

How was the initiative evaluated?

Provide support for staff seeking information or assistance with EEO issues by providing a quarterly newsletter and effective Contact Officer network.

1. Strategy 2.C in 2006–09 EEO Management Plan (recently upgraded to 2007–10 plan and registered with the OEEO July 2007).

EEO Contact Officer recruitment drive resulted in Contact Officers doubling from eight to 16 and a two-day comprehensive training course was completed in May 2007.

New HR newsletter includes an EEO section and is posted on the InfoNET every two months. This includes an up-to-date Contact Officer list and a new link has been installed on the InfoNET.

Higher profile of Contact Officers and raised awareness of expected behaviours.

HR information is more easily accessible with up-to-date information being regularly circulated to all staff.

Feedback from participants in the form of workshop evaluation forms.

There is a raised level of awareness particularly in regional offices.

All Contact Officers are identifiable by EEO Contact Officer name badges.

Nil formal complaints in the past 12 months. All issues have been resolved at the local level in consultation with HR Consultant EEO.

More indigenous Accommodation Managers to be recruited.

2. Strategy 4B.2 2006-09 EEO Management Plan.

Seventeen applications were received for the job advertisement for indigenous Accommodation Managers. Three applicants were successful.

Increased level of indigenous staff at customer contact level.

The increased number of indigenous front line staff in regional offices brings a better understanding of customers’ needs.

Aboriginal Cultural Awareness Training.

3. Strategy 2.A1 in 2006-09 Plan, Strategy 3.2 in the current EEO plan and reference in additional information on Page 3 of the EEO Management Plan.

This training is region specific with local presenters, so it is more relevant to our clients.

Priority training has been given to staff with the most direct contact with our Indigenous clients.

Evaluation forms indicate the course had created a great deal of awareness and comprehension, highlighted where the process of ill feeling comes from, and most respondents said they had learnt a lot about Aboriginal peoples’ history that they weren’t aware of previously.

Key EEO initiatives implemented in 2006-07


The Authority, through the Department, has implemented training needs analyses for both metro and regional staff. Data from these will help formulate a strategic training plan. We have also recognised training needs in the areas of mental health and cultural awareness and will continue to focus on equipping all staff with EEO updates on a monthly basis.

The proposed Aboriginal Employment Strategy (AES) and Implementation Plan 2007–12 will focus our efforts to ensure that it is seen as a role model in the employment and retention of Aboriginal people.

Indigenous Employment

Our Aboriginal Employment Strategy aims to employ more Aboriginal employees across all levels.

This five-year strategy incorporates the existing and successful Aboriginal Traineeship Program. The program is currently being enhanced to provide ongoing employment opportunities for up to 30 per cent of completing trainees in each annual intake.

The reviewed program also provides for extended training and career development activities to assist trainees in progressing their careers within the Department, or throughout the Public Sector. This year, 13 opportunities were identified for trainees throughout the metropolitan area and regional branches. On completion of their traineeships, the majority of these trainees were retained in either substantive or fixed term positions.

During the year, a program was launched to recruit Aboriginal people to become Accommodation Managers. Participants were provided with a structured training program, together with the opportunity to undertake studies towards a Certificate IV in Social Housing.

•

A mentoring program is being developed for participants in the Accommodation Manager and Traineeship Programs via a network of Aboriginal and non-Aboriginal employees. Trained mentors provide ongoing workplace support, encouragement and guidance to program participants.

Indigenous employees comprise 7.1 per cent of our total workforce.

Graduate Development Program

The Authority, through the Department of Housing and Works, endorsed a pilot Graduate Development Program for accounting/finance graduates. The program has been reviewed and expanded, along with an initial commitment for two graduate project officers within the Land and Housing Development area.

The two-year comprehensive development program, with a third year return-of-service commitment, is a strategic investment towards the retention of essential corporate knowledge and experience.

Learning and Development

The Authority also continued to build upon previous initiatives in the development of its workforce through enhancements to the Learning and Development, Graduate Development and Change Management programs.

•

•

We have developed an Aboriginal

Employment Strategy to increase work opportunities for

Indigenous people. Indigenous employees

now comprise 7.1 per cent of our total

workforce.



This year, the Authority renewed its focus on reviewing the learning needs of staff with a view to building a more strategic focus in our learning and development programs.

A competency profile was developed, based on our Values and Leadership statements and Statement of Strategic Intent. This was mainly developed to inform and underpin a learning needs survey conducted with the Works and Building Services and Business Services portfolios. Earlier, a housing workforce training needs analysis was also conducted and recommendations from both surveys are currently being incorporated into an overarching training plan linked to strategic intentions. Further work will be done into the new business year on identifying and implementing ways in which the competency profile can be adapted to support staff performance measurement and capacity building.

In addition to the specific strategic focus on competencies and building learning and development framework, the Authority maintained a program of general training and learning and development courses including:

job application and interview training to support those affected by the major organisational change program being undertaken;

a tailored project management program for Construction Services and Land and Housing Development staff to further develop their project management skills;

access to training conducted by the Green Building Council of Australia (Green Star Accredited Professional) to support the use of the Green Star environmental rating tool in the construction and design of commercial buildings;

staff selection skills training to support a new more streamlined approach to recruitment;

-

-

-

-

safety awareness training (the mandatory Worksafe ’Blue Card’) for those required to regularly visit construction sites;

piloting a new accredited course for public housing staff, Mental Health First Aid;

skills development for housing managers and supervisors to support the move to a more people-centred culture;

’train the trainer’ support for public housing workers with responsibility to train and induct new staff;

a comprehensive induction program for new client service officers in Housing Management Services;

a contract law training program for managers in the Securities and Conveyancing branch;

continued commitment to our mandatory Equal Opportunity and Substantive Equality training program; and

a scholarship program involving 39 staff in disciplines such as commerce, finance, project management, building, and public housing policy.

Change Management Program

A new initiative during 2006 was the establishment of the Change Management unit to provide advice and support services to the Review and Rebuild program in relation to people issues. The unit’s charter is to work with employees at all levels providing change awareness sessions, individual counselling and coaching services. The unit also has responsibility for the proactive management and placement of displaced employees.

-

-

-

-

-

-

-

-

•


AdvertisingIn accordance with the disclosures required Section 175ZE of the Electoral Act 1907, the Authority has incurred the following expenditure on advertising and market research organisations:

Disability Access and Inclusion Plan OutcomesThe Authority aims to provide services that are accessible and meet the housing requirements of people with disabilities. The coordinator of Disability and Seniors Services plays a key role in meeting this commitment by information sharing and promotion of initiatives, staff education and policy input.

The Disability and Senior Services Coordinator has continued to be involved in internal and external committees and projects throughout the year which affect people with disabilities. Examples include the Substantive Equality Reference Group (internal), the Seniors Policy Working Group (internal), People With Exceptionally Complex Needs Working Group, Mental Health Strategy, Council of Australian Governments Mental Health Group and the Independent Living Research Steering Committee.

The coordinator has also put together the Authority’s 2007-12 Disability Access and Inclusion Plan (DAIP), which comes into effect in August 2007. The DAIP builds on the strategies of the Disability Services Plan 2004.

Provision of Housing for People with DisabilitiesThe Authority builds, modifies and purchases rental homes for its public rental stock to meet the housing requirements of people with disabilities. In 2006-07, $22.5 million was spent on housing (mobility homes) for people with disabilities. The Authority has established a good stock of rental housing to meet a diverse range of disability needs over the last 10 years and will continue to build new mobility homes to meet demand.

The Access Home Loan Scheme provides home loans specifically tailored to people with disabilities or families with a household member with a disability. The scheme is administered through our Home Ownership branch and in 2006-07, 31 loans to the value of $5.7 million were provided to applicants. The loans can be used to build, buy or modify an existing property to meet individual needs.

Housing is also provided through the Community Disability Housing program. Details on the achievements of this program are in the Community Housing section of this report.

Advertising and Market Research

Value ($)

Advertising Agencies- Bowtell Clarke & Yole 204,527.51

- 303 Advertising Pty Ltd 62,693.80

- Linc Integrated Marketing & Co. 78,110.52

Market Research Organisations NilPolling Organisations NilDirect Mail Organisations NilMedia Advertising Organisations- Marketforce Productions 300,721.76

- Media Decisions WA 89,336.53

- Mills Wilson Media Consultants 6,672.60

TOTAL $742,062.72

Caption

TheAuthorityhasestablishedagoodstockofrentalhousingtomeetadiverse

rangeofdisabilityneeds.



Disability Access and Inclusion PlanThe Authority is currently finalising its new Disability Access and Inclusion Plan (DAIP), which comes into effect from 1 August 2007. The Authority has, however, been meeting the DAIP’s required outcomes by meeting the strategies in its Disability Service Plan 2004. The following is a summary of the initiatives undertaken.

60

Outcome1: Peoplewithdisabilitieshavethesameopportunitiesasotherpeopletoaccessthe servicesof,andanyeventsorganisedby,apublicauthority.The Authority provides housing to people with disabilities under the Community Disability Housing program and by mainstream rental housing construction, spot purchase and modifications. Housing is either built to a generic design to meet ongoing demand or is custom built to meet individual circumstances.

As part of its commitment to the Mental Health Housing Strategy, the Authority also provides housing to people with mental illness under the Community Disability Housing program.

The Authority’s Access Home Loans, tailored for people with disabilities, also help people access affordable home ownership.

Outcome2: Peoplewithdisabilitieshavethesameopportunitiesasotherpeopletoaccessthe buildingsandotherfacilitiesofapublicauthority.The Authority has a policy that all new homes will be built using the principles of ‘visitability’. Visitability ensures people with a mobility disability are able to access and use the main functional areas of a home.

Our buildings and customer service areas are accessible to people with disabilities and reviews of facilities are ongoing to ensure improved accessibility. Adaptations are made as required.

We also evaluate annually the design and functionality of any housing we build for people with disabilities to ensure continual improvement under the Community Disability Housing program.

Outcome3: Peoplewithdisabilitiesreceiveinformationfromapublicauthorityinaformatthatwill enablethemtoaccesstheinformationasreadilyasotherpeopleareabletoaccessit.

Publications promoting our services and programs are being reviewed to ensure they are written in plain English and presented in a readable format.

The Disability Services coordinator attends forums and meetings with disability groups and service users to provide information face to face. This provides opportunities for people with disabilities to get information in a format that suits their requirements.

The Authority also provides information in alternative formats on request.

Outcome4: Peoplewithdisabilitiesreceivethesamelevelandqualityofservicefromthestaffofa publicauthorityasotherpeoplereceivefromthestaffofthatpublicauthority.

Our staff receive disability awareness and focus training that increases their understanding of the issues affecting people with disabilities. This training ensures staff respond sensitively and provide quality services to people with disabilities.

The Authority also has Equal Employment Opportunity contact officers around the State to respond to issues, act as advocates for, and provide advice and support to people with disabilities and other groups in the workplace.

Outcome5: Peoplewithdisabilitieshavethesameopportunitiesasotherpeopletomake complaintstoapublicauthority.

A new customer feedback system has been implemented which enables people of all abilities to lodge complaints to the Authority. Complaints can be lodged verbally, in writing and online.

Outcome6: Peoplewithdisabilitieshavethesameopportunitiesasotherpeopletoparticipatein anypublicconsultationbyapublicauthority.

People with disabilities, their advocates and disability groups are involved in consultations and briefings on buildings, policies and programs that might affect them.

Public consultations are conducted according to the Disability Services Commission’s ’Creating Accessible Events’ checklist.


Compliance with Public Sector Standards and Ethical CodesThe Authority complies with the Public Sector Management Act 1994, S31 (1).

Information on the revised Public Sector Code of Ethics was made available to all employees via the Authority’s InfoNET system.

Information was provided to all new employees on the revised Public Sector Code of Ethics via the Authority’s induction program.

Procedures have been put in place to comply with the Public Sector Standards in Human Resources Management, the Western Australian Public Sector Code of Ethics and the Department of Housing and Works’ Code of Conduct.

The applications made for breach of standards review and the corresponding outcomes for the reporting period are detailed in the table below:

Complianceissues

Significantactiontakentomonitorandensurecompliance

Public Sector Standards (PSS)

Information about standards is included on InfoNET.Raising awareness of the standards is included in our induction program. Materials are provided to all participants.Awareness raising articles on the standards are a regular feature in the bi-monthly HR newsletter.Awareness raising workshops on the standards were conducted in November-December 2006.Transactions revised by external auditor as a quality assurance process.A review of the recruitment, selection and appointment process commenced.Ongoing training in the recruitment, selection and appointment process was provided to panel members to ensure compliance with relevant standards.Ongoing training was provided to contact officers to ensure compliance with relevant standards.Six breach claims were lodged, of which five are pending review. One breach claim was dismissed.

••

•

•

•••

•

•

WA Code of Ethics

An article to raise awareness was published in the HR newsletter to advise employees of the revised Public Sector Code of Ethics.A presentation on the Public Sector Code of Ethics was included in the Department’s induction program. Materials were provided to all participants.An ethics training course was piloted for managers and supervisors. The agency released its values and leadership principles, embodying the Public Sector Code of Ethics, to all employees. Values and Leadership requirements are being added to all JDFs.A requirement to act ethically is included in all JDFs.Nil reports of non compliance with the WA Code of Ethics.

•

•

••

•••

Agency Code of Conduct

The agency’s Code of Conduct is accessible on InfoNET and hard copies have been circulated to all new employees. The existing Code of Conduct is listed on InfoNET under ‘Policies’ for easy access by all staff.The Department of Housing and Works Code of Conduct is currently being revised and when completed, a hard copy will be provided to each staff member. Enquiries were held into suspected breaches of the Department’s Code of Conduct as required.

•

•

•

•



Recordkeeping Plans/Information Management

The Authority complies with the State Records Act 2000.

A review of Information Management was undertaken during this period resulting in a new structure to manage the transition to an electronic environment and improve the level of service delivery.

There are a number of activities in the Information Management area covering:

preparation to commence the rollout of an electronic document management system to the Department;

development of a recordkeeping training plan;

an upgrade to the new version of the recordkeeping system (TRIM);

development of an application to manage the capture of digital photographs into the recordkeeping system; and

development of a process to scan incoming mail.

In early 2006, the Authority (through the Department of Housing and Works) procured the online Recordkeeping Awareness Training program, a recordkeeping induction program mandatory for all staff members. This was successfully rolled out in September 2006. A total of 1,482 staff (our total workforce including Department of Housing and Works and Country Housing Authority) are enrolled in the program: 968 staff have completed the training, 90 more staff have started, and 424 staff have yet to commence.

Government Policy RequirementsCorruption Prevention

Detection and prevention of fraud, corruption and misconduct is addressed under specific business units’ risk management activities, with appropriate reporting procedures established.

The Authority has appropriate risk management policies in place that incorporate strategies to minimise the risk of fraud, misconduct and corruption. This includes policies and guidelines on:

These – in conjunction with audits of contractors, internal audit reviews and stringent controls on financial payments – have helped develop a culture of awareness relating to potential fraud, corruption and misconduct.

•

•••

•

information access;

information security – access controls;

corrupt and improper conduct;

official hospitality;

conflict of interest;

•••••

privacy and confidentiality;

staff induction;

gifts and benefits; and

segregation of duties in relation to payments and other internal controls.

••••


Substantive Equality The Authority is committed to implementing substantive equality in all aspects of its service delivery.

Substantive equality recognises that entitlements, opportunities and access are not equally distributed throughout the community and there may be barriers to service provision resulting in unequal outcomes for particular groups.

It acknowledges that where service delivery agencies tailor services to the needs of the majority, other people with different needs may miss out on essential services. Equal treatment, therefore, is not about treating people the same; it is about treating people differently in order to cater for different needs.

The Authority has demonstrated its commitment by commencing an initial needs and impacts assessment of policies, practices and procedures within the directorate of Housing Management Services (Rental Operations).

This has been a collaborative process between the Equal Opportunity Commission (EOC) and the Department . The implementation process has been conducted according to Level 2 of the Policy Framework for Substantive Equality.

As part of Level 2, the Authority is conducting an initial screening and focused on information gathering and analysis of the policies, practices and procedures that relate to rental tenancies for Indigenous and ethnic groups. Although the Mirrabooka and Northam offices were selected as sites to assess policy against the actual practice, only the Mirrabooka office has been involved. An initial screening is being undertaken to determine any adverse or unintended impact on different client groups. This includes how clients come to know of, and experience the services delivered by the Department.

A full assessment will only be conducted if the initial screening reveals a major adverse impact.

The Authority has progressed well and is currently working within Level 2 of the framework and has achieved the following three components of Level 1:

negotiated the scope for implementation;

developed a corporate and executive policy on substantive equality; and

established an organisational structure to facilitate and support implementation of the framework.

Implementation of substantive equality supports the new strategic direction of the Authority and is outlined in the Aboriginal Housing – Joint Statement released by the Equal Opportunity Commission and the Department in June 2006.

As the Authority is implementing substantive equality objectives more broadly than most other departments in line with its new strategic direction, it is anticipated that outcomes within Level 1, although achieved in part, will be sufficiently robust once it is implemented within the context of rolling out its new strategic directions. These are a clear agency-wide communication strategy, resources, and clear lines of responsibility to sustain the continued implementation of substantive equality.

The needs and impact assessment within Rental Operations is nearly finished. The findings will form the basis for identifying areas in which the systems relating to rental tenancies, need to be adjusted or developed.

Current and future directions include:

integrating, as far as is possible, substantive equality principles within operations;

continuing to assess policies, practices and procedures for its equality impact in line with the framework;

••

•

•

•



using the findings of the needs and impact assessment to help identify further areas of development within the context of the framework. This will include relevant training so that meanings of substantive equality are translated into service delivery functions.

Apart from conducting the needs and impact assessment on policies, practices and procedures for rental operations, the Authority has also undertaken initiatives consistent with substantive equality principles. These include:

reviewing the accessibility of rental policies for staff and clients; and

commencing the review of data systems within rental operations and the descriptors used. Once completed, the analysis of such data will help identify the extent of any unintended, adverse impact towards specific groups. This data would also help identify areas where action is most needed and, if measures are taken, whether they have been successful.

Sustainability

Public housing

Ellenbrook sustainable housing project

The Ellenbrook sustainable housing project is a joint initiative between the Authority and the Master Builders Association, to design and build eight demonstration houses in Ellenbrook.

The project aims to demonstrate to first homebuyers that it is possible to design innovative, sustainable and affordable housing. The demonstration homes will be open to the public prior to making them available for our tenants or possible sale.

Five sites at Dunrobin Drive have been handed over to a builder and construction is currently underway. The site for a potential grouped dwelling at Larrawa Circle is still at the planning stage. The projects are expected to be completed by the end of 2007.

•

•

•

•

5 Star Plus

The Authority, through the Department of Housing and Works, has developed two new building codes that will require all new homes to incorporate minimum energy and water efficiency measures. The Energy Use in Houses Code and the Water Use in Houses Code were announced by the Premier as part of his Climate Change Action Statement in May 2007 and take effect on 1 September 2007. Some of the measures required include the installation of a solar or gas hot water system; water efficient taps, showerheads and toilets; and plumbing to allow for later connection to an alternative water supply such as a rain water tank, grey water system or third pipe. Affordable Housing

The Authority aims to commence at least 200 affordable homes for First Start clients in both metropolitan and regional centres during 2007-08.

Homes are planned to be available in both the Authority’s joint venture projects at Ellenbrook and Brighton, and in the Authority’s developments at Banksia Grove, Brookdale (Chiltern), Bertram, Armadale (Westfield), McKail (Albany) and Glen Iris (Bunbury).

The homes will be developed in groups, with a combination of contiguous and multi-dwelling lots to allow economies of scale and provide coordinated and attractive streetscapes. The designs for all the homes will also be subject to architectural review to ensure they adopt fundamental energy efficient design features.

•

Banksia Grove


The homes will target buyers in the $365,000 and below price range, with the first homes becoming available for pre-purchase ‘off the plan’ in the first half of 2007-08.

Green House, Maddington

In 2005, the Authority provided one of its rental properties in Maddington to be used for a sustainable home retrofit project by the South East Regional Energy Group (SEREG). The project is part of SEREG’s broader community-based social marketing program “Switch your thinking” and aims to demonstrate that existing homes can readily achieve environmental and economic savings for residents with simple modifications. Officially opened in July 2006, the Green House was open to the public for 12 months and is now being monitored to quantify the environmental benefits of the retrofit.

Innovation in Affordable Housing program

The Innovation in Affordable Housing program aims to facilitate the construction of up to 50 innovative demonstration homes in the metropolitan area. The project will allow the home building industry to showcase innovative building products and techniques, and will stimulate discussion within the home building industry and among potential homebuyers. The proposed housing will feature innovations such as pre-fabricated materials and modular building components and aims to reduce construction, maintenance and management costs, improve energy efficiency and significantly shorten construction periods. Three builders have been selected through an EOI process and are currently finalising designs and pricing for the first 25 homes.

Quattro Sustainable Home

The Quattro Sustainable Home Project involves the design and construction of an environmentally friendly and energy efficient home at 325 Wharf Road, Quattro (Queens Park).

The purpose of the house is to provide a high-profile house that can be used as a project/

•

•

•

sales office and for community meetings. The house will be designed to demonstrate energy efficiency and environmental sensitivity, as well as accessibility for people with visual and mobility impairment. The house is due for completion in September 2007.

Land Development

Harrisdale Village

Harrisdale Village is a Housing Authority land subdivision in Forrestdale. Harrisdale has been planned to demonstrate best practice sustainability incorporating water sensitive urban design, increased density, housing diversity, lot orientation to maximise solar access, and integration of the local ecology and built form.

The Authority is currently in the process of selecting a joint venture partner to develop Harrisdale. The successful partner will be announced in late 2007.

Brighton

The Brighton Estate at Butler is a joint venture between the Housing Authority and the Satterley Property Group. Brighton is a fully integrated and master planned estate in the northern suburbs focusing on creating socially, commercially and environmentally sustainable villages and communities.

•

•

BrightonEstate



The Green, one of Brighton’s eco-friendly, innovative villages, is currently under development. It will be the first development of its kind in Australia to use only non-potable water (from ground bores) on household gardens and communal parks. Satterley will also work with leading builders to ensure all homes in the estate are designed to energy efficiency standards, and that planning allows for more public transport and reduced need for car use within the village.

Sustainability Action Plan

Waste

The Authority has carried out a waste management audit that has made recommendations on waste avoidance, waste reduction, recycling and education and training.

The largest source of recoverable waste identified was office paper, readily biodegradable material and recoverable paper. The Authority has taken a pragmatic approach to this issue and actively recycles waste office paper, office machine cartridges and has recently commenced a roll out program to recycle cardboard and co-mingled waste where practical.

The appointment of waste wardens is being considered to improve awareness and monitor waste management practices.

Energy

The Authority monitors and reports on its energy consumption in accordance with the government benchmarks established by the Energy Smart Government Program. A number of modifications to office buildings, including upgrades to lifts, air conditioning, lighting and sub-metering have been carried out this year.

•

•

Water

The Authority has located and repaired water leaks, and is installing dual flush toilets to reduce water consumption in our head office building at 99 Plain Street, East Perth.

The NABERS (National Australian Built Environment Rating System) tool is now available for landlords and building owners to self-assess existing office buildings for water use, and the Authority, through the Department of Housing and Works, is currently reviewing its policies to mandate minimum water efficiency standards for government offices.

Vehicles and Travel

Under our Motor Vehicle Allocation policy, all new metropolitan government vehicles are four-cylinder cars. In regional locations, the allocation of four-cylinder vehicles is determined according to need and distance travelled.

TravelSmart

The Authority participates in the State Government’s TravelSmart Workplace Program, and developed a Green Transport Plan in 2006 with the input of staff.

The TravelSmart committee is now progressing and implementing actions from the Green Transport Plan that promote healthy, active and environmentally friendly travel options for staff.

A major action identified in the Green Transport Plan was the provision of improved shower and change-room facilities for staff cycling, jogging or walking to work. The end-of-trip facilities have now been completed and the Green Transport Plan is scheduled for review at the end of 2007.

•

•

•

Auditor General’s Opinion


Auditor General’s Opinion

INDEPENDENT AUDIT OPINION

To the Parliament of Western Australia

HOUSING AUTHORITY FINANCIAL STATEMENTS AND KEY PERFORMANCE INDICATORS FOR THE YEAR ENDED �0 JUNE 2007

I have audited the accounts, financial statements, controls and key performance indicators of the Housing Authority.

The financial statements comprise the Balance Sheet as at 30 June 2007, and the Income Statement, Statement of Changes in Equity and Cash Flow Statement for the year then ended, a summary of significant accounting policies and other explanatory Notes.

The key performance indicators consist of key indicators of effectiveness and efficiency.

Director General’s Responsibility for the Financial Statements and Key Performance Indicators.

The Director General is responsible for keeping proper accounts, and the preparation and fair presentation of the financial statements in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Treasurer’s Instructions, and the key performance indicators. This responsibility includes establishing and maintaining internal controls relevant to the preparation and fair presentation of the financial statements and key performance indicators that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; making accounting estimates that are reasonable in the circumstances; and complying with the Financial Management Act 2006 and other relevant written law.

Summary of my Role

As required by the Auditor General Act 2006, my responsibility is to express an opinion on the financial statements, controls and key performance indicators based on my audit. This was done by testing selected samples of the audit evidence. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Further information on my audit approach is provided in my audit practice statement. Refer “http://www.audit.wa.gov.au/pubs/Audit-Practice-Statement.pdf”.

An audit does not guarantee that every amount and disclosure in the financial statements and key performance indicators is error free. The term “reasonable assurance” recognises that an audit does not examine all evidence and every transaction. However, my audit procedures should identify errors or omissions significant enough to adversely affect the decisions of users of the financial statements and key performance indicators.

http://www.audit.wa.gov.au/pubs/Audit-Practice-Statement.pdf

http://www.audit.wa.gov.au/pubs/Audit-Practice-Statement.pdf



Housing Authority Financial Statements and Key Performance Indicators for the year ended �0 June 2007

Audit Opinion

In my opinion,

(i)

(ii)

(iii)

COLIN MURPHY AUDITOR GENERAL 31 August 2007

the financial statements are based on proper accounts and present fairly the financial position of the Housing Authority at 30 June 2007 and its financial performance and cash flows for the year ended on that date. They are in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Treasurer’s Instructions;

the controls exercised by the Authority provide reasonable assurance that the receipt, expenditure and investment of money, the acquisition and disposal of property, and the incurring of liabilities have been in accordance with legislative provisions; and

the key performance indicators of the Authority are relevant and appropriate to help users assess the Authority’s performance and fairly represent the indicated performance for the year ended 30 June 2007.


Certification

Certification of Performance Indicators

I hereby certify that the performance indicators are based on proper records, are relevant and appropriate for assisting users to assess the performance of the Housing Authority, and fairly represent the performance of the Housing Authority and its subsidiary for the financial year ended 30 June 2007.

R J MITCHELL

DIRECTOR GENERAL

ACCOUNTABLE AUTHORITY

31 August 2007



Performance Indicators

Outcome 1: Housing eligible Western Australians

Goal one of the Strategic Planning Framework for the Western Australian Public Sector, is to enhance the quality of life and well being of all people throughout Western Australia. Housing satisfies a basic need for shelter. In the wider context affordable, safe and secure housing contributes to positive social outcomes in health, education and employment. The Housing Authority contributes to this goal by providing housing through its rental housing, home finance and land activities for eligible Western Australians who may not otherwise be able to obtain housing.

Eligibility for public rental housing and home loans is determined by assessable income limits and other eligibility criteria. The opportunity to purchase Authority land, priced in the low-to-medium price bracket is available to all Western Australians. In addition, the Authority makes available loans to cover the cost of security bonds in order that income-eligible applicants can access housing in the private rental market.

It is a key strategy of the Authority to ease the pressure on the waiting list for public housing by offering low-to-moderate income earners the opportunity to purchase their own home, either through the purchase of a low-to-medium priced housing lot or through a home loan, or a bond loan to enter the private rental market.

Effectiveness Indicator 1

The extent to which the Housing Authority is responsive to the housing needs of eligible Western Australians.

This indicator measures the Authority’s capacity to respond to demand as expressed by the waiting list for public rental housing. The ratio of the total number of units of housing assistance provided each year, to the number on the waiting list at the 30th of June of the previous year, is an indicator of the Authority’s capacity to respond to expressed demand for housing assistance from eligible Western Australians. The higher the ratio, the greater the capacity to offer assistance.


Actual Target2002-0� 200�-04 2004-05 2005-06 2006-07 2006-07

Total housing assistances * 24,896 23,659 22,348 18,537 14,991 21,735Public rental waiting list @ June previous financial year

14,194 12,981 12,788 13,125 13,780 13,709

Ratio 1.75 1.82 1.75 1.41 1.09 1.59

* For 2006-07 total units of housing assistance comprised:

Number of bond assistance loans approved 7,617Number of home loans approved 3,155Number of public rental occupations 3,627Number of Housing Authority

(including Joint Venture partner) land sales below $169,000 #1 592 2001-02= <$65,000; 2002-03 <$75,000; 2003-04=<$76,000); 2004-05=$96,600; 2005-06=$129,000)

#1 The benchmark cut-off for the lower end of the market ($169,000 lower quartile) is derived from the Real Estate Institute of Western Australia’s Market Update Report March Quarter 2007 which contains the final December Quarter 2006 lower quartile. The Report provides the lower quartile for Western Australia (State) residential land sales.

The number of assistances continued to drop in 2006-07 as a result of the overheated property market in WA following the trend in 2005-06.

Perth has an all time low vacancy rate in the private rental market, of one per cent. The last time WA was close to that was in 1986. This has impacted on the number of bond assistance loans approved.

Home loans approved by Keystart have also decreased due to the rapid increase in property prices over the past two years having an adverse effect on borrower affordability. To offset this effect, the Authority introduced the First Start Shared Equity Scheme in 2006-07. The private sector is also assisting more people by adopting Keystart’s low deposit criteria.

Public rental occupations are consistent with last year but have dropped from previous years due to a reduction in the number of people vacating.

The REIWA Market Update March Quarter 2007 stated, land stood out in terms of price rises, showing a surge of 40% over the June and September 2006 quarters. The proportion of lots below the $150 000 first home buyer stamp duty free threshold plummeted 41% to just 8%. This has impacted on the number of Authority land sales in the lower quartile.

----

Ratio of the Number of Units of Housing Assistance per annum to the Number on the Waiting List at the start of the reporting

period

1.001.101.201.301.401.501.601.701.801.902.002.102.20

2002-03 2003-04 2004-05 2005-06 2006-07

Ratio Target




Waiting times for accommodation – applicants housed

The waiting time for accommodation measures the extent to which public rental housing provision is responding to the needs of eligible rental applicants. It demonstrates the Authority’s capacity to respond to demand on the waiting list. The greater the capacity to meet demand, the shorter the waiting time. Waiting time is defined as the difference between the time when the customer was listed on the waiting list and when they were housed.

The indicator measures the waiting time of all applicants housed during the year in terms of average and median. The target is to maintain or improve on the previous years result. The distribution of waiting times table below gives context to the average and median waiting times and also shows how effectively people are housed at different time intervals.

Distribution of Waiting Times2002-0� 200�-04 2004-05 2005-06 2006-07

< 1 month 22.38% 20.37% 18.47% 19.30% 14.06%1-12 months 36.33% 38.82% 38.52% 33.59% 34.85%1-� years 27.83% 26.41% 25.67% 29.67% 30.58%�-5 years 11.54% 12.02% 14.03% 15.44% 17.34%5+ years 1.92% 2.37% 3.32% 2.00% 3.17%

Average and median wait times each increased by nine weeks compared with the target. The increase in the median is due to a decrease in the percentage of people housed within one year to 49% and an increase in the percentage housed after a year to 51%. There has been a decrease in the percentage housed within a month from 19.30 per cent to 14.06 per cent.

The increase in waiting times has been affected by a reduction in the number of people vacating public rental housing and an increase in the waiting list from 13,780 at June 2006 to 15,438 at June 2007 due to current housing market conditions. There has also been an increase in the number of priority applications.

Waiting Times for Accommodation - Applicants HousedAverage & Median in Weeks

102030405060708090

Wee

ks

Average Median Target Average Target Median

Average 65 64 65 73 74 83

Median 33 36 34 39 46 55

Target Average 74

Target Median 46

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07


Outcome 2: Provision of housing in country areas for Government employees to facilitate the operation of Government services.

Goal one of the Strategic Planning Framework for the Western Australian Public Sector is to enhance the quality of life and well being of all people throughout Western Australia and goal four is to ensure that regional Western Australia is strong and vibrant. Through the Government Regional Officers’ Housing (GROH) service, the Housing Authority contributes to these goals by providing Government employees with quality housing in country areas. This in turn supports Government’s commitment to deliver public services such as education, health and policing.


The extent to which the Government Regional Officers’ Housing is responsive to the provision of housing to meet the needs of eligible Western Australian Government employees.

This indicator measures the capacity to respond to demand as expressed by the Departments’ requests for accommodation. This is calculated by dividing the supply, or allocation of stock at the end of the year, by the demand for accommodation in the form of requests from departments for accommodation and allocation of stock at the start of the year. This is an indicator of the response to demand for housing assistance for Western Australian Government employees. The supply ratio indicates GROH’s level of success in providing accommodation in response to the demand from departments.

Demand and SupplyActual Target

2002-0� 200�-04 2004-05 2005-06 2006-07 2006-07Demand 4,244 4,262 4,399 4,550 4,709Supply 4,140 4,156 4,197 4,261 4,392Ratio 98% 98% 95% 94% 93% 100%

Although the number of properties supplied increased, the ratio of supply to demand is below the target to supply 100% of properties requested and has decreased slightly in 2007 compared to the previous year. This is the result of a strong increase in demand particularly in the Pilbara created by the resources boom. Increased demand was from the Department of Education and Training, the Western Australian Police, Department of Corrective Services, and Department for Child Protection.

Total Demand & Current Supply

40

60

80

100

2002-03 2003-04 2004-05 2005-06 2006-07

Supp

ly R

atio

(%)

2006-07 Target Ratio



Efficiency Indicators:

The Authority provides four major services: rental housing, home loans, residential land and Government regional officers’ housing.

Service 1: Rental Housing

This service contributes to the Authority’s outcome by providing eligibility assessed public rental housing, state-owned indigenous public housing, rental properties managed by non-profit community organisations, housing associations and local Governments through the joint venture, community housing and crisis accommodation programs and properties built for indigenous communities.

Efficiency Indicator 1

Operating Cost Per Rental Property

Operating cost per rental property measures the cost efficiency of rental housing and is calculated by dividing total cost of service (total expenses) by the total number of rental properties.

The total operating cost of the rental service is comprised of community support, depreciation and amortisation, finance costs, administration costs (employee benefits, supplies and services and accommodation), rental, New Living program (refurbishment of public housing in high density areas) and other expenses. Community support expenses include repair and maintenance of infrastructure, power, water and wastewater in indigenous communities and town reserves, which cannot be directly attributed to a property.

* Nominal refers to the face value of the money. **Real refers to the value of money adjusted for inflation (Consumer Price Index – All Groups Perth): Cost per rental property has been adjusted to 2002-03 prices.

The operating cost per rental property has increased over the 2006-07 financial year to $8,936. The increase in nominal cost compared to the target and the previous year resulted from an increase in depreciation and amortisation expenses due to the effect of a sustained rise in property values. Maintenance expenses also increased, as well as other rental expenses of rates, insurance and regional refurbishments also increased. Employee expenses increased due to a salary increase in 2007 and the accumulated effect on superannuation. There was also an increase in finance costs due to an increase in borrowings.

Operating Cost per Rental Property(Nominal and Real)

$4,500$5,000$5,500$6,000$6,500$7,000$7,500$8,000$8,500$9,000$9,500

$10,000

2006-07 Nominal Cost Target $7,769

Nominal Rental Cost* $6,699 $7,211 $7,554 $8,347 $8,936

Real Rental Cost ** $6,699 $7,067 $7,177 $7,607 $7,831

2002-03 2003-04 2004-05 2005-06 2006-07


Service 2: Home Loans

This service contributes to the Authority’s outcome by providing eligibility assessed home ownership products.


Operating Cost per Current Loan Account

Cost per current loan account measures the cost efficiency in home ownership products and services. It is calculated by dividing total cost of service (total expenses) by the total number of loans (Keystart and other loan products).

The total operating cost of the home loans service is comprised of community support, depreciation and amortisation, administration costs (employee benefits, supplies and services and accommodation), rental and other expenses. Keystart finance costs for loan advances to clients are excluded as borrowing costs are incurred and borne by clients and therefore do not relate to the resources in approving and processing loan applications and managing loan accounts.

* Nominal refers to the face value of the money. **Real refers to the value of money adjusted for inflation (Consumer Price Index – All Groups Perth): Cost per loan has been adjusted to 2002-03 prices.

The operating cost per current loan account has increased over the 2006-07 financial year to $1,434. This is due to a substantial decrease in the size of Keystart’s loan book from 16,586 loans to 12,467 as a result of borrowers with increased equity refinancing to the private sector. However there was a reduction in administration and other operating expenses. The operating cost was below the target with the operating expenses below projections.

Operating Cost per Current Loan Account(Nominal and Real)

$0$250$500$750

$1,000$1,250$1,500$1,750$2,000


Nominal Loan Cost * $1,256 $1,351 $1,478 $1,229 $1,434

Real Loan Cost ** $1,256 $1,324 $1,404 $1,120 $1,257

2002-03 2003-04 2004-05 2005-06 2006-07



Service �: Land

This service contributes to the Authority’s outcome by providing housing lots.

Efficiency Indicator �

Operating Cost Per Lot Developed

This indicator measures the efficiency of the land service. It is calculated by dividing total cost of service (total expenses) by the number of lots developed for sale.

The total operating cost of the land service is comprised of depreciation and amortisation, finance costs, administration costs (employee benefits, supplies and services and accommodation), rental, New Living and other expenses.

*

Nominal refers to the face value of the money. **Real refers to the value of money adjusted for inflation (Consumer Price Index – All Groups Perth): Cost per lot developed has been adjusted to 2002-03 prices.

The operating cost per lot developed has increased over the 2006-07 financial year to $6,874. The increase against the previous year and budget was mainly due to lots scheduled for completion in 2006-07 having titles issued in the first quarter of 2007-08, as a result of delays outside of the control of the Authority.

Operating Cost per Lot Developed(Nominal and Real)

$4,500$5,500$6,500$7,500$8,500$9,500

$10,500$11,500$12,500$13,500$14,500


Nominal Land Cost * $8,772 $8,708 $6,180 $5,844 $6,874

Real Land Cost ** $8,772 $8,534 $5,871 $5,326 $6,024

2002-03 2003-04 2004-05 2005-06 2006-07


Service 4: Government Regional Officers’ Housing


Operating cost per property.

This indicator measures the cost efficiency of the provision of GROH housing. It is calculated by dividing the total cost of output by the total number of properties at the end of the year.

* Nominal refers to the face value of the money.**Real refers to the value of money adjusted for inflation (Consumer Price Index – All Groups Perth): Cost per property has been adjusted to 2002-03 prices.

The graph above indicates that operating costs have remained relatively stable across the last five years. The operating cost per property for the 2006-07 financial year increased in comparison to the previous year and was above the original budget target. GROH received a market driven increase in rental income from departments in 2006-07. This increase in income was returned to clients via an increase in expenditure on maintenance and refurbishment of properties and was reflected in budget changes during the course of the year.

Operating Cost per Property

$0

$4,000

$8,000

$12,000

$16,000

2006-07 Target $15,313

Nominal Property Cost * $12,736 $13,510 $14,523 $14,865 $16,459

Real Property Cost ** $12,736 $13,239 $13,797 $13,548 $14,424

2002-03 2003-04 2004-05 2005-06 2006-07



Financial Statements

CERTIFICATION OF FINANCIAL STATEMENTS

The accompanying financial statements of the Housing Authority and the accompanying consolidated financial statements have been prepared in compliance with the provisions of the Financial Management Act 2006, from proper accounts and records, to present fairly the financial transactions for the financial year ending 30 June 2007 and the financial position as at 30 June 2007.

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

_________________________

R. J. Mitchell Director General Accountable Authority

_________________________

J. Mullen Chief Finance Officer

August 31, 2007


THE HOUSING AUTHORITY AND CONTROLLED ENTITIES

THE HOUSING AUTHORITYAND CONTROLLED ENTITIES

INCOME STATEMENTSFOR THE YEAR ENDED 30 JUNE 2007

Consolidated ParentNote 2007 2006 2007 2006

$000 $000 $000 $000INCOMERevenueSales 6 245,932 194,602 245,932 194,602Rental revenue 7 223,274 136,897 223,274 136,897Commonwealth grants and contributions 8 136,939 144,977 136,939 144,977Interest revenue 9 122,248 136,248 93,890 105,233Developers' contributions 2,603 2,245 2,603 2,245Other revenues 10 10,171 12,884 30,997 30,517Total revenue 741,167 627,853 733,635 614,471

GainsGains on disposal of non-current assets 11 6,740 294 6,750 301

Total income 747,907 628,147 740,385 614,772

EXPENSESExpensesCost of sales 6 111,561 108,037 111,561 108,037Rental expenses 12 177,773 116,300 177,773 116,300New Living expenses 12 38,210 40,930 38,210 40,930Community support expense 13 94,877 98,470 94,877 98,470Employee benefits expense 14 51,623 41,795 51,484 41,651Supplies and services 15 18,291 15,516 15,896 12,985Depreciation & amortisation expense 16 70,578 56,348 68,959 54,327Finance costs 17 128,951 132,436 132,357 132,487Accommodation expenses 18 4,974 4,372 4,568 3,981Other expenses 19 25,903 23,861 19,468 15,445Total expenses 722,741 638,065 715,153 624,613Profit/(loss) before grants and subsidies from State Government 25,166 (9,918) 25,232 (9,841)Grants and subsidies from State Government 8 32,578 36,473 32,578 36,473Profit for the period 5(i) 57,744 26,555 57,810 26,632

The Income Statements should be read in conjunction with the accompanying notes.





BALANCE SHEETSAS AT 30 JUNE 2007


$000 $000 $000 $000ASSETSCurrent AssetsCash and cash equivalents 20 110,978 152,819 102,067 135,435Inventories 21 76,779 32,286 76,779 32,286Receivables 22 43,989 44,607 43,997 45,855Other current assets 23 7,842 3,892 19,001 17,014Derivatives 24 2,300 1,988 - -Non-current assets classified as held for sale 25 8,384 7,396 8,384 7,396Other financial assets 26 149,802 149,861 - -Total Current Assets 400,074 392,849 250,228 237,986

Non-Current AssetsInventories 21 432,231 386,336 432,231 386,336Receivables 22 1,255,547 1,657,731 1,242,121 1,663,005Other financial assets 26 24 24 24 24Rental properties 27 8,198,307 4,817,132 8,198,307 4,817,132Community housing properties 28 437,159 290,253 437,159 290,253Shared equity properties 29 206,702 124,038 206,702 124,038Other properties 30 53,082 31,597 53,082 31,597Plant & equipment 31 6,937 5,682 6,486 5,052Buildings under construction 32 144,998 129,975 144,998 129,975Intangible assets 33 2,772 2,758 2,311 2,065Other non-current assets 34 4,204 6,262 - -Total Non-Current Assets 10,741,963 7,451,788 10,723,421 7,449,477TOTAL ASSETS 11,142,037 7,844,637 10,973,649 7,687,463

LIABILITIESCurrent LiabilitiesPayables 35 49,221 38,104 49,223 48,104Borrowings 36 30,335 21,424 30,335 21,424Provisions 37 24,871 21,028 24,871 21,028Other current liabilities 38 29,724 29,140 28,303 27,192Total Current Liabilities 134,151 109,696 132,732 117,748

Non-Current LiabilitiesPayables 35 731 938 731 938Borrowings 36 2,082,911 2,340,102 2,082,911 2,340,102Provisions 37 39,031 36,643 39,031 36,643Other non-current liabilities 38 478 - 478 -Total Non-Current Liabilities 2,123,151 2,377,683 2,123,151 2,377,683Total Liabilities 2,257,302 2,487,379 2,255,883 2,495,431NET ASSETS 8,884,735 5,357,258 8,717,766 5,192,032

EQUITY

Contributed equity 39 339,901 85,765 339,901 85,765Reserves 40 6,091,732 2,971,218 6,088,530 2,969,759Retained earnings 41 2,453,102 2,300,275 2,289,335 2,136,508TOTAL EQUITY 8,884,735 5,357,258 8,717,766 5,192,032

The Balance Sheets should be read in conjunction with the accompanying notes.




STATEMENTS OF CHANGES IN EQUITYFOR THE YEAR ENDED 30 JUNE 2007


$000 $000 $000 $000

Balance of equity at start of period 5,357,258 4,519,126 5,192,032 4,371,570

CONTRIBUTED EQUITY 39Balance at start of period 85,765 70,765 85,765 70,765Capital contribution 15,000 15,000 15,000 15,000Other contributions by owner 239,136 - 239,136 -Balance at end of period 339,901 85,765 339,901 85,765

RESERVES 40Balance at start of period 2,971,218 2,329,515 2,969,759 2,328,473Net adjustment on transition to AIFRS - 494 - -Restated balance at start of period 2,971,218 2,330,009 2,969,759 2,328,473Gains from asset revaluation 3,213,788 778,892 3,213,788 778,892Transfer from income statement 1,809 - - -Transfer to retained earnings (95,083) (137,683) (95,017) (137,606)Balance at end of period 6,091,732 2,971,218 6,088,530 2,969,759

RETAINED EARNINGS 41Balance at start of period 2,300,275 2,118,846 2,136,508 1,972,332Net adjustment on transition to AIFRS - 17,191 - (62)Restated balance at start of period 2,300,275 2,136,037 2,136,508 1,972,270Transfer from reserves 95,083 137,683 95,017 137,606Profit for the period 57,744 26,555 57,810 26,632Balance at end of period 2,453,102 2,300,275 2,289,335 2,136,508Balance of equity at end of period 8,884,735 5,357,258 8,717,766 5,192,032

Total income and expense for the period (a) 3,271,532 805,447 3,271,598 805,524

(a) The aggregate net amount attributable to each category of equity is: Surplus 57,744 26,555 57,810 26,632Asset Revaluation gain 3,213,788 778,892 3,213,788 778,892

3,271,532 805,447 3,271,598 805,524

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





CASH FLOW STATEMENTSFOR THE YEAR ENDED 30 JUNE 2007


$000 $000 $000 $000CASH FLOWS FROM OPERATING ACTIVITIESReceipts

Commonwealth grants and contributions 136,939 144,977 136,939 144,977Rental receipts 225,710 139,076 225,710 139,076Interest received 125,041 142,394 96,585 99,799Inventory receipts on sales 239,748 175,618 239,748 175,618Other receipts 26,757 14,796 50,785 37,431GST receipts on sales 16,582 13,360 16,582 13,360GST receipts from taxation authority 5,311 8,987 5,311 8,987Developers contributions 2,603 2,245 2,603 2,245

PaymentsEmployee benefits (67,954) (53,867) (48,905) (40,045)Accommodation (4,568) (3,981) (4,568) (3,981)Supplies & services (17,873) (13,006) (17,873) (13,006)Finance costs paid to

Commonwealth government (23,722) (24,248) (23,722) (24,248)WA Treasury Corporation (108,128) (104,323) (108,128) (104,323)Other (1,802) (445) (1,802) (496)

Purchase and Development of Land (197,675) (142,391) (197,675) (142,391)GST payments on purchases (44,256) (31,144) (44,256) (31,144)GST payments to taxation authority (1,599) (3,416) (1,599) (3,416)New Living payments (38,210) (40,930) (38,210) (40,930)Rental property payments (183,736) (120,537) (183,736) (120,537)Other Payments (101,705) (105,378) (101,705) (105,378)

Net cash(used in)/provided by operating activities 42 (12,537) (2,213) 2,084 (8,402)

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from the sale of non-current physical assets 94,235 111,680 94,225 111,680Purchase of non-current physical assets 43 (252,047) (181,645) (251,873) (181,168)Home purchase receipts 803,935 752,588 51,279 47,710Home purchase advances (388,916) (627,604) (740) (13,086)Other investing receipts 1,347 - 371,347 135,000Other investing payments - - (11,344) (40,000)Net cash provided by investing activities 258,554 55,019 252,894 60,136

CASH FLOWS FROM FINANCING ACTIVITIESProceeds from borrowings

WA Treasury Corporation 48,974 40,000 48,974 40,000Repayment of borrowings from

WA Treasury Corporation (384,636) (148,666) (384,636) (148,666)Commonwealth government (12,644) (12,331) (12,644) (12,331)Other non-government sources 429 (445) - -

Net cash used in financing activities (347,877) (121,442) (348,306) (120,997)

CASH FLOWS FROM STATE GOVERNMENTCapital Contribution 26,181 15,000 26,181 15,000Proceeds from grants 32,578 36,473 32,578 36,473Net cash provided by State Government 58,759 51,473 58,759 51,473Net decrease in cash and cash equivalents (43,101) (17,163) (34,569) (17,790)Cash and cash equivalents at the beginning of the period 280,695 297,858 113,450 131,240CASH AND CASH EQUIVALENTS AT THE END OF PERIOD 44 237,594 280,695 78,881 113,450

The Cash Flow Statements should be read in conjunction with the accompanying notes.



NOTES TO AND FORMING PART OF THE ACCOUNTS

1. Australian equivalents to International Financial Reporting Standards

General

The Housing Authority was established by the Machinery of Government Act 2006. The Housing Authority is acontinuation of the activites of the Sate Housing Commission which is governed by the Housing Act 1980. Theformer Governament Employee's Housing Authority was discontinued and amalgamted into the Housing Authorityfrom the 1st of July 2006.

The Housing Authority (the "parent entity" ) and controlled entities financial statements for the year ended 30 June 2007have been prepared in accordance with Australian equivalents to International Financial Reporting Standards (AIFRS),which comprise a Framework for the Preparation and Presentation of Financial Statements (the Framework) and AustralianAccounting Standards (including the Australian Accounting Interpretations).

In preparing these financial statements the Authority has adopted, where relevant to its operations, new and revisedStandards and Interpretations from their operative dates as issued by the AASB and formerly the Urgent Issues Group(UIG).

Early adoption of standards

The Authority cannot early adopt an Australian Accounting Standard or Interpretation unless specifically permitted by TI1101 ‘Application of Australian Accounting Standards and Other Pronouncements’. No Standards and Interpretations thathave been issued or amended but are not yet effective have been early adopted by the Housing Authority for the annualreporting period ended 30 June 2007.

2. Summary of significant accounting policies

The following accounting policies adopted by the Consolidated Entity are stated in order to assist in a general understandingof the financial statements. Unless otherwise stated these policies are consistent with those adopted in the previous year.

(a) General Statement

The financial statements constitute a general purpose financial report which has been prepared in accordance with theAustralian Accounting Standards, the Framework, Statements of Accounting Concepts and other authoritativepronouncements of the Australian Accounting Standards Board as applied by the Treasurer’s instructions. Several ofthese are modified by the Treasurer's Instructions to vary application, disclosure, format and wording.

The Financial Management Act and the Treasurer’s instructions are legislative provisions governing thepreparation of financial statements and take precedence over the Accounting Standards, the Framework, Statements ofAccounting Concepts and other authoritative pronouncements of the Australian Accounting Standards Board.

Where modification is required and has a material or significant financial effect upon the reported results, details of thatmodification and the resulting financial effect are disclosed in the notes to the financial statements.

(b) Basis of Preparation

The financial statements have been prepared on the accrual basis of accounting using the historical cost convention,modified by the revaluation of land and buildings, and certain financial instruments which have been measured at fairvalue. The accounting policies adopted in the preparation of the financial statements have been consistently appliedthroughout all periods presented unless otherwise stated. The financial report is presented in Australian dollars and allvalues are rounded to the nearest thousand dollars ($'000) or, in certain cases, to the nearest dollar.




2. Summary of significant accounting policies (continued)

(c) Basis of Consolidation

The consolidated financial statements have been prepared by combining the financial statements of all entities thatcomprise the Consolidated Entity, being The Housing Authority (the "parent entity" or "Authority") and itscontrolled entities, as defined in accordance with AASB 127 “Consolidated and Separate Financial Statements” andmodified by Treasurer's instruction 1105. A list of controlled entities appears in note 2(d). Consistent accountingpolicies have been employed in the preparation and presentation of the consolidated financial statements.

The consolidated financial statements include the information and results of each controlled entity from the date onwhich the Authority obtains control and until such time as the Authority ceases to control such entities. Inpreparing the consolidated financial statements, all inter entity balances and transactions, and unrealised profits arisingwithin the consolidated entity are eliminated in full.

(d) Legal form of Controlled Entities

(i) The Keystart Housing Scheme includes a trust and company structure set up to enable funds to be raised throughthe Authority at competitive rates and on lent to Keystart borrowers for the purchasing of owner occupiedhomes.The structure comprises of:-The Keystart Housing Scheme Trust established by a Deed of Trust in the State of Western Australia, dated 5April 1989 with Keystart Loans Ltd (a special purpose nominal capital company) as trustee and the Authority isthe sole beneficiary of the trust. Keystart Scheme Management Pty Ltd has been appointed as Manager.- Keystart Support Trust - A special purpose trust used to provide financial support to the Scheme if required.The Authority is the sole beneficiary of this trust.- Keystart Bonds Ltd - A special purpose nominal capital company being the Issuer with Oakvale Capital Ltd astreasury advisor.- Keystart Support Pty Ltd - A special purpose nominal capital company as trustee of the support trust. Themanager is Keystart Scheme Management Pty Ltd.- Keystart Support (Subsidiary) Pty Ltd - A special purpose nominal capital company created to assist KeystartSupport P/L in its obligations.Keystart Scheme Management Pty Ltd - A special purpose nominal capital company created to providemanagement services to the Keystart Trustee and group of companies.All of these Keystart trusts and companies have been established in the State of Western Australia. The financialtransactions for these entities have no effect on the net profit of the Authority . The Authority provides asupport arrangement to the structure through the Support Trust.

(ii) Homeswest Loan Scheme Trust - A special purpose Trust established by a Trust Deed dated 19 September 1995to operate as an agent for the Authority's home loan schemes. In it's capacity as agent, the Trust receivesadvances for the purpose of providing mortgages to Western Australians. The Authority is the sole beneficiaryof the Trust, and Keystart Loans Ltd is the trustee of the Trust.

(e) Ownership Interest

The Authority is the instigator of the Keystart Housing Scheme and has effective control over the whole structureeither directly or indirectly through various Agreements which constitute the structure and to which it is a party. TheBoard of Directors of the Keystart group of companies comprise two Directors from the Authority and five Directorsfrom the private sector. The ownership interest held by the Authority in the Companies is as follows:Keystart Bonds Ltd : 100% of the total shareholdingKeystart Loans Ltd : 100% of the total shareholdingKeystart Support Pty Ltd : 100% of the total shareholdingKeystart Support (Subsidiary) Pty Ltd: 100% of the total shareholdingKeystart Scheme Management Pty Ltd:

The Authority is obligated to the Scheme in that it has given various representations and obligations to investors orother creditors to the extent that it will meet cash shortfalls and losses from the Scheme. Funding for Keystart isthrough the Authority with no borrowings outstanding through Keystart Bonds Ltd. The Authority's obligationsto the various participants are contained in a Support Agreement of the Scheme. No subsidies were required for the2006/2007 financial year (refer to note 22 (a)).




(f) Property, Plant and Equipment

Initial recognition and measurement

All items of property, plant and equipment are initially recognised at cost.

For items of property, plant and equipment acquired at no cost or for nominal cost, the cost is their fair value at thedate of acquisition. Items of property, plant and equipment costing less than $1,000 are expensed direct to the IncomeStatement in the year of acquisition (other than where they form part of a group of similar items which are significant intotal).

Subsequent measurement

After recognition as an asset, the Authority uses the revaluation model for the measurement of land and buildingsand the cost model for plant and equipment. Land and buildings are carried at fair value less accumulated depreciationon buildings and accumulated impairment losses. All other items of plant and equipment are carried at cost lessaccumulated depreciation and accumulated impairment losses.

Additions to non - current physical assets since valuation are measured at cost and are considered to represent fairvalue.Properties less than one year old are measured at construction cost, which is considered to represent fair value, plusland at fair value.

Where market-based evidence is available, the fair value of land and buildings is determined on the basis of current marketbuying values determined by reference to recent market transactions. Where market-based evidence is not available, the fairvalue of land and buildings is determined on the basis of existing use. This normally applies where buildings arespecialised or where land use is restricted. Fair value for existing use assets is determined by reference to the cost ofreplacing the remaining future economic benefits embodied in the asset, i.e. the depreciated replacement cost. Therevaluation of land and buildings is an independent valuation provided on an annual basis by the Department of LandInformation (Valuation Services).

When buildings are revalued, the accumulated depreciation is eliminated against the gross carrying amount of the assetand the net amount restated to the revalued amount.

Rental Properties represent the properties acquired or constructed for public housing, under the Commonwealth andState Housing Agreements. They also include State owned properties leased to State Government departments forGovernment employees housing.

Community Housing Properties include properties acquired under the Commonwealth programs of CrisisAccommodation and Community Housing and Joint Charity Properties.

Shared Equity Properties represent the equity in dwellings constructed or purchased under the Shared Equity LoanScheme. Under the scheme the Authority and the purchaser are co-owners of the properties constructed or purchasedas Tenants in Common with the purchaser having total occupation of the dwelling.

Other Properties Includes offices and commercial properties which are owned or are leased from various organisationsand individuals.





(f) Property, Plant and Equipment (continued)

Depreciation and Amortisation

All non-current assets having a limited useful life are systematically depreciated over their estimated useful lives in amanner which reflects the consumption of their future economic benefits. Depreciation for the Authority's assets iscalculated on a straight line basis, using rates which are reviewed annually.

Depreciation for Keystart plant and equipment is calculated using the reducing balance method. The cost ofimprovements to or on leased rental properties and offices are amortised over the unexpired period of the lease or theestimated useful life of the improvements, whichever is the shorter.

Major depreciation rates are: 2007 2006Rental Properties 2% 2%Community Housing Properties 2% 2%Shared Equity Properties 3% 3%Other Properties - Commercial Properties 2% 2% - Office Properties 5% 5%Plant & Equipment 10% - 50% 10% - 50%Intangible assets 20% - 50% 20% - 50%Other Non-current assets 20% - 50% 20% - 50%

(g) Buildings under construction

Buildings under construction are recorded at cost which includes all costs directly related to specific constructions pluscapitalised administration charges incurred in connection with these activities.

(h) Inventories

Current Inventories are measured at the lower of cost and net realisable value. Cost includes the cost ofacquisition/development and other capitalised costs. After development is completed, other holding charges areexpensed as incurred.

Non-Current Inventories consists of both broad hectare land and lots under developement, excluding lots available forexternal sale (current inventory), which are valued at acquisition cost plus capitalised costs. Developed lots on whichdwellings are subsequently constructed by the Authority are transferred to the stock of Rental Properties at fairvalue as determined by the Valuer General at the date of practical completion. The difference between this valuation andthe cost of the land transferred to Rental Properties represents a revaluation increment which is brought to account asan increase in the Asset Revaluation Reserve.

Joint Venture Land

Joint Venture Land represents the Authority's equity in Joint Venture land development projects. Developmentcosts represent the agreed proportion of development costs incurred plus capitalised costs. Land owned by theAuthority is shown at cost plus capitalised costs.

Interests in joint venture operations have been incorporated in the financial statements by including the Authority'sshare of assets employed in the joint ventures, the share of liabilities incurred in relation to the joint ventures and theshare of any expenses incurred in relation to the joint ventures in their respective classification categories. Details of theAuthority's interests are set out in note 21.

(i) Receivables

Receivables are recognised and carried at original invoice amount less any allowance for uncollectible amounts (i.eimpairment). The collectability of receivables is reviewed on an ongoing basis and any receivables identified asuncollectible are written-off. The allowance for uncollectible amounts (doubtful debts) is raised when there is objectiveevidence that the Authority will not be able to collect its debts. The carrying amount is equivalent to fair value as it isdue for settlement within 30 days. See note 51 ‘Financial Instruments' and note 22‘Receivables’.

Impairment of Receivables

The impairment is based on historical evidence of debts written off during the course of the year lessbad debts recovered.




(f) Property, Plant and Equipment (continued)

Depreciation and Amortisation

All non-current assets having a limited useful life are systematically depreciated over their estimated useful lives in amanner which reflects the consumption of their future economic benefits. Depreciation for the Authority's assets iscalculated on a straight line basis, using rates which are reviewed annually.

Depreciation for Keystart plant and equipment is calculated using the reducing balance method. The cost ofimprovements to or on leased rental properties and offices are amortised over the unexpired period of the lease or theestimated useful life of the improvements, whichever is the shorter.

Major depreciation rates are: 2007 2006Rental Properties 2% 2%Community Housing Properties 2% 2%Shared Equity Properties 3% 3%Other Properties - Commercial Properties 2% 2% - Office Properties 5% 5%Plant & Equipment 10% - 50% 10% - 50%Intangible assets 20% - 50% 20% - 50%Other Non-current assets 20% - 50% 20% - 50%

(g) Buildings under construction

Buildings under construction are recorded at cost which includes all costs directly related to specific constructions pluscapitalised administration charges incurred in connection with these activities.

(h) Inventories

Current Inventories are measured at the lower of cost and net realisable value. Cost includes the cost ofacquisition/development and other capitalised costs. After development is completed, other holding charges areexpensed as incurred.

Non-Current Inventories consists of both broad hectare land and lots under developement, excluding lots available forexternal sale (current inventory), which are valued at acquisition cost plus capitalised costs. Developed lots on whichdwellings are subsequently constructed by the Authority are transferred to the stock of Rental Properties at fairvalue as determined by the Valuer General at the date of practical completion. The difference between this valuation andthe cost of the land transferred to Rental Properties represents a revaluation increment which is brought to account asan increase in the Asset Revaluation Reserve.

Joint Venture Land

Joint Venture Land represents the Authority's equity in Joint Venture land development projects. Developmentcosts represent the agreed proportion of development costs incurred plus capitalised costs. Land owned by theAuthority is shown at cost plus capitalised costs.

Interests in joint venture operations have been incorporated in the financial statements by including the Authority'sshare of assets employed in the joint ventures, the share of liabilities incurred in relation to the joint ventures and theshare of any expenses incurred in relation to the joint ventures in their respective classification categories. Details of theAuthority's interests are set out in note 21.

(i) Receivables

Receivables are recognised and carried at original invoice amount less any allowance for uncollectible amounts (i.eimpairment). The collectability of receivables is reviewed on an ongoing basis and any receivables identified asuncollectible are written-off. The allowance for uncollectible amounts (doubtful debts) is raised when there is objectiveevidence that the Authority will not be able to collect its debts. The carrying amount is equivalent to fair value as it isdue for settlement within 30 days. See note 51 ‘Financial Instruments' and note 22‘Receivables’.


The impairment is based on historical evidence of debts written off during the course of the year lessbad debts recovered.



(j) Derivative financial instruments and hedging

Keystart uses interest rate caps to hedge its risks associated with interest rate fluctuations. These instruments areinitially recognised at fair value.

The fair value of derivatives that are traded in active markets is based on quoted market price at balance sheetdate. The fair value of derivatives that are not traded in an active market is determined using valuation techniques.

The hedge of the interest rate caps have been accounted for as a cash flow hedge. The portion of gain or loss on thehedging instrument that is determined to be effective is taken directly to equity. The ineffective portion is taken directlyto income statement during the year.

Amounts accumulated in equity are recycled in the income statement when the hedge item affects the profit or loss.

(k) Other financial assets

Loans

Loans are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market.They arise when the Authority provides money, goods or services directly to a debtor with no intention of selling thereceivable. They are included in current assets, except for those with maturities greater than 12 months after the balancesheet date which are classified as non-current assets.

Loans and advances are initially measured at fair value and then subsequently at amortised cost and are stated net ofprovisions for impairments. Transaction costs are included in the measurement of all loans and advances.


A provision for impairment is made when there is objective evidence that the loan will not be collectable. The amountof the provision is the difference between the asset’s carrying amount and the present value of the estimated futurecashflow, discounted at the effectice interest rate.

(l) Intangible Assets

Computing Software and Development

Acquired software items costing less than $1,000 are expensed in the year of acquisition. Where software is anintegral part of the related hardware, it is treated as property, plant and equipment. Where the software is not anintegral part of the related hardware, it is treated as an intangible asset.

All acquired and internally developed intangible assets are initially measured at cost. For assets acquired at no costor for nominal cost, cost is their fair value at the date of acquisition.

Costs associated with the acquisition and development of computer systems and software are amortised from thecommencement of live production of the system. Development costs are deferred to future periods to the extentthat future benefits, are expected beyond any reasonable doubt, to be equal to or exceed those costs. Deferred costsare amortised, from the commencement of live production of the system, on a straight line basis over the period oftheir expected benefit.

Amortisation for intangible assets with finite useful lives is calculated for the period of the expected benefit(estimated useful life) on the straight line basis using rates which are reviewed annually. All intangible assetscontrolled by the Consolidated Entity have a finite useful life and zero residual value. The expected useful lives foreach class of intangible asset are:

2007 2006Computing software 20% - 50% 20% - 50%Computing development 20% 20%

(m) Other non-current Assets

Capital Establishment and Development

Establishment and development costs for the Keystart structure having a future economic benefit are capitalisedand amortised on a straight line basis, over periods during which benefits are expected to be received. This is takenas being five years. Premiums paid on financial instruments are capitalised and amortised on a straight line basis,over the term of the financial instrument.





(n) Non-Current Assets Held For Sale

Non-current assets are classified as assets held for sale if their carrying amount is to be recovered principally through asale transaction rather than through continuing use, the asset is available for immediate sale and the sale is highlyprobable. Non-current assets held for sale are recognised at the lower of carrying amount and fair value less costs to selland are presented separately in the Balance Sheet. These assets are not depreciated or amortised while they areclassified as held for sale.

(o) Impairment of AssetsProperty, plant and equipment and intangible assets are tested for any indication of impairment at each balance sheetdate. Where there is an indication of impairment, the recoverable amount is estimated. Where the recoverable amount isless than the carrying amount, the asset is considered impaired and is written down to the recoverable amount and animpairment loss is recognised. As the Authority is a not-for-profit entity, unless an asset has been identified as asurplus asset, the recoverable amount is the higher of an asset’s fair value less costs to sell and depreciated replacementcost.

The risk of impairment is generally limited to circumstances where an asset’s depreciation is materially understated,where the replacement cost is falling or where there is a significant change in useful life. Each relevant class of assets isreviewed annually to verify that the accumulated depreciation/amortisation reflects the level of consumption orexpiration of asset’s future economic benefits and to evaluate any impairment risk from falling replacement costs.

Intangible assets with an indefinite useful life and intangible assets not yet available for use are tested for impairment ateach balance sheet date irrespective of whether there is any indication of impairment.

(p) Payables Payables are recognised when the Authority becomes obliged to make future payments as a result of a purchase ofassets or services at the amounts payable. The carrying amount is equivalent to fair value, as they are generally settledwithin 30 days. See note 51 ‘Financial Instruments' and note 35 ‘Payables’.

(q) BorrowingsAll loans are initially recognised at cost, being the fair value of the net proceeds received. Subsequent measurement is atamortised cost using the effective interest rate method. See note 51 ‘Financial Instruments’ and note 35 ‘Borrowings’.

(r) Income

Revenue RecognitionRevenue is measured at the fair value of consideration received or receivable. Revenue is recognised for the majorbusiness activities as follows:

(i) Rental Property Revenue

The Authority charges rents in accordance with section 30 of the Housing Act. The basis for the amount of rentto be charged is determined from market rent information received from the Valuer General and due consideration toregional rental markets. Rental property revenue represents the net rental revenue which consists of market rentsless vacancies, concessions and rental subsidies granted throughout the year. Rental income is recognised ona straight-line basis over the lease term.

(ii) SalesRevenue from land inventory is recognised when the contract for sale becomes unconditional.

(iii) Grants, donations, gifts and other non-reciprocal contributions.Revenue is recognised at fair value when the Authority obtains control over the assets comprising thecontributions, usually when cash is received.

(iv) InterestInterest income is recognised as interest accrues using the effective interest method.

GainsGains may be realised or unrealised and are usually recognised on a net basis. These include gains arising on thedisposal of non-current assets.




(s) Insurance

In accordance with Treasurer's Instruction 812 the Authority maintains an appropriate level of insurance cover overinsurable risks.

A comprehensive review of the Authority's insurances was undertaken during 2005/2006. Effective from 1 July 2004the Authority has adopted a self insurance policy for its residential property assets. The Authority's otherinsurance programs continue to be a combination of insurance policies provided by commercial insurance providers andthe Western Australian Government's RiskCover fund.

As per Treasurer’s instruction 825, Insurance is complimented by a comprehensive approach to Risk Management andprudent management policies and practices.

(t) Provisions

Provisions are liabilities of uncertain timing and amount. The Consolidated Entity only recognises a provision wherethere is a present legal, equitable or constructive obligation as a result of a past event and when the outflow of economicbenefits is probable and can be measured reliably. Provisions are reviewed at each balance sheet date and adjusted to reflectthe current best estimate.

(i) Employee Benefits

Annual Leave and Long Service Leave

The liability for annual and long service leave expected to be settled within 12 months after the end of the balancesheet date is recognised and measured at the undiscounted amounts expected to be paid when the liabilities aresettled. Annual and long service leave expected to be settled more than 12 months after the end of the balance sheetdate is measured at the present value of amounts expected to be paid when the liabilities are settled. Leave liabilitiesare in respect of services provided by employees up to the balance sheet date.

When assessing expected future payments consideration is given to expected future wage and salary levels includingnon-salary components such as employer superannuation contributions. In addition, the long service leave liabilityalso considers the experience of employee departures and periods of service.

The expected future payments are discounted to present value using market yields at the balance sheet date onnational government bonds with terms to maturity that match, as closely as possible, the estimated future cashoutflows.

All annual leave and unconditional long service leave provisions are classified as current liabilities as theAuthority does not have an unconditional right to defer settlement of the liability for at least 12 months after thebalance sheet date.

Superannuation

The Government Employees Superannuation Board (GESB) administers the following superannuation schemes.

Employees may contribute to the Pension Scheme, a defined benefit pension scheme now closed to newmembers, or to the Gold State Superannuation Scheme (GSS), a defined benefit lump sum scheme also closedto new members. Employees commencing employment prior to 16 April 2007 who are not members ofeither the Pension or the GSS Schemes became non-contributory members of the West State SuperannuationScheme (WSS). Employees commencing employment on or after 16 April 2007 became members of theGESB Super Scheme (GESBS). Both of these schemes are accumulation schemes. The Authority makesconcurrent contributions to GESB on behalf of employees in compliance with the CommonwealthGovernment’s Superannuation Guarantee (Administration) Act 1992. These contributions extinguish theliability for superannuation charges in respect of the WSS and GESBS Schemes.

The Pension Scheme and the pre-transfer benefit for employees who transferred to the GSS Scheme aredefined benefit schemes. These benefits are wholly unfunded and the liabilities for future payments areprovided for at balance sheet date. The liabilities under these schemes have been calculated separately foreach scheme annually by Mercer Human Resource Consulting Actuaries using the projected unit credit method.

The expected future payments are discounted to present value using market yields at the balance sheet dateon national government bonds with terms to maturity that match, as closely as possible, the estimated futurecash outflows.





(t) Provisions (continued)

Superannuation (continued)

The GSS Scheme, the WSS Scheme, and the GESBS Scheme, where the current service superannuationcharge is paid by the Authority to the GESB, are defined contribution schemes. The liabilities for currentservice superannuation charges under the GSS Scheme, the WSS Scheme, and the GESBS Scheme areextinguished by the concurrent payment of employer contributions to the GESB.

The Gold State Superannuation Scheme is a defined benefit scheme for the purposes of employees andwhole-of-government reporting. However, from an agency perspective, apart from the transfer benefits, it isa defined contribution plan under AASB 119.

(ii) Other

Employment on-costs

Employment on-costs, including workers’ compensation insurance and payroll tax, are not employee benefits andare recognised separately as liabilities and expenses when the employment to which they relate has occurred.Employment on-costs are included as part of the Authority’s ‘Other expenses' and the related liability isincluded in Employment on-costs provision.

Development Levies

Is a provision calculated on lots sold and community projects representing fencing and landsacaping incentives forfirst home buyers to purchase Authority land. The provision represents the estimated liability at balance sheet datefor future claims by the purchasers against the Authority.

(u) Accrued Salaries

Accrued salaries represent the amount due to staff but unpaid at the end of the financial year, as the end of the last payperiod for that financial year does not coincide with the end of the financial year. The Authority considers thecarrying amount of accrued salaries to be equivalent to the net fair value.

(v) Borrowing costsBorrowing costs are expensed when incurred and represents the total finance costs in the Income statement.

(w) Superannuation expenseThe superannuation expense of the defined benefit plans is made up of the following elements:

• Current service cost;• Interest cost (unwinding of the discount);• Actuarial gains and losses; and• Past service cost.

Actuarial gains and losses of the defined benefit plans are recognised immediately as income or expense in the incomestatement.

The superannuation expense of the defined contribution plans is recognised as and when the contributions fall due andforms part of the 'Employee Benefits expense'.

See also note 2(s)(i) ‘Provisions – Employee Benefits’ under the heading “Superannuation”.

(x) Leases

The Authority has entered into a number of operating lease arrangements for buildings and vehicles where the lessorseffectively retain the majority of the risks and benefits incidental to ownership of the items held under the operatingleases. Equal instalments of the lease payments are charged to the Income Statement over the lease term, as this isrepresentative of the pattern of benefits to be derived from the leased property.

(y) Rental Expenses

Expenses incurred relating to the Authority's owned or leased rental properties are accounted for in the RentalExpenses line of the Income Statement. These expenses which directly relate to the Rental program includemaintenance, rates, insurance expenses and renovations and improvements.




(z) New Living Expenses

Expenses incurred relating to the Authority's owned rental properties involved in the New Living Program areaccounted for in the New Living Expenses line of the Income Statement. These expenses include renovations and minorimprovements.

(aa) Comparative Figures

Comparative figures are, where appropriate, reclassified to be comparable with the figures presented in the currentfinancial year.

(ab) Segment Information

The Consolidated Entity's operations are divided into four specific services. These are:Rental Public Housing - providing access to affordable rental accommodation for low to moderate income WesternAustralians;Rental Government Employees - providing access to rental accommodation for government employees in regional areas.Loans - providing realistic home ownership opportunities for low to moderate income Western Australiansprovided by the Housing Authority and through its Keystart HousingScheme;Land operations - provision of low to medium priced subdivided land for sale.

(ac) Financial Instruments

The Financial Instrument note (note 51) has further accounting policy disclosure.

(ad) Cash and Cash Equivalents

For the purpose of the Cash Flow Statement, cash and cash equivalents comprise cash on hand and short-term depositswith original maturities of three months or less that are readily convertible to a known amount of cash and which aresubject to insignificant risk of changes in value.

(ae) Capitalisation policy

The cost of non-current assets constructed by theAuthority includes the cost of all materials used in construction,direct labour costs incurred on the project during construction and an appropriate proportion of overheads.

(af) Income tax

The consolidated entity is an income tax exempt body.

(ag) Contributed equity

UIG Interpretation 1038 ‘Contributions by Owners Made to Wholly-Owned Public Sector Entities’ requires transfersin the nature of equity contributions to be designated by the Government (the owner) as contributions by owners (atthe time of, or prior to transfer) before such transfers can be recognised as equity contributions. Capital contributions(appropriations) have been designated as contributions by owners by TI 955 ‘Contributions by Owners made toWholly Owned Public Sector Entities’ and have been credited directly to Contributed Equity.

Transfer of net assets to/from other agencies are designated as contributions byowners where the transfers are non-discretionary and non-reciprocal.




3. Disclosure of changes in accounting policy and estimates.

Initial application of an Australian Accounting Standard

The Authority has applied the following Australian Accounting Standards and Australian Accounting Interpretationseffective for annual reporting periods beginning on or after 1 July 2006:

(a) AASB 2005-9 ‘Amendments to Australian Accounting Standards [AASB 4, AASB 1023, AASB 139 & AASB 132]’(Financial guarantee contracts). The amendment deals with the treatment of financial guarantee contracts, creditinsurance contracts, letters of credit or credit derivative default contracts as either an “insurance contract” under AASB4 ‘Insurance Contracts’ or as a “financial guarantee contract” under AASB 139 ‘Financial Instruments: Recognition andMeasurement’. The Authority does not undertake these types of transactions resulting in no financial impact inapplying the Standard.

(b) UIG Interpretation 4 ‘Determining whether an Arrangement Contains a Lease’. This Interpretation deals witharrangements that comprise a transaction or a series of linked transactions that may not involve a legal form of a leasebut by their nature are deemed to be leases for the purposes of applying AASB 117 ‘Leases’. At balance sheet date, theAuthority has not entered into any arrangements as specified in the Interpretation resulting in no impact inapplying the Interpretation.

(c) UIG 9 Interpretation 'Reassessment of Embedded Derivatives'. This interpretation deals with the assessment of anembedded derivative. An entity shall assess whether an embedded derivative is required to be separated from the hostcontract and accounted for as a derivative when the entity first becomes a party to the contract. Subsequentreassessment is prohibited unless there is a change in the terms of the contract that significantly modifies the cash flowsthat otherwise would be required under the contract, in which case reassessment is required. An entity determineswhether a modification to cash flows is significant by considering the extent to which the expected future cash flowsassociated with the embedded derivative, the host contract or both have changed and whether the change is significantrelative to the previously expected cash flows on the contract.At balance sheet date the Authority has not entered into any arrangements as specified in the Interpretation resulting inno impact in applying the Interpretation.

The following Australian Accounting Standards and Interpretations are not applicable to the Authority as they have noimpact or do not apply to not-for-profit entities:

AASB Standards and Interpretation2005-1 AASB 139 (Cash flow hedge accounting of forecast intragroup

transactions)2005-5 ‘Amendments to Australian Accounting Standards (AASB

1 & AASB 139)’1038 & AASB 1023)’

2006-1 AASB 121 (Net investment in foreign operations)2006-3 ‘Amendments to Australian Accounting Standards [AASB

1045]’2006-4 ‘Amendments to Australian Accounting Standards [AASB 134]’2007-2 ‘Amendments to Australian Accounting Standards arising from

AASB Interpretation 12 [AASB 1, AASB 117, AASB 118,AASB 120, AASB 121, AASB 127, AASB 131 & AASB 139]’ –paragraph 9

UIG 5 ‘Rights to Interests arising from Decommissioning,Restoration and Environmental Rehabilitation Funds’.

UIG 6 ‘Liabilities arising from Participating in a Specific Market –Waste Electrical and Electronic Equipment’.

UIG 7 ‘Applying the Restatement Approach under AASB 129 FinancialReporting in Hyperinflationary Economies’.

UIG 8 Scope of AASB 2 Share Based Payments'



3. Disclosure of changes in accounting policy and estimates(continued)

Future impact of Australian Accounting Standards not yet operative

The Authority cannot early adopt an Australian Accounting Standard or Australian Accounting Interpretation unlessspecifically permitted by TI 1101 ‘Application of Australian Accounting Standards and Other Pronouncements’.Consequently, the Authority has not applied the following Australian Accounting Standards and Australian AccountingInterpretations that have been issued but are not yet effective. These will be applied from their application date:

(a) AASB 7 ‘Financial Instruments: Disclosures’ (including consequential amendments in AASB 2005-10 ‘Amendments toAustralian Accounting Standards [AASB 132, AASB 101, AASB 114, AASB 117, AASB 133, AASB 139, AASB 1,AASB 4, AASB 1023 & AASB 1038]’). This Standard requires new disclosures in relation to financial instruments.The Standard is considered to result in increased disclosures, both quantitative and qualitative of the Authority’sexposure to risks, enhanced disclosure regarding components of the Authority’s financial position and performance, andpossible changes to the way of presenting certain items in the financial statements. The Authority does not expect anyfinancial impact when the Standard is first applied. The Standard is required to be applied to annual reporting periodsbeginning on or after 1 January 2007.

(b) AASB 2005-10 ‘Amendments to Australian Accounting Standards (AASB 132, AASB 101, AASB 114, AASB 117,AASB 133, AASB 139, AASB 1, AASB 4, AASB 1023, & AASB 1038)’. The amendments are as a result of the issueof AASB 7 ‘Financial Instruments: Disclosures’, which amends the financial instrument disclosure requirements inthese standards. The Authority does not expect any financial impact when the Standard is first applied. The Standard isrequired to be applied to annual reporting periods beginning on or after 1 January 2007.

(c) AASB 101 ‘Presentation of Financial Statements’. This Standard was revised and issued in October 2006 so thatAASB 101 has the same requirements as IAS 1 ‘Presentation of Financial Statements’ (as issued by the IASB) inrespect of for-profit entities. The Authority is a not-for-profit entity and consequently does not expect any financialimpact when the Standard is first applied. The Standard is required to be applied to annual reporting periods beginningon or after 1 January 2007.

(d) AASB 2007-4 ‘Amendments to Australian Accounting Standards arising from ED 151 and Other Amendments (AASB1, 2, 3, 4, 5, 6, 7, 102, 107, 108, 110, 112, 114, 116, 117, 118, 119, 120, 121, 127, 128, 129, 130, 131, 132, 133, 134,136, 137, 138, 139, 141, 1023 & 1038)’. This Standard introduces policy options and modifies disclosures. Theseamendments arise as a result of the AASB decision that, in principle, all options that currently exist under IFRSsshould be included in the Australian equivalents to IFRSs and additional Australian disclosures should be eliminated,other than those now considered particularly relevant in the Australian reporting environment. The Department ofTreasury and Finance has indicated that it will mandate to remove the policy options added by this amending Standard.This will result in no impact as a consequence of application of the Standard. The Standard is required to be applied toannual reporting periods beginning on or after 1 July 2007.

(e) AASB 2007-5 ‘Amendment to Australian Accounting Standard – Inventories Held for Distribution by Not-for-ProfitEntities (AASB 102)’. This amendment changes AASB 102 ‘Inventories’ so that inventories held for distribution bynot for- profit entities are measured at cost, adjusted when applicable for any loss of service potential. The Authoritydoes not have any inventories held for distribution so does not expect any financial impact when the Standard is firstapplied. The Standard is required to be applied to annual reporting periods beginning on or after 1 July 2007.

(f) AASB Interpretation 4 ‘Determining whether an Arrangement Contains a Lease [revised]’. This Interpretation wasrevised and issued in February 2007 to specify that if a public-to-private service concession arrangement meets thescope requirements of AASB Interpretation 12 ‘Service Concession Arrangements’ as issued in February 2007, itwould not be within the scope of Interpretation 4. At balance sheet date, the Authority has not entered into anyarrangements as specified in the Interpretation or within the scope of Interpretation 12, resulting in no impact when theInterpretation is first applied. The Interpretation is required to be applied to annual reporting periods beginning on orafter 1 January 2008.



3. Disclosure of changes in accounting policy and estimates(continued)

(g) AASB Interpretation 12 ‘Service Concession Arrangements’. This Interpretation was issued in February 2007 andgives guidance on the accounting by operators (usually a private sector entity) for public-to-private service concessionarrangements. It does not address the accounting by grantors (usually a public sector entity). It is currently unclear asto the application of the Interpretation to the Authority if and when public-to-private service concession arrangementsare entered into in the future. At balance sheet date, the Authority has not entered into any public-to-private serviceconcession arrangements resulting in no impact when the Interpretation is first applied. The Interpretation is requiredto be applied to annual reporting periods beginning on or after 1 January 2008.

(h) AASB Interpretation 129 ‘Service Concession Arrangements: Disclosures [revised]’. This Interpretation was revisedand issued in February 2007 to be consistent with the requirements in AASB Interpretation 12 ‘Service ConcessionArrangements’ as issued in February 2007. Specific disclosures about service concession arrangements entered into arerequired in the notes accompanying the financial statements, whether as a grantor or an operator. At balance sheet date,the Authority has not entered into any public-to-private service concession arrangements resulting in no impact whenthe Interpretation is first applied. The Interpretation is required to be applied to annual reporting periods beginning onor after 1 January 2008.

The following Australian Accounting Standards and Interpretations are not applicable to the Authority as they will have noimpact or do not apply to not-for-profit entities:

AASB Standards and InterpretationAASB 8 ‘Operating Segments’

AASB 1049 ’Financial Reporting of General Government Sectors byGovernments’.

AASB 2007-1 ‘Amendments to Australian Accounting Standards arising from AASBInterpretation 11 [AASB 2]’

AASB 2007-2 ’Amendments to Australian Accounting Standards arising from AASBInterpretation 12 [AASB 1, AASB 117, AASB 118, AASB 120, AASB121, AASB 127, AASB 131 & AASB 139]’ – paragraphs 1 to 8

AASB 2007-3 ’Amendments to Australian Accounting Standards arising from AASB8 [AASB 5, AASB 6, AASB 102, AASB 107, AASB 119, AASB 127,AASB 134, AASB 136, AASB 1023 & AASB 1038]’

AASB 2007-6 ’Amendments to Australian Accounting Standards arising from AASB123 [AASB 1, AASB 101, AASB 107, AASB 107, AASB 111, AASB 116,AASB 138, Interpretation 1 and Interpretation 12]’

AASB 2007-7 ’Amendments to Australian Accounting Standards arising as a consequence of areview of Australian equivalents to International Financial Reporting Standards.[AASB 1, AASB 2, AASB 4, AASB 5, AASB 107, AASB 128]

Interpretation 10 ’Financial Reporting and Impairment’Interpretation 11 ’AASB 2 – Group and Treasury Share Transactions’

4. Key sources of estimation uncertainty

Defined benefit superannuation plans

In determining the Authority’s ultimate cost of its defined benefit superannuation plans, actuarial assumptions are requiredto be made. The principal actuarial assumptions used are disclosed in note 37 ‘Provisions’.

Long service leave liability

In determining the Authority’s ultimate cost of its long service leave liability, actuarial assumptions are required to be made.The principal actuarial assumptions used are disclosed in note 37 ‘Provisions’.

�5 H

ousi

ng A

utho

rity

20

06

-07

An

nu

al

Re

po

rt ©

Dep

artm

ent o

f Hou

sing

and

Wor

ks 2

007

THE

HO

USI

NG

AU

THO

RIT

Y A

ND

CO

NTR

OLL

ED E

NTI

TIES

5 ( i

).

Sche

dule

of I

ncom

e an

d E

xpen

ses b

y Se

rvic

e

200

7C

ON

SOL

IDA

TE

D 2

006

Ren

tal

Ren

tal

Loan

sLa

ndEl

imin

atio

nTo

tal

Ren

tal

Loan

sLa

ndEl

imin

atio

nTo

tal

Publ

icG

over

nmen

tPu

blic

Hou

sing

Empl

oyee

sH

ousi

ng$0

00$0

00$0

00$0

00$0

00$0

00IN

CO

ME

Not

e$0

00$0

00$0

00$0

00$0

00R

even

ue90

337

5-

244,

654

-24

5,93

2Sa

les

61,

789

-19

2,81

3-

194,

602

--

-14

,660

(14,

660)

-In

ters

egm

ent s

ales

--

9,62

1(9

,621

)-

143,

778

78,9

4022

534

-22

3,27

4R

enta

l rev

enue

713

6,56

550

282

-13

6,89

713

6,93

9-

--

-13

6,93

9C

omm

onw

ealth

gra

nts a

nd c

ontri

butio

ns8

144,

977

--

-14

4,97

72,

140

271

119,

832

5-

122,

248

Inte

rest

reve

nue

91,

638

134,

608

2-

136,

248

2,60

3-

--

-2,

603

Dev

elop

ers c

ontri

butio

ns2,

245

--

-2,

245

2,17

816

45,

511

2,31

8-

10,1

71O

ther

reve

nues

10

610

9,54

42,

730

-12

,884

288,

541

79,7

5012

5,36

526

2,17

1(1

4,66

0)74

1,16

7To

tal r

even

ue28

7,82

414

4,20

220

5,44

8(9

,621

)62

7,85

3G

ains

6589

6,58

7(1

)-

6,74

0G

ain

on th

e di

spos

al o

f non

-cur

rent

ass

ets

11-

5,43

7-

-5,

437

6589

6,58

7(1

)-

6,74

0To

tal g

ains

-5,

437

--

5,43

728

8,60

679

,839

131,

952

262,

170

(14,

660)

747,

907

Tota

l inc

ome

287,

824

149,

639

205,

448

(9,6

21)

633,

290

EX

PEN

SES

563

374

-11

0,62

4-

111,

561

Cos

t of s

ales

61,

052

-10

6,98

5-

108,

037

121,

482

56,1

244

163

-17

7,77

3R

enta

l exp

ense

s12

116,

075

1620

9-

116,

300

38,2

10-

--

-38

,210

New

Liv

ing

expe

nses

1240

,930

--

-40

,930

94,8

15-

62-

-94

,877

Com

mun

ity su

ppor

t exp

ense

1398

,320

150

--

98,4

7039

,231

4,89

12,

514

4,98

7-

51,6

23Em

ploy

ee b

enef

its e

xpen

se14

34,9

512,

510

4,33

4-

41,7

9513

,269

686

2,96

21,

374

-18

,291

Supp

lies a

nd se

rvic

es15

11,6

352,

986

895

-15

,516

60,8

895,

696

3,69

929

4-

70,5

78D

epre

ciat

ion

& a

mor

tisat

ion

expe

nse

1652

,183

3,95

021

5-

56,3

4826

,355

6,88

686

,927

8,78

3-

128,

951

Fina

nce

cost

s 17

22,7

0710

0,95

38,

776

-13

2,43

64,

082

196

488

208

-4,

974

Acc

omm

odat

ion

expe

nses

183,

831

436

105

-4,

372

12,1

1717

38,

973

4,64

0-

25,9

03O

ther

exp

ense

s 19

7,27

211

,938

4,65

1-

23,8

61-

--

--

-Lo

ss o

n th

e di

spos

al o

f non

-cur

rent

ass

ets

115,

139

-4

-5,

143

411,

013

75,0

2610

5,62

913

1,07

3-

722,

741

Tota

l exp

ense

s 39

4,09

512

2,93

912

6,17

4-

643,

208

Prof

it/(lo

ss) b

efor

e gr

ants

and

subs

idie

s (1

22,4

07)

4,81

326

,323

131,

097

(14,

660)

25,1

66gr

ants

and

subs

idie

s fro

m g

over

nmen

t(1

06,2

71)

26,7

0079

,274

(9,6

21)

(9,9

18)

32,5

78-

--

32,5

78G

rant

s and

subs

idie

s fro

m g

over

nmen

t8

36,4

73-

--

36,4

73Pr

ofit/

(loss

) afte

r gra

nts a

nd su

bsid

ies

(89,

829)

4,81

326

,323

131,

097

(14,

660)

57,7

44gr

ants

and

subs

idie

s fro

m g

over

nmen

t(6

9,79

8)26

,700

79,2

74(9

,621

)26

,555

79,7

27(7

8,28

8)(1

,439

)-

-In

ters

egm

ent t

rans

fers

3,65

1-

(3,6

51)

--

(10,

102)

4,81

3(5

1,96

5)12

9,65

8(1

4,66

0)57

,744

Prof

it/(lo

ss) f

or th

e pe

riod

(66,

147)

26,7

0075

,623

(9,6

21)

26,5

55

�6 H

ousi

ng A

utho

rity

20

06

-07

An

nu

al

Re

po

rt ©

Dep

artm

ent o

f Hou

sing

and

Wor

ks 2

007


THE

HO

USI

NG

AU

THO

RIT

Y A

ND

CO

NTR

OLL

ED E

NTI

TIES

5 ( i

).

Sche

dule

of I

ncom

e an

d E

xpen

ses b

y Se

rvic

e ( c

ontin

ued

)

2007

TH

E H

OU

SIN

G A

UT

HO

RIT

Y20

06R

enta

lR

enta

lLo

ans

Land

Elim

inat

ion

Tota

lR

enta

lLo

ans

Land

Elim

inat

ion

Tota

lPu

blic

Gov

ernm

ent

Publ

icH

ousi

ngEm

ploy

ees

Hou

sing

$000

$000

$000

$000

$000

$000

INC

OM

EN

ote

$000

$000

$000

$000

$000

Rev

enue

903

375

-24

4,65

4-

245,

932

Sale

s6

1,78

9-

192,

813

-19

4,60

2-

--

14,6

60(1

4,66

0)-

Inte

rseg

men

t sal

es-

-9,

621

(9,6

21)

-14

3,77

878

,940

2253

4-

223,

274

Ren

tal r

even

ue7

136,

565

5028

2-

136,

897

136,

939

--

--

136,

939

Com

mon

wea

lth g

rant

s and

con

tribu

tions

814

4,97

7-

--

144,

977

2,14

027

191

,474

5-

93,8

90In

tere

st re

venu

e9

1,63

810

3,59

32

-10

5,23

32,

603

--

--

2,60

3D

evel

oper

s con

tribu

tions

2,24

5-

--

2,24

52,

178

164

26,3

372,

318

-30

,997

Oth

er re

venu

es

106,

610

21,1

772,

730

-30

,517

288,

541

79,7

5011

7,83

326

2,17

1(1

4,66

0)73

3,63

5To

tal r

even

ue29

3,82

412

4,82

020

5,44

8(9

,621

)61

4,47

1G

ains

6589

6,59

7(1

)-

6,75

0G

ain

on th

e di

spos

al o

f non

-cur

rent

ass

ets

11-

5,44

4-

-5,

444

6589

6,59

7(1

)-

6,75

0To

tal g

ains

-5,

444

--

5,44

428

8,60

679

,839

124,

430

262,

170

(14,

660)

740,

385

Tota

l inc

ome

293,

824

130,

264

205,

448

(9,6

21)

619,

915

EX

PEN

SES

563

374

-11

0,62

4-

111,

561

Cos

t of s

ales

61,

052

-10

6,98

5-

108,

037

121,

482

56,1

244

163

-17

7,77

3R

enta

l exp

ense

s12

116,

075

1620

9-

116,

300

38,2

10-

--

-38

,210

New

Liv

ing

expe

nses

1240

,930

--

-40

,930

94,8

15-

62-

-94

,877

Com

mun

ity su

ppor

t exp

ense

1398

,320

150

--

98,4

7039

,231

4,89

12,

375

4,98

7-

51,4

84Em

ploy

ee b

enef

its e

xpen

se14

34,9

512,

366

4,33

4-

41,6

5113

,269

686

567

1,37

4-

15,8

96Su

pplie

s and

serv

ices

1511

,635

455

895

-12

,985

60,8

895,

696

2,08

029

4-

68,9

59D

epre

ciat

ion

& a

mor

tisat

ion

expe

nse

1652

,183

1,92

921

5-

54,3

2726

,355

6,88

688

,989

10,1

27-

132,

357

Fina

nce

cost

s 17

22,7

0710

1,00

48,

776

-13

2,48

74,

082

196

8220

8-

4,56

8A

ccom

mod

atio

n ex

pens

es18

3,83

145

105

-3,

981

12,1

1717

32,

538

4,64

0-

19,4

68O

ther

exp

ense

s 19

7,27

23,

522

4,65

1-

15,4

45-

--

Loss

on

the

disp

osal

of n

on-c

urre

nt a

sset

s11

5,13

9-

4-

5,14

341

1,01

375

,026

96,6

9713

2,41

7-

715,

153

Tota

l exp

ense

s 39

4,09

510

9,48

712

6,17

4-

629,

756

Prof

it/(lo

ss) b

efor

e gr

ants

and

subs

idie

s (1

22,4

07)

4,81

327

,733

129,

753

(14,

660)

25,2

32fr

om g

over

nmen

t(1

00,2

71)

20,7

7779

,274

(9,6

21)

(9,8

41)

32,5

78-

--

32,5

78G

rant

s and

subs

idie

s fro

m g

over

nmen

t8

36,4

73-

--

36,4

73Pr

ofit/

(loss

) afte

r gra

nts a

nd su

bsid

ies

(89,

829)

4,81

327

,733

129,

753

(14,

660)

57,8

10fr

om g

over

nmen

t(6

3,79

8)20

,777

79,2

74(9

,621

)26

,632

79,7

27(7

8,28

8)(1

,439

)-

-In

ters

egm

ent t

rans

fers

3,65

1-

(3,6

51)

--

(10,

102)

4,81

3(5

0,55

5)12

8,31

4(1

4,66

0)57

,810

Prof

it/(lo

ss) f

or th

e pe

riod

(60,

147)

20,7

7775

,623

(9,6

21)

26,6

32



Consolidated Parent2007 2006 2007 2006

6. Trading profit $000 $000 $000 $000

SalesJoint venture land 168,043 145,615 168,043 145,615Land 77,889 48,752 77,889 48,752House and land packages - 235 - 235

245,932 194,602 245,932 194,602Less cost of land sold

Joint venture land 76,652 86,129 76,652 86,129Land 34,909 21,803 34,909 21,803House and land packages - 105 - 105

111,561 108,037 111,561 108,037Trading Profit 134,371 86,565 134,371 86,565

7. Rental revenue

Rental properties 217,452 134,484 217,452 134,484Amenities heating 3,874 839 3,874 839Commercial properties 1,945 1,574 1,945 1,574Community housing properties 3 - 3 -Total rental revenue 223,274 136,897 223,274 136,897

8. Commonwealth and State grants

Commonwealth grants and contributionsAboriginal housing 53,131 62,499 53,131 62,499Commonwealth rental grants 73,137 71,974 73,137 71,974Crisis accommodation & community housing 10,671 10,504 10,671 10,504Total Commonwealth grants 136,939 144,977 136,939 144,977

State grants and subsidiesDepartment of Treasury and Finance 31,710 29,063 31,710 29,063Department of Indigenous Affairs 868 6,082 868 6,082Department of Local Government and Regional Development - 86 - 86Department of Main roads - 1,050 - 1,050Other Grants - 192 - 192Total State grants 32,578 36,473 32,578 36,473

9. Interest revenue

Loan interestKeystart secured mortgage advances 102,789 115,684 - -Loans to housing societies - 102 - 102

102,789 115,786 - 102The Housing Authority loan schemes 852 5,282 852 5,282Less mortgage subsidies 3 10 3 10

849 5,272 849 5,272Total Loan Interest 103,638 121,058 849 5,374

Other interestInterest on cash at bank 7,109 6,192 7,109 6,192Interest on investments 11,444 8,967 85,875 93,636Interest other 57 31 57 31Total other interest 18,610 15,190 93,041 99,859Total interest revenue 122,248 136,248 93,890 105,233

10. Other revenue

Bad debts recovered 550 592 550 592Conveyancing fees 2,687 4,410 2,687 4,410Dividends - - 24,545 24,199Assets received free of charge 10 1 10 1Other revenue 6,924 7,881 3,205 1,315Total other revenues 10,171 12,884 30,997 30,517





11. Net gain on disposal of non-current assets $000 $000 $000 $000

Costs on disposal of non-current assetsRental properties 76,356 97,746 76,356 97,746Community housing properties - 2,265 - 2,265Shared equity properties 12,228 16,778 12,228 16,778Properties plant & equipment 58 83 48 76

88,642 116,872 88,632 116,865Proceeds from the disposal of assets

Rental properties 76,544 92,609 76,544 92,609Community housing properties - 2,292 - 2,292Shared equity properties 18,829 22,224 18,829 22,224Properties plant & equipment 9 41 9 41

95,382 117,166 95,382 117,166Net gain 6,740 294 6,750 301

12. Rental expenses

Maintenance expenses 54,117 38,362 54,117 38,362Debt collection expenses 1,156 1,302 1,156 1,302Estate management expenses 4,493 4,078 4,493 4,078General expenses 7,213 6,808 7,213 6,808Insurance expenses 5,629 4,397 5,629 4,397Rates expenses 49,843 43,296 49,843 43,296Renovations & improvements 23,261 18,057 23,261 18,057Non cancellable operating leases:- Rental properties 32,061 - 32,061 -Total rental expenses 177,773 116,300 177,773 116,300

New living expenses

Renovations & improvements 35,909 38,199 35,909 38,199Infrastructure expenses 1,628 1,933 1,628 1,933Demolition costs 673 798 673 798Total new living expenses 38,210 40,930 38,210 40,930

13. Community support expense

Aboriginal Housing (i) 91,589 95,685 91,589 95,685Community Housing (ii) 3,226 2,635 3,226 2,635Mortgage and rental assistance program -

cash assistance 62 150 62 150Total community support expense 94,877 98,470 94,877 98,470

(i) Aboriginal housing community support consists of expenses incurred in the provision of remoteindigenous community housing and support programmes.

(ii) Community housing support consists of expenses incurred in the provision of housing undertaken bycommunity groups.




14. Employee benefits expense $000 $000 $000 $000

Salaries & wages 53,066 48,538 52,953 48,426Superannuation - defined contribution plans 4,767 4,559 4,767 4,559Superannuation - defined benefit plans 3,563 1,622 3,563 1,622

61,396 54,719 61,283 54,607Less Credits:Administration capitalised 3,523 4,528 3,523 4,528Recoups 6,250 8,396 6,276 8,428Total credits 9,773 12,924 9,799 12,956Total employee benefits expenses 51,623 41,795 51,484 41,651

15. Supplies and services

Other personnel costs 2,777 2,126 2,777 2,126Travel 1,262 849 1,262 849Stationery & supplies 1,032 988 871 798Communication 2,435 2,553 2,273 2,329Other costs & expenses 8,103 6,465 6,182 4,573External and Internal Audit fees 650 682 499 457Motor vehicles 961 755 961 755

17,220 14,418 14,825 11,887Lease expensesNon cancellable operating leases:- Motor vehicles 1,071 1,098 1,071 1,098

1,071 1,098 1,071 1,098Total supplies and services 18,291 15,516 15,896 12,985

16. Depreciation and Amortisation expense

DepreciationRental properties 60,290 46,508 60,290 46,508Community housing properties 4,070 3,766 4,070 3,766Shared equity properties 1,989 1,818 1,989 1,818Other properties 583 619 583 619Plant & equipment 2,058 2,189 1,408 1,257

AmortisationIntangible assets 619 359 619 359Other assets 969 1,089 - -

Total depreciation and amortisation expense 70,578 56,348 68,959 54,327

17. Finance costs

Interest on Interest-bearing liabilities 128,951 132,436 132,357 132,487Total finance costs 128,951 132,436 132,357 132,487





18. Accommodation expenses $000 $000 $000 $000

Office rental & accommodation 3,881 3,315 3,875 3,307Lease expensesNon cancellable operating leases:- Office properties 1,093 1,057 693 674Total accommodation expenses 4,974 4,372 4,568 3,981

19. Other expenses

Impairment expense 3,488 (2,002) 3,679 (2,015)Fees - Keystart 6,098 8,217 - -Grants & subsidies 177 1,293 177 1,293Land expenses 3,240 2,907 3,240 2,907Loan scheme expenses 789 1,271 789 1,271Write down of assets classified as held for sale 1,241 1,411 1,241 1,411Employee on costs 3,503 2,983 3,503 2,983Other expenses 7,367 7,781 6,839 7,595Total other expenses 25,903 23,861 19,468 15,445

Consolidated Parent2007 2006 2007 2006$000 $000 $000 $000

20. Cash and cash equivalents

Cash at bank - operational 55,878 99,810 46,967 82,426Cash at bank - superannuation 20,700 20,700 20,700 20,700

Cash advances 20 20 20 2076,598 120,530 67,687 103,146

Restricted cash Rental tenants bonds 11,214 10,324 11,214 10,324Joint venture cash 23,166 21,965 23,166 21,965

34,380 32,289 34,380 32,289Total cash and cash equivalents 110,978 152,819 102,067 135,435

Rental Tenants Bonds represents bond monies received by the Authority from rental clients. These funds are held intrust in accordance with the Residential Tenancies act. Joint Venture Cash is restricted for the use of joint ventureoperations and is controlled by the respective management groups.

21. Inventories

CurrentLand held for sale at cost (Note 2(h)) currentCost of acquisition and development 19,933 13,171 19,933 13,171Capitalised rates, taxes, administration and interest. 3,006 1,559 3,006 1,559

22,939 14,730 22,939 14,730Joint venture land at cost (Note 2 (h)) 52,566 16,496 52,566 16,496House and land packages at cost 1,274 1,060 1,274 1,060Total current inventories 76,779 32,286 76,779 32,286

Non-currentLand held for sale at cost (Note 2(h)) non - currentCost of acquisition and development 360,186 302,787 360,186 302,787

360,186 302,787 360,186 302,787Joint venture land at cost (a) 72,045 83,549 72,045 83,549Total non-current inventories 432,231 386,336 432,231 386,336



21. Inventories (Continued)

(a) The Authority enters into joint venture operations for the development of Land holdings. Listed below are the current joint venture operations

ButlerThe Authority holds a 46.78% interest in a joint venture operation named Ocean Springs for the developmentof land at Brighton estate. The Authority contributes development costs and receives revenues on the basis ofthe interest held in the joint venture operation.

Brighton Beachside Estate The Authority holds a 50% interest in a joint venture operation named Brighton BeachsideEstate for the development of land at Quinns. The Authority contributes development costs and receivesrevenues on the basis of the interest held in the joint venture operation.

Dalyellup BeachThe Authority holds a 50% interest in a joint venture operation named Dalyellup Beach forthe development of land at Dalyellup Beach, Bunbury. The Authority contributes development costs andreceives revenues on the basis of the interest held in the joint venture operation.

EllenbrookThe Authority holds a 47.138% interest in a joint venture operation named Ellenbrook for thedevelopment of land at Ellenbrook. The Authority contributes development costs and receives revenues onthe basis of the interest held in the joint venture operation.

SeacrestThe Authority holds a 50% interest in a joint venture operation named Seacrest for thedevelopment of land at Wandina, Geraldton. The Authority contributes development costs and receivesrevenues on the basis of the interest held in the joint venture operation.

Oyster HarbourThe Authority holds a 50% interest in the Oyster Harbour joint venture for the development of land at theOyster Harbour Estate, Bayonet Head, Albany. The Authority contributes development costs and receivesrevenues on the basis of the interest held in the joint venture operation.

BeeliarThe Authority holds an interest in a joint venture operation named Beeliar for the development of Authorityland in Beeliar. The Authority does not contribute to the development of the land. The revenue received is 33%of the sale price of each lot and 50% share in the net proceeds after development costs, management fees andthe Authority's 33% has been deducted.

ClarksonThe Authority holds an interest in a joint venture operation named Clarkson for the development of Authorityland in Clarkson. The Authority does not contribute to the development of the land. The revenue received is17.5% of the sale price of each lot and 30% share in the net proceeds after development costs, management feesand the Authority's 17.5% has been deducted.

Woodrise EstateThe Authority holds an interest in a joint venture operation named Woodrise Estate for the development ofAuthority land in Albany. The Authority does not contribute to the development of the land. The revenuereceived is 30% share in the profit after all development costs have been met.

WellardThe Authority holds an interest in a joint venture operation named Wellard for the development of Authorityland in Wellard. The Authority does not contribute to the development of the land. The revenue received is10% of the sale price of each lot and 80% share in the net proceeds after development costs, management feesand the Authority's 10% has been deducted.

Banksia GroveThe Authority holds an interest in the Banksia Grove joint venture for the development of its landholdings atBanksia Grove. The Authority does not contribute to the development of the land. The revenue received is35% of the sale price of each lot and 40% share in the net proceeds after development costs, management feesand the Authority's 35% has been deducted.

102

Hou

sing

Aut

hori

ty 2

00

6-0

7 A

nn

ua

l R

ep

ort

© D

epar

tmen

t of H

ousin

g an

d W

orks

200

7

THE

HO

USI

NG

AU

THO

RIT

Y A

ND

CO

NTR

OLL

ED E

NTI

TIES

21.

Inve

ntor

ies (

Con

tinue

d)JO

INT

VE

NT

UR

E O

PER

AT

ION

S20

07B

utle

rB

right

onD

alye

llup

Elle

nbro

okSe

acre

stO

yste

rB

eelia

rC

lark

son

Woo

dris

eW

ella

rdB

anks

iaTo

tal

Bea

chsi

deB

each

Har

bour

Esta

teG

rove

Esta

te$0

00$0

00$0

00$0

00$0

00$0

00$0

00$0

00$0

00$0

00$0

00$0

00C

UR

RE

NT

ASS

ET

SC

ash

and

cash

equ

ival

ents

14,3

5018

4,45

43,

240

818

286

--

--

-23

,166

Rec

eiva

bles

3,63

4-

2,22

95,

265

9047

--

--

-11

,265

Inve

ntor

ies

14,3

29-

11,9

4823

,826

-2,

463

--

--

-52

,566

Oth

er c

urre

nt a

sset

s-

-1

3,17

4-

--

--

-3,

175

32,3

1318

18,6

3235

,505

908

2,79

6-

--

--

90,1

72N

ON

-CU

RR

EN

T A

SSE

TS

Rec

eiva

bles

--

-1,

886

4-

--

--

1,89

0O

ffic

e Eq

uipm

ent

--

-81

--

--

--

81B

uild

ings

681

-1,

055

373

--

--

--

2,10

9D

evel

opm

ent c

osts

(1)

12,5

68-

-7,

462

4,15

0-

--

--

24,1

8013

,249

-1,

055

9,80

24,

154

--

--

--

28,2

60T

otal

ass

ets

45,5

6218

19,6

8745

,307

5,06

22,

796

--

--

-11

8,43

2

CU

RR

EN

T L

IAB

ILIT

IES

Paya

bles

2,78

871

1,41

493

931

625

1-

--

--

5,77

9O

ther

Lia

bilit

ies

119

--

1,51

5-

--

--

-1,

634

Prov

isio

ns3,

094

-2,

747

8,23

57

--

--

-14

,083

6,00

171

4,16

110

,689

323

251

--

--

-21

,496

NO

N-C

UR

RE

NT

LIA

BIL

ITIE

SPa

yabl

es a

nd In

tere

st-b

earin

g lia

bilit

ies

--

-73

1-

--

--

-73

1Pr

ovis

ions

--

--

--

--

--

--

--

731

--

--

--

-73

1T

otal

liab

ilitie

s6,

001

714,

161

11,4

2032

325

1-

--

--

22,2

27N

ET

ASS

ET

S39

,561

(53)

15,5

2633

,887

4,73

92,

545

--

--

-96

,205

Lan

d (1

)8,

315

-21

85,

489

609

7,06

11,

663

584

309,

103

14,7

9347

,865

1.Th

e to

tal o

f dev

elop

men

t cos

ts ($

24.1

80 m

illio

n) a

nd A

utho

rity

land

($47

.865

mill

ion)

repr

esen

ts th

e to

tal (

$72.

045

mill

ion)

join

t ven

ture

land

.

10�

Hou

sing

Aut

hori

ty 2

00

6-0

7 A

nn

ua

l R

ep

ort

© D

epar

tmen

t of H

ousin

g an

d W

orks

200

7

THE

HO

USI

NG

AU

THO

RIT

Y A

ND

CO

NTR

OLL

ED E

NTI

TIES

21.

Inve

ntor

ies (

Con

tinue

d)JO

INT

VE

NT

UR

E O

PER

AT

ION

S20

06B

utle

rB

right

onD

alye

llup

Elle

nbro

okSe

acre

stB

eelia

rC

lark

son

Palm

Woo

dris

eW

ella

rdTo

tal

Bea

chsi

deB

each

Bea

chEs

tate

Esta

te$0

00$0

00$0

00$0

00$0

00$0

00$0

00$0

00$0

00$0

00$0

00C

UR

RE

NT

ASS

ET

SC

ash

and

cash

equ

ival

ents

12,0

2041

15,

507

3,37

065

7-

--

-21

,965

Rec

eiva

bles

4,81

99

3,85

82,

527

288

--

--

11,5

01In

vent

orie

s10

,713

-3,

823

1,96

0-

--

--

16,4

96O

ther

cur

rent

ass

ets

702

-17

1,08

6-

--

--

1,80

528

,254

420

13,2

058,

943

945

--

--

51,7

67N

ON

-CU

RR

EN

T A

SSE

TS

Rec

eiva

bles

--

-1,

886

7-

1,89

3O

ffic

e Eq

uipm

ent

--

-96

--

--

-96

Bui

ldin

gs5,

935

-1,

027

456

--

--

-7,

418

Dev

elop

men

t cos

ts (1

)17

,352

-4,

588

26,6

031,

612

--

--

50,1

5523

,287

-5,

615

29,0

411,

619

--

--

59,5

62T

otal

ass

ets

51,5

4142

018

,820

37,9

842,

564

--

--

111,

329

CU

RR

EN

T L

IAB

ILIT

IES

Paya

bles

3,

601

102

1,60

11,

547

117

--

--

6,96

8O

ther

Lia

bilit

ies

119

--

--

--

--

119

Prov

isio

ns4,

622

-3,

002

3,63

827

--

--

11,2

898,

342

102

4,60

35,

185

144

--

--

18,3

76N

ON

-CU

RR

EN

T L

IAB

ILIT

IES

Paya

bles

and

Inte

rest

-bea

ring

liabi

litie

s-

--

938

--

--

-93

8Pr

ovis

ions

--

--

27-

--

-27

--

-93

827

--

--

965

Tot

al li

abili

ties

8,34

210

24,

603

6,12

317

1-

--

-19

,341

NE

T A

SSE

TS

43,1

9931

814

,217

31,8

612,

393

--

--

91,9

88

Lan

d (1

)10

,316

-29

45,

960

832

1,93

94,

105

-30

9,91

833

,394

1.Th

e to

tal o

f dev

elop

men

t cos

ts ($

50.1

55 m

illio

n) a

nd A

utho

rity

land

($33

.394

mill

ion)

repr

esen

ts th

e to

tal (

$83.

549

mill

ion)

join

t ven

ture

land

.





22. Receivables

CurrentGeneral 1,877 2,074 1,799 3,322Joint venture receivables 11,265 11,501 11,265 11,501Land debtors 14,251 17,743 14,251 17,743Lease bonds 2,418 - 2,418 -Other rents 197 550 197 550Rental bonds assistance 3,822 3,987 3,822 3,987Rents from tenants 12,913 10,893 12,913 10,893

46,743 46,748 46,665 47,996Less allowance for impairment 2,754 2,141 2,668 2,141Total receivables current 43,989 44,607 43,997 45,855

Non currentNon-current loans and advancesKeystart preferential shares (a & b) - - 1,240,000 1,610,000Loans to homebuyers 1,253,664 1,655,680 35 50,587Loans otherCommercial organisations (c) 177 538 177 538Local & statutory Authority's 19 22 19 22Less provision for impairment 742 1,482 - 35

1,253,118 1,654,758 231 51,112

Capitalised management rights 2,162 2,162 - -Less accumulated amortisation 1,623 1,082 - -

539 1,080 - -Joint venture receivables 1,890 1,893 1,890 1,893Total receivables non current 1,255,547 1,657,731 1,242,121 1,663,005

(a) Controlled entities and contribution to retained earnings. (Note 2 c & d)Contribution to Investment

Percentage Consolidated Entity SharesName Owned result ($000) at cost ($)

2007 2006 2007 2006 2007 2006

Keystart Bonds Ltd 100 100 Nil Nil 6 6Keystart Loans Ltd 100 100 Nil Nil 6 6Keystart Support Pty Ltd 100 100 Nil Nil 2 2Keystart Support (Subsidiary) Pty Ltd 100 100 Nil Nil 2 2Keystart Housing Scheme Trust

Profits - -Transfer from Reserve 66 77

Keystart Support Trust Nil NilHomeswest Loan Scheme Trust Nil Nil

(b) Keystart Preferential SharesThe Western Australian Treasury Corporation has provided the Authority with a $2,000 million loan facility tofund Keystart Loans Ltd. The Authority has purchased redeemable preference shares in Keystart Loans Ltd. to thesame value as the drawn down loan facility as security over the funds. The terms and conditions of the shares reflectthe terms and conditions of the loan facility. Keystart Loans Ltd. meets all principal, interest and other costs associatedwith the facility. To date $1,240 million (June 2006 $1,610 million) of this facility has been drawn down.

(c) The Authority has one interest free loan with a face value of $144,000 (original principal was $200,000 in 2001)which is carried at amortised cost with an effective interest rate of 5.34%. The carrying amount as at June 302007 is $91,722 (June 2006 $89,578).




23. Other current assets $000 $000 $000 $000Accrued revenueInterest on cash at bank 1,659 1,911 1,659 1,911Interest Keystart shares - - 11,159 13,270

1,659 1,911 12,818 15,181PrepaymentsInsurance premiums 43 28 43 28Interest on borrowings - 148 - -Lease rentals 2,965 - 2,965 -Joint venture 3,175 1,805 3,175 1,805

6,183 1,981 6,183 1,833Total other current assets 7,842 3,892 19,001 17,014

24. Derivatives

Interest rate swaps 2,300 1,988 - -

25. Non-current assets classified as held for sale

Opening BalanceRental properties 7,396 9,115 7,396 9,115

Assets reclassified as held for saleRental properties 47,362 52,624 47,362 52,624Less impairment 1,241 1,411 1,241 1,411

46,121 51,213 46,121 51,213Total assets classified as held for sale

Rental properties 53,517 60,328 53,517 60,328Less assets sold

Rental properties 45,133 52,932 45,133 52,932Closing balance

Rental properties 8,384 7,396 8,384 7,396

These properties are the Authority's New Living and Redevelopment programs properties that formpart of the rental property class that are marketed and available for immediate sale in accordance with AASB 5. Assetsheld for sale are held at fair value less selling costs.

26. Other financial assets

CurrentDeposits at call 150,000 150,000 - -Less fair value movement through profit or loss at end of year. 198 139 - -Total current other financial assets 149,802 149,861 - -

Non - current investmentsEllenbrook Management Pty Ltd Shares (a) 24 24 24 24Total non - current other financial assets 24 24 24 24

(a) Interest is held in the following company. Dividends Value of

Principal Type of Percentage of each received Shares atName Activities shares share class held ($000) cost ($000)

2007 2006% %

Ellenbrook Management Pty Ltd Real estate Ord. 47.14 47.14 Nil 24development





27. Rental properties $000 $000 $000 $000Rental properties at fair value

Improvements 3,595,457 2,353,034 3,595,457 2,353,034Land 4,605,252 2,511,271 4,605,252 2,511,271

8,200,709 4,864,305 8,200,709 4,864,305Less accumulated depreciation 2,487 47,260 2,487 47,260

8,198,222 4,817,045 8,198,222 4,817,045Leasehold improvements at cost 225 198 225 198Less accumulated depreciation 140 111 140 111

85 87 85 87Total rental properties 8,198,307 4,817,132 8,198,307 4,817,132

28. Community housing properties

Crisis accommodation properties at fair valueImprovements 49,847 41,868 49,847 41,868Land 77,481 38,681 77,481 38,681

127,328 80,549 127,328 80,549Community housing properties at fair value

Improvements 86,609 69,684 86,609 69,684Land 99,335 50,126 99,335 50,126

185,944 119,810 185,944 119,810Joint charity projects at fair value


116,793 90,869 116,793 90,869Indigenous urban housing at fair value


9,547 4,564 9,547 4,564439,612 295,792 439,612 295,792

Less accumulated depreciation:Crisis accommodation 58 804 58 804Community housing 110 1,338 110 1,338Joint charity projects 2,240 3,349 2,240 3,349Indigenous urban housing 45 48 45 48

2,453 5,539 2,453 5,539Total community housing properties 437,159 290,253 437,159 290,253

29. Shared equity properties

Shared Equity Properties at fair valueImprovements 77,409 59,650 77,409 59,650Land 129,444 66,128 129,444 66,128

206,853 125,778 206,853 125,778Less Accumulated Depreciation: 151 1,740 151 1,740Total shared equity properties 206,702 124,038 206,702 124,038




30. Other properties $000 $000 $000 $000

Other properties at fair valueOffices


29,882 21,380 29,882 21,380Commercial


4,881 3,105 4,881 3,105Joint venture buildings 2,447 7,687 2,447 7,687

37,210 32,172 37,210 32,172Less accumulated depreciation:Offices - 404 - 404Commercial - 21 - 21Joint venture buildings 338 269 338 269

338 694 338 69436,872 31,478 36,872 31,478

Leasehold improvements at cost 408 738 408 738Less accumulated depreciation: 259 619 259 619

149 119 149 119GROH vacant land at fair value 16,061 - 16,061 -Total other properties 53,082 31,597 53,082 31,597

31. Plant and equipment

Plant & equipment at costAir conditioning 1,205 954 1,205 954Commercial vehicles 368 459 368 459Computing facilities & equipment 12,814 11,646 11,748 10,582Furniture & fittings 627 660 483 516Office machines & equipment 2,258 1,901 2,066 1,709Joint venture office equipment 125 132 125 132Plant & equipment 120 121 120 121

17,517 15,873 16,115 14,473Less accumulated depreciation:Air conditioning 565 501 565 501Commercial vehicles 299 377 299 377Computing facilities & equipment 8,001 7,779 7,242 7,167Furniture & fittings 457 470 395 421Office machines & equipment 1,151 977 1,021 868Joint venture office equipment 44 36 44 36Plant & equipment 63 51 63 51

10,580 10,191 9,629 9,421Total plant and equipment 6,937 5,682 6,486 5,052




32. Property, plant and equipmement reconciliation

CONSOLIDATEDRental Community Shared Other Plant & Buildings Total

Properties Housing Equity Properties Equipment under Properties Properties Construction

$000 $000 $000 $000 $000 $000 $000Carrying amount at start of year 4,817,132 290,253 124,038 31,597 5,682 129,975 5,398,677Additions 425,752 17,377 18,640 12,306 3,366 163,021 640,462Transfers 143,668 1,853 190 2,287 - (147,998) -Disposals (54,719) - (12,314) (8,303) (1,736) - (77,072)Classified as held for sale (47,248) - - - - - (47,248)Revaluation increments (a) 2,973,820 131,745 78,051 15,369 - - 3,198,985Depreciation (60,098) (4,069) (1,903) (174) (375) - (66,619)Carrying amount at end of year 8,198,307 437,159 206,702 53,082 6,937 144,998 9,047,185

Depreciation includes adjustments on disposal of assets in addition to thedepreciation expense for the year.

THE HOUSING AUTHORITYRental Community Shared Other Plant & Buildings Total


$000 $000 $000 $000 $000 $000 $000Carrying amount at start of year 4,817,132 290,253 124,038 31,597 5,052 129,975 5,398,047Additions 425,752 17,377 18,640 12,306 3,364 163,021 640,460Transfers 143,668 1,853 190 2,287 - (147,998) -Disposals (54,719) - (12,314) (8,303) (1,736) - (77,072)Classified as held for sale (47,248) - - - - - (47,248)Revaluation increments (a) 2,973,820 131,745 78,051 15,369 - - 3,198,985Depreciation (60,098) (4,069) (1,903) (174) (194) - (66,438)Carrying amount at end of year 8,198,307 437,159 206,702 53,082 6,486 144,998 9,046,734

Depreciation includes adjustments on disposal of assets in addition to thedepreciation expense for the year.

(a) During the financial year ended June 2007 valuations supplied by the Western Australian Land Information Authority(Valuation Services) with an effective date 1 July 2005 and 1 July 2006 were applied for freehold land and buildings. Theapplication of the two valuations was undertaken to provide a more current position on property valuations at reportingdate. The fair value of all land and buildings has been determined by reference to recent market transactions.

To ensure the valuations provided by Valuation Services were compliant at 30 June 2007 with the fair valuerequirements under AASB 116, Valuation Services provided the Department of Treasury and Finance (DTF) withinformation that tracked the general movement in the market value of land and in building construction costs from the 1July 2006 (the date of valuation) to 31 March 2007. DTF reviewed the information and determined that the valuationsprovided by Valuation Services (as at 1 July 2006) were compliant with fair value requirements for 30 June 2007reporting without further adjustment.

2007

2007



32. Property, plant and equipmement reconciliation

CONSOLIDATEDRental Community Shared Other Plant & Buildings Total


$000 $000 $000 $000 $000 $000 $000Carrying amount at start of year 4,132,150 255,745 108,489 24,568 4,799 78,676 4,604,427Additions 58,560 12,776 10,615 6,171 2,394 148,896 239,412Transfers 86,526 9,541 310 1,220 - (97,597) -Disposals (87,902) (2,621) (16,910) (56) (1,879) - (109,368)Classified as held for sale (52,625) - - - - - (52,625)Revaluation increments 726,807 18,559 23,220 386 - - 768,972Depreciation (46,384) (3,747) (1,686) (692) 368 - (52,141)Carrying amount at end of year 4,817,132 290,253 124,038 31,597 5,682 129,975 5,398,677

Depreciation includes adjustments on disposal of assets in addition to thedereciation expense for the year.

THE HOUSING AUTHORITYRental Community Shared Other Plant & Buildings Total


$000 $000 $000 $000 $000 $000 $000Carrying amount at start of year 4,132,150 255,745 108,489 24,568 4,295 78,676 4,603,923Additions 58,560 12,776 10,615 6,171 2,095 148,896 239,113Transfers 86,526 9,541 310 1,220 - (97,597) -Disposals (87,902) (2,621) (16,910) (56) (1,879) - (109,368)Classified as held for sale (52,625) - - - - - (52,625)Revaluation increments 726,807 18,559 23,220 386 - - 768,972Depreciation (46,384) (3,747) (1,686) (692) 541 - (51,968)Carrying amount at end of year 4,817,132 290,253 124,038 31,597 5,052 129,975 5,398,047

Depreciation includes adjustments on disposal of assets in addition to thedereciation expense for the year.

2006

2006





33. Intangible assets $000 $000 $000 $000

Computing software at cost 8,538 7,840 4,567 4,001Less accumulated amortisation 6,611 5,881 3,101 2,735

1,927 1,959 1,466 1,266Computing development at cost 10,388 10,176 10,388 10,176Less accumulated amortisation 9,543 9,377 9,543 9,377

845 799 845 799Total intangible assets 2,772 2,758 2,311 2,065

Intangible assets reconciliationCarrying amount at start of year 2,758 2,908 2,065 1,624Additions 998 888 867 799Disposals 89 - 89 -Amortisation expense (895) (1,038) (532) (358)Carrying amount at end of year 2,772 2,758 2,311 2,065

34. Other non-current assets

Other assets at costCapital establishment & development costs and premiums on financial instruments 1,958 2,387 - -Less accumulated amortisation 1,077 1,624 - -

881 763 - -Loan broker fees 14,027 12,460 - -Less accumulated amortisation 10,704 6,961 - -

3,323 5,499 - -Total other non-current assets 4,204 6,262 - -

35. Payables

CurrentContractors retention monies 5,552 4,649 5,552 4,649Joint venture creditors 5,779 6,968 5,779 6,968Keystart - - - 10,000Rental properties water consumption 1,387 1,041 1,387 1,041Rental tenants bonds 11,214 10,324 11,214 10,324Social housing trust 5,614 5,142 5,614 5,142Trade creditors 19,675 9,980 19,677 9,980Total current payables 49,221 38,104 49,223 48,104

Included in the trade creditors line are the unspent funds associated with the Indian Ocean Territories (IOT)service delivery arrangements as per the following:

2007 2006$ $

Amounts carried forward from previous financial year. 1,218,714 1,869,475Payments made by the Commonwealth for IOT services. 294,347 198,500Cost of services. 114,571 89,036Construction paid 599,688 760,225Amounts carried forward to following financial year. 798,802 1,218,714

Non - currentJoint venture creditors 731 938 731 938Total non-current payables 731 938 731 938

36. Borrowings

CurrentBorrowingsState nominated funds 4,022 3,849 4,022 3,849WA Treasury Corporation 17,432 8,780 17,432 8,780Commonwealth advances 8,881 8,795 8,881 8,795Total current borrowings 30,335 21,424 30,335 21,424




36. Borrowings (continued) $000 $000 $000 $000

Non - currentBorrowingsState nominated funds 275,263 279,285 275,263 279,285WA treasury corporation 1,576,704 1,820,992 1,576,704 1,820,992Commonwealth advances 230,944 239,825 230,944 239,825Total non-current borrowings 2,082,911 2,340,102 2,082,911 2,340,102Total borrowings 2,113,246 2,361,526 2,113,246 2,361,526

37. Provisions

CurrentEmployee benefitsLong service leave 5,398 4,672 5,398 4,672Annual leave 4,806 4,578 4,806 4,578

10,204 9,250 10,204 9,250OtherEmployee benefits on-costs 584 489 584 489Joint venture provisions 14,083 11,289 14,083 11,289Total current provisions 24,871 21,028 24,871 21,028

Non - CurrentEmployee benefitsLong service leave 3,345 3,594 3,345 3,594Superannuation 32,510 31,940 32,510 31,940

35,855 35,534 35,855 35,534OtherEmployment on-costs 168 196 168 196Development levies (note 2t(ii)) 3,008 886 3,008 886Joint venture provisions - 27 - 27Total non-current provisions 39,031 36,643 39,031 36,643

Long service leave liabilities have been established by actuarial assessment dated 27 July 2007. Theassessment of the non-current portion of the liability is at net present value allowing for a salary inflation rateof 3.5% and a investment earning rate (discount) of 6.42%.

The settlement of annual and long service leave liabilities gives rise to the payment of employment on-costs includingworkers’ compensation premiums and payroll tax. The provision is measured at the present value of expected futurepayments. The associated expense, apart from the unwinding of the discount (finance cost), is included at note 19‘Other expenses’.

The superannuation liability has been established from data supplied by the Government EmployeesSuperannuation Board.

`Movement in ProvisionsEmployment on-costs 752 685 752 685

Carrying amount at start of year 685 606 685 606Additional provisions recognised 3,182 2,607 3,182 2,607Payments (3,115) (2,528) (3,115) (2,528)Carrying amount at end of year 752 685 752 685

Development levies 3,008 886 3,008 886Carrying amount at start of year 886 784 886 784Additional provisions recognised 2,861 988 2,861 988Payments (739) (886) (739) (886)Carrying amount at end of year 3,008 886 3,008 886

Joint venture provisions 14,083 11,316 14,083 11,316Carrying amount at start of year 11,316 9,695 11,316 9,695Additional provisions recognised 13,555 10,469 13,555 10,469Payments (10,788) (8,848) (10,788) (8,848)Carrying amount at end of year 14,083 11,316 14,083 11,316




37. Provisions (Continued)

Defined benefit superannuation plans

The amounts recognised in the income statement are as follows:

2007 2006 2007 2006$000 $000 $000 $000

Current service cost - - - -Interest cost 1,286 1,206 515 626Net actuarial losses/(gains) recognised 2,065 482 (579) (526)Total included in Employee benefits expense 3,351 1,688 (64) 100

The amounts recognised in the balance sheet are as follows:

Present value of unfunded obligations 24,216 23,285 8,294 8,655Liability in the balance sheet 24,216 23,285 8,294 8,655

The Authority has no legal liability to make up the liability other than by continuing to comply with the employerfunding arrangements as detailed below.

Reconciliation of the unfunded liability recognised in the balance sheet is as follows:

2007 2006 2007 2006$000 $000 $000 $000

Liability at the start of the year 23,285 23,949 8,655 9,037Current service cost - - - -Interest cost ( unwinding of the discount) 1,286 1,206 515 626Net actuarial losses/(gains) recognised 2,065 482 (579) (526)Benefits paid (2,420) (2,352) (297) (482)Liability at the end of the year 24,216 23,285 8,294 8,655

Reconciliation of the fair value of plan assets is as follows:

Fair value of plan assets at the start of the year - - - -Employer contributions 2,420 2,352 297 482Benefits paid 2,420 2,352 297 482Fair value of plan assets at the end of the year - - - -

The principal actuarial assumptions used (expressed as weighted averages) were as follows:2007 2006

Discount rate 6.06% 5.81%Future salary increases 4.50% 4.50%Future pension increases 2.50% 2.50%

Historic summary

Pension scheme:Present value of unfunded obligation 24,216 23,285Fair value of plan assets - -Deficit 24,216 23,285

Pre-transfer benefit - Gold State superannuation Scheme:Present value of unfunded obligation 8,294 8,655Fair value of plan assets - -Deficit 8,294 8,655

Experience adjustments arising on plan liabilities:Pension scheme 563 1,303Pre-transfer benefit - Gold State superannuation Scheme 94 (254)

Pre-transfer benefit -

Pension Scheme

Pre-transfer benefit -Gold State

Superannuation

Gold StateSuperannuation

SchemePension Scheme

Scheme



37. Provisions (Continued)

Employer funding arrangements for the defined benefit plans

Details of the deficit of the defined benefit plans measured in accordance with AAS 25 Financial Reporting bySuperannuation Plans as determined from the plans’ most recent financial report:

2007 2006 2007 2006$000 $000 $000 $000

Gross accrued benefits - 2,446,577 - 4,566,281Net market value of plan assets - 129,848 - 2,228,181Deficit - 2,316,729 - 2,338,100

(a) The amounts recorded for the Gold State Superannuation Scheme relate to the scheme as a whole (i.e. thepre-transfer benefit component plus the concurrently funded benefit component).

The funding policy adopted by the Government in respect of the defined benefit plans is directed at ensuring thatbenefits accruing to members and beneficiaries are fully funded at the time the benefits become payable. As such,the Schemes’ actuary has considered long-term trends in such factors as scheme membership, salary growth andaverage market value of the schemes’ assets when advising the Government on employer and employeecontribution rates. The employer funding arrangements for the defined benefit plans under the Superannuation andFamily Benefits Act 1938 (Pension Scheme) and the Government Employees Superannuation Act 1987 (GoldState Superannuation Scheme) are summarised as follows:

Pension Scheme

The Pension Scheme is a unit-based scheme. The level of pension payable is determined by the number of unitspurchased, the length of service and the final salary of the member. The employer liability is funded only on theemergence of a member’s pension benefit entitlement and is recouped by the Government EmployeesSuperannuation Board fortnightly following the payment of each pension.

Employer contributions of $2,539,000 are expected to be paid to the Pension Scheme for the year ending 30 June2008.

Gold State Superannuation Scheme

The Gold State Superannuation Scheme is a lump sum scheme. The Authority is required under the StateSuperannuation Regulations 2001 to make concurrent employer contributions direct to the Scheme in respect ofcontributory members who are the Authority’s employees.

The employer contribution rate for 2006/07 for contributory members was 12% (2005/06: 12%) of a member’ssalary, based on a 5% member contribution. The employer contribution rate is proportionately less or more wheremembers elect a contribution rate of 3%, 4%, 6% or 7% of salary.

In respect of those members who transferred their membership from the Pension Scheme, the employer liability inrelation to service or period of employment constituted as service for the purposes of the Superannuation andFamily Benefits Act 1938, is calculated at a rate of 12% of final average salary for each year of such service, basedupon a 5% member’s average contribution rate to the scheme (this rate is proportionately less where a member’saverage contribution rate is less than 5%). This employer liability becomes payable on the payment of the benefitto the member.

Employer contributions of $716,000 are expected to be paid to the Gold State Superannuation Scheme for theyear ending 30 June 2008.

Scheme (a)Pension Scheme

Pre-transfer benefit -Gold State

Superannuation





38. Other liabilities $000 $000 $000 $000

CurrentAccrued expenses:Administrative & general expenses 4,392 5,203 2,971 3,255Interest on borrowings 16,588 16,997 16,588 16,997

20,980 22,200 19,559 20,252Joint venture liabilities 1,634 119 1,634 119Unearned income 7,110 6,821 7,110 6,821Total current other liabilities 29,724 29,140 28,303 27,192

Non - currentAccrued expenses 478 - 478 -Total Non-current other liabilities 478 - 478 -

39. Contributed equity

Opening balance 85,765 70,765 85,765 70,765Capital contributions 15,000 15,000 15,000 15,000Other contributions by owner(a) 239,136 - 239,136 -Closing balance 339,901 85,765 339,901 85,765

(a) The Housing Authority absorbed the operations of the Government Employees Housing Authority effective 1st July 2006.

40. Reserves

(i) Asset Revaluation ReserveBalance brought forward from prior year 2,969,759 2,328,473 2,969,759 2,328,473Transferred to retained earnings (95,017) (137,606) (95,017) (137,606)Revaluations during the year 3,213,788 778,892 3,213,788 778,892Closing balance 6,088,530 2,969,759 6,088,530 2,969,759

Revaluations recognised during the year were in respect of:Rental properties - current 2,973,820 726,807 2,973,820 726,807Community housing properties - current 131,745 18,559 131,745 18,559Shared equity properties - current 78,051 23,220 78,051 23,220Other properties - current 15,368 386 15,368 386Land transferred to rental properties 14,804 9,920 14,804 9,920

3,213,788 778,892 3,213,788 778,892Transferred to retained earnings

Value of rental properties - sold (18,811) (24,214) (18,811) (24,214)Value of rental properties - demolished (26,921) (53,183) (26,921) (53,183)Value of properties held for sale - sold (42,955) (51,520) (42,955) (51,520)Value of community housing properties - sold - (562) - (562)Value of shared equity properties - sold (6,330) (8,127) (6,330) (8,127)Value of other properties - sold - - - -

(95,017) (137,606) (95,017) (137,606)

The asset revaluation reserve is used to record increments and decrements on the revaluation of non-current assets, as describedin accounting policy note 2(f).

(ii) Interest Assistance Lowstart ReserveBalance brought forward from prior year 965 1,042 - -Transfer to retained profits (66) (77) - -Closing balance 899 965 - -

The reserve was established to fund the forgone interest portion of reconstructed Keystart Lowstart home loans.

(iii) Hedging ReserveBalance brought forward from prior year 494 - - -Transfer from income statement 1,809 494 - -Closing balance 2,303 494 - -Total Reserves 6,091,732 2,971,218 6,088,530 2,969,759




41. Retained earnings

Opening balance 2,300,275 2,118,846 2,136,508 1,972,332Net adjustment on transition to AIFRS - 17,191 - (62)Transfer from asset revaluation reserve upon disposal 95,017 137,606 95,017 137,606Transfer from interest assistance lowstart reserve 66 77 - -Net profit for the year 57,744 26,555 57,810 26,632Total retained earnings 2,453,102 2,300,275 2,289,335 2,136,508

42. Reconciliation of cash flows fromoperations with profit for the period

Net Profit 57,744 26,555 57,810 26,632Non - cash items:Depreciation & amortisation expense 74,380 60,481 68,959 54,327Doubtful debts expense 3,060 (13,455) 3,679 (2,015)(Profit)/loss on disposal of non-current assets (6,322) 192 (6,750) (301)Cash items:Grants & subsidies and from government (32,578) (36,473) (32,578) (36,473)(Increase)/decrease in assets:Receivables 52,251 6,531 52,564 8,820Inventories (105,329) (50,622) (105,329) (50,622)Other assets (13,585) (6,728) 2,029 (5,729)Increase/(decrease) in liabilities:Provisions 474 1,719 474 1,719Net adjustment on transition to AIFRS - 17,747 - -Premiums on financial instruments (2,284) (9,284) - -Payables (16,391) 13,338 (14,817) 7,454Net GST payments (23,957) (12,214) (23,957) (12,214)Net cash flows (used in) provided by operating activities (12,537) (2,213) 2,084 (8,402)

43. Purchase of non-current physical assets

Buildings under construction 156,078 146,900 156,078 146,900Computing facilities & equipment 3,282 2,521 3,108 2,044Furniture & fittings 27 12 27 12Commercial vehicles - 83 - 83Offices - - - -Office machines & equipment 529 664 529 664Properties 92,131 31,465 92,131 31,465Total purchase of non-current physical assets 252,047 181,645 251,873 181,168

44. Reconciliation of cash

For the purposes of this statement of cash flows cash includes cash at bank and in interest bearing depositswith Banks.

Cash at the end of the year is shown in the Balance Sheet as:

Cash at bank - operational 55,878 99,810 46,967 82,426Cash at bank - superannuation 20,700 20,700 20,700 20,700Deposits at call 149,802 149,861 - -Rental tenants bonds 11,214 10,324 11,214 10,324

237,594 280,695 78,881 113,450




Parent2007 2006

45. Remuneration of accountable authority and senior officers $000 $000

Remuneration of Members of the Accountable Authority

The total fees, salaries, superannuation, non-monetary benefits and other benefitsreceived or due and receivable for the financial year, by members of the AccountableAuthority, from the Authority and the controlled entity. 271 477

The number of members of the Accountable Authority whose total of fees, salaries,superannuation, non-monetary benefits and other benefits received or due and receivablefor the financial year, falls within the following bands:

2007 2006$10,001 - $20,000 - 1$20,001 - $30,000 - 2$40,001 - $50,000 - 1$70,001 - $80,000 - 1$80,001 - $90,000 - 2$130,001 - $140,000 - 1$270,001 - $280,000 1 -

1 7

The superannuation included here represents the superannuation expense incurred by the Authority in respect of members of the Accountable Authority.There are no members of the Accountable Authority who are currently members of the Pension Scheme.

Remuneration of Senior Officers

The total of fees, salaries, superannuation, non-monetary benefits and other benefits received or due andreceivable for the financial year, by Senior Officers other than members of the Accountable Authority,from the Authority and the controlled entity. 858 922

The number of Senior Officers other than members of the Accountable Authority, whose total of fees,salaries, superannuation, non-monetary benefits and other benefits received or due and receivable for thefinancial year falls within the following bands:

2007 2006$80,001 - $90,000 1 -$110,001 - $120,000 - 1$120,001 - $130,000 1 1$130,001 - $140,000 - 3$140,001 - $150,000 2 2$150,001 - $160,000 1 -$200,001 - $210,000 1 -

6 7

The superannuation included here represents the superannuation expense incurred by the Authority in respect of Senior Officers other than senior officers reported as members of the Accountable Authority.There are no Senior Officers Presently employed who are currently members of the Pension Scheme.

Consolidated Parent46. Remuneration of auditor 2007 2006 2007 2006

$000 $000 $000 $000The total fees paid or due and payable to the Auditor General for thefinancial year is as follows:

Fees for the Auditor General for auditing the Financial Statements and 328 371 240 266Performance IndicatorsFees for the Auditor General for Commonwealth reporting 6 6 6 6

334 377 246 272




47. Commitments for expenditure

At June 30 2007 the expenditure commitments are as follows:

(a) Capital expenditure commitmentsWithin 1 year 203,100 160,785 203,100 160,785Later than 1 year & not later than 5 years - 961 - 961

203,100 161,746 203,100 161,746The capital commitments include amounts for the following:Dwelling construction & upgrades 167,585 137,179 167,585 137,179Land development and redevelopment 2,182 3,957 2,182 3,957Crisis accommodation program 148 728 148 728Joint venture land development 30,943 16,463 30,943 16,463New living 49 1,098 49 1,098Local government & community housing programs 2,193 2,321 2,193 2,321

203,100 161,746 203,100 161,746(b) Other expenditure commitmentsWithin 1 year 52,782 68,918 - 2,180

52,782 68,918 - 2,180The other expenditure commitments include amounts for the following:Loans to Home Buyers 52,782 68,819 - 2,180

52,782 68,819 - 2,180

Expenditure commitments have increased by $25.317m, from the previous year. The increase in commitments fordwelling construction relates primarily to construction in remote villages, projects were brought forward to achievehigher competition rates and to moderate the effect of increasing construction costs. The consolidated of GovernmentRegional Officers Housing ($16.290m) into the Housing Authority accounts has also increased expenditurecommitments.

Joint Venture development expenditure commitment has increased as projects are still progressing robustly in Butler,Ellenbrook, Wandina and Dalyellup.

Commited carryover for Land development has declined from the previuos year as projects have progressed with thecompletition of some stages at Glen Iris, Forrest Estate and Albany. The committed carryover primarily relates to afurther Glen Iris stage and Madeley land developments.

The reduction in carryover expenditure for Loans to Homebuyers is mainly due to the decline in loan applications asproperty prices at remained at high levels during 2006/2007. This has adversely effected lower to middle incomeearners ability to purchase a property. There is also more industry options for low deposit middle income earners toattain housing loans as the private industry seeks to expand its customer share.

(c) Lease commitments

Commitments in relation to leases contracted for at the balance sheet date but not recognised in the financialstatements as liabilities are payable as follows:

Rental property leases:Lease commitments on non cancellable operating leases are:Within 1 year 9,071 - 9,071 -Later than 1 year & not later than 5 years 24,979 - 24,979 -

34,050 - 34,050 -Motor vehicle leases:Lease commitments on non cancellable operating leases are:Within 1 year 954 743 954 743Later than 1 year & not later than 5 years 387 258 387 258

1,341 1,001 1,341 1,001Office property leases:Lease commitments on non cancellable operating leases are:Within 1 year 547 666 525 644Later than 1 year & not later than 5 years 1,170 1,181 1,157 1,159

1,717 1,847 1,682 1,803




48. Contingent liabilities

Under the Contaminated Sites Act 2003, the Authority is required to report known and suspected contaminated sites to theDepartment of Environment and Conservation (DEC). In accordance with the Act, DEC classifies these sites on the basis ofthe risk to human health, the environment and environmental values. Where sites are classified as contaminated –remediation required or possibly contaminated – investigation required, the Authority may have a liability in respect ofinvestigation or remediation expenses.

During the year the Authority reported three suspected contaminated sites to DEC. These have yet to be classified. TheAuthority is unable to assess the likely outcome of the classification process, and accordingly, it is not practicable toestimate the potential financial effect or to identify the uncertainties relating to the amount or timing of any outflows.Whilst there is no possibility of reimbursement of any future expenses that may be incurred in the remediation of thesesites, the Authority may apply for funding from the Contaminated Sites Management Account to undertake furtherinvestigative work or to meet remediation costs that may be required.

Litigation in progress

The Authority has been joined in legal actions involving asbestos related illness. The estimated value of theseclaims against the Authority is $550,000, liability is being denied and any legal claim will be defended.

49. Losses to the Authority through thefts, defaults or other causes:

The Authority, for the year ended 30 June 2007, incurred Cashiers Shortages totalling $101(June 2006 $221) all of which have been funded by the Authority.Reportable thefts in 2006/2007 totalled $1,745 (June 2006 $4,391) $1,745 of which is recoverable.Bad Debts written off by the Accountable Authority in the year ended 30 June 2007 totalled $3,235,764 (June 2006 $2,759,172).Bad Debts recovered totalled $550,443 (June 2006 $595,764).

50. Gifts of public property

In the year ended 30 June 2007 the Authority did not make any gifts of public property.



51. Financial instruments

51(a) Financial Risk Management Objectives and Policies

Financial instruments held by the Authority are cash and cash equivalents, term deposits, loans, borrowings, interest ratecaps and receivables and payables. The Authority has limited exposure to financial risks. The Authority’s overall riskmanagement program focuses on managing the risks identified below.

Credit Risk Exposure

The Consolidated Entity's maximum exposures to credit risk at reporting date in relation to each class of recognised financialasset is the carrying amount of those assets as indicated in the balance sheet. In relation to derivative financial instruments,whether recognised or unrecognised, credit risk arises from the potential failure of counterparties to meet their obligationsunder the contract or arrangement. The Consolidated Entity's maximum credit risk exposure in relation to these is as follows:

(i) interest rate caps and collars - which is limited to the net fair value of the cap agreement at reporting date, being$2,300,342.

Concentration of Credit Risk

The Consolidated Entity's credit risk is spread over a significant number of parties and is concentrated only to the extent ofgeographic location, being that of urban and rural locations within Western Australia. The Consolidated Entity is thereforenot materially exposed to any particular individual party or group of parties.

The Consolidated Entity minimises concentrations of credit risk in relation to loans and advances by undertaking transactionswith a number of borrowers, within specified maximum limits based upon the assessment of each borrowers ability to servicea mortgage. The Consolidated Entity concentrates 100% of its lending to the purchase of residential real estate withinWestern Australia. Security is provided to the entity through a mortgage over the property.

Liquidity riskThe Entity has appropriate procedures to monitor its cash flows to ensure that sufficient funds are available to meet itscommitments.

Interest rate riskThe Consolidated Entity’s exposure to interest rate risks and the effective interest rates of financial assets and financialliabilities, both recognised and unrecognised at the balance sheet reporting date, are as follows: The Entity’s exposure tomarket risk for changes in interest rates relate primarily to the longterm debt obligations. The entity’s borrowings obtainedthrough the Western Australian Treasury Corporation (WATC) and are at fixed rates with varying maturities. The risk ismanaged by WATC through portfolio diversification and variation in maturity dates. The entity also has borrowings obtainedthrough the Commonwealth Government and are at fixed rates with varying maturities.

The consolidated entity's accounting policies, including the terms and conditions of each class of financial asset, financial liabilityand equity instrument, both recognised and unrecognised at the balance date, are as follows:

Recognised Financial Instruments Accounting Policies Terms and Conditions

(i) Financial assets

Cash and cash equivalents Cash at bank is held at nominal amounts. Cash is held at various banks and is interestbearing, with an effective interesr rate of6.02%. Interest is accrued when earned.

Short term deposits Short Term Deposits are stated at fair value. Short Term Deposits are held on 11am CallChanges in fair values are taken to the income Accounts, $NIL (2006: $NIL), with anstatement. effective interest rate of 6.00% (2006: 5.40%)

and Bank Bills, $149.802 million (2006:$149.861 million) with an effective interest rateof 6.37% (2005: 5.84%).

Receivables - general General receivables are carried at nominal Amounts due are generally on 30 dayamounts due less any provision for payment terms.impairment




51(a) Financial Risk Management Objectives and Policies (continued)


(i) Financial assets (continued)

Receivables - land debtors Land Debtors are carried at nominal amounts. Land sales are on 30 day terms once theSales and receivables are recognised once sale has become unconditional.the debtor has obtained financing and thesale has become unconditional.

Receivables - rent from tenants and Tenant and other rent receivables are carried Rent receivables are due weekly in advance. other rents at nominal amounts due less any provision

for impairment.

Receivables - rental bonds assistance Rental bond assistance receivables are Rental bond assistance receivables representcarried at nominal amounts due less any advances made to qualifying persons for theprovision for impairment. purpose of renting properties external to the

Authority. Each advance is repayable inminimum fortnightly payments of $15 withany remaining balance being collectible

Receivables - Loans - homebuyers Loans and advances are measured at amortised Loans and advances are secured by acost and stated net of provisions for registered mortgage over residentialimpairments. Transaction costs are included properties within Western Australia, with ain the measurement of all loans and advances. variable interest rate of 7.99% (2006 7.23%).

Receivables - Loans - other Loans are carried at amortised cost less any Loan repayment dates vary for each loan, one - commercial organisations provision for impairment. Interest is being due in 2008 and others with no set date.

recognised as revenue when earned. Interest rates are based on the 30 day bankbill swap reference rate less 2%. Interest isdue annually in accordance with the terms ofthe loan.

Receivables - Loans - local and Loans are carried at amortised cost less any Loan agreement exisits with Horizon Power atstatutory Authority's provision for impairment. Interest is a nil interest rate maturing in 2023.

recognised as revenue when earned.

(ii) Financial liabilitiesBorrowings - State nominated funds All loans are initially recognised at cost, being Borrowings are repayable on an annual basis

the fair value of the net proceeds received. with final instalments being due between JuneSubsequent measurement is at amortised cost 2036 and June 2042. Interest rates are set atusing the effective interest rate method. 4.5%.Interest is charged as an expense as it accrues.

Borrowings - WATC All loans are initially recognised at cost, being Variable rate borrowings are repayable on athe fair value of the net proceeds received. quarterly basis with the final instalmentSubsequent measurement is at amortised cost being due July 2026. Fixed rate borrowingsusing the effective interest rate method. are subject to interest payments only withInterest is charged as an expense as it accrues. the full loan being due on maturity. Interest

rates are fixed at varying rates between5.53% and 7.21%.

Borrowings - Commonwealth advances All loans are initially recognised at cost, being Borrowings are repayable on an annualthe fair value of the net proceeds received. basis with final instalments being dueSubsequent measurement is at amortised cost between June 2006 and June 2041. Interestusing the effective interest rate method. rates are fixed at rates between 3% and 6%.Interest is charged as an expense as it accrues.

Creditors - general Amounts primarily relate to land sale Land sales generally become unconditionaldeposits recognised upon receipt of cash within 30 days of offer. Retention moniesand retention monies for construction are repaid upon 100% completion withcontracts. 2.5% withheld until satisfactory completion

of the maintenance agreement.



51(a) Financial Risk Management Objectives and Policies (continued)


(ii) Financial liabilities (continued)

Creditors - rental deposits and rental Liabilities are recognised when tenant bonds Tenant bonds are payable upon the tenanttenants bonds are received or receivable. vacating the premises. The ultimate

amount to be paid is dependent upon thecondition of the property upon the tenantvacating, but is not more than the carryingamount of the liability.

Creditors - rental properties water Liabilities are recognised for amounts to be Liabilities are normally settled on 90 dayconsumption paid in the future for water usage. terms.

(iii) Derivatives

Interest Rate Caps The consolidated entity enters into interest At reporting date, the consolidated entityrate cap agreements that are used to protect had thirty nine interest rate caps with theagainst increases in interest rates. following notional amount, cap rate, and

maturity dates.1) $5 million, 6.25%, 19/07/20072) $5 million, 6.25%, 19/07/20073) $5 million, 6.25%, 19/07/20074) $50 million, 6.25%, 19/08/20075) $50 million, 5.95%, 15/09/20076) $50 million, 5.75%, 15/09/20077) $5 million, 6.25%, 19/11/20078) $5 million, 6.25%, 19/11/20079) $50 million, 5.75%, 13/12/2007

10) $1 million, 6.25%, 19/02/200811) $5 million, 6.25%, 19/02/200812) $1 million, 6.25%, 19/02/200813) $100 million, 5.75%, 8/03/200814) $5 million, 6.25%, 19/03/200815) $1 million, 6.50%, 30/06/200816) $1 million, 6.50%, 19/07/200817) $1 million, 6.50%, 19/08/200818) $50 million, 6.25%, 15/09/200819) $1 million, 6.50%, 14/10/200820) $1 million, 6.50%, 14/10/200821) $50 million, 6.25%, 15/08/200822) $50 million, 6.25%, 20/10/200823) $1 million, 6.50%, 16/11/200824) $1 million, 6.50%, 7/12/200825) $2 million, 6.50%, 15/01/200926) $1 million, 6.50%, 25/10/200927) $1 million, 6.50%, 08/02/200928) $1 million, 6.50%, 15/03/200929) $50 million, 6.50%, 03/04/200930) $50 million, 6.50%, 24/04/200931) $1 million, 6.50%, 03/05/200932) $1 million, 6.50%, 10/05/200933) $1 million, 6.75%, 10/05/200934) $1 million, 6.75%, 24/05/200935) $2 million, 6.75%, 28/07/200936) $2 million, 7.00%, 18/08/200937) $5 million, 7.00%, 30/08/200938) $3 million, 7.25%, 28/11/200939) $1 million, 7.25%, 12/06/2010

122

Hou

sing

Aut

hori

ty 2

00

6-0

7 A

nn

ua

l R

ep

ort

© D

epar

tmen

t of H

ousin

g an

d W

orks

200

7

THE

HO

USI

NG

AU

THO

RIT

Y A

ND

CO

NTR

OLL

ED E

NTI

TIES

51(b

). In

tere

st R

ate

Ris

k

Fixe

d In

tere

st R

ate

Mat

urity

Fina

ncia

l Ins

trum

ents

Wei

ghte

dV

aria

ble

With

in1

- 22

- 33

- 44

- 5M

ore

Non

-To

tal

Ave

rage

inte

rest

1

year

year

sye

ars

year

sye

ars

than

5In

tere

stca

rryi

ngef

fect

ive

Rat

eye

ars

Bea

ring

amou

nt a

sin

tere

stpe

r Bal

ance

rate

shee

t20

07%

$000

$000

$000

$000

$000

$000

$000

$000

$000

(i) F

inan

cial

Ass

ets

Cas

h an

d ca

sh e

quiv

alen

ts6.

02%

110,

978

--

--

--

-11

0,97

8Sh

ort t

erm

dep

osits

6.37

%14

9,80

2-

--

--

--

149,

802

Rec

eiva

bles

- ge

nera

l*

--

--

--

-4,

069

4,06

9 -

land

deb

tors

*-

--

--

--

27,4

0627

,406

- re

nt fr

om te

nant

s and

oth

er*

--

--

--

-11

,032

11,0

32 -

rent

al b

onds

ass

ista

nce

*-

--

--

--

3,37

23,

372

- lo

ans t

o ho

meb

uyer

s7.

74%

1,25

1,01

31,

909

1,25

2,92

2 -

loan

s to

com

mer

cial

org

anis

atio

ns*

--

--

--

177

177

- lo

ans t

o lo

cal a

nd st

atut

ory

parti

es*

--

--

--

-19

19In

tere

st R

ate

Cap

s *

**

556,

000

--

--

--

-2,

300

Tota

l fin

anci

al a

sset

s2,

067,

793

--

--

--

47,9

841,

562,

077

(ii) F

inan

cial

Lia

bilit

ies

Bor

row

ings

- St

ate

nom

inat

ed

4.53

%-

4,02

24,

203

4,39

24,

590

4,79

625

7,28

2-

279,

285

- W

ATC

4.63

%-

520,

751

330,

845

380,

845

126,

863

25,3

8520

9,44

7-

1,59

4,13

6 -

Com

mon

wea

lth a

dvan

ces

4.50

%-

8,88

18,

995

9,00

49,

127

9,24

819

4,57

0-

239,

825

Paya

bles

- gen

eral

*-

--

--

--

37,3

5137

,351

- ren

tal d

epos

its a

nd te

nant

bon

ds6.

02%

11,2

14-

--

--

--

11,2

14- r

enta

l pro

perty

wat

er c

onsu

mpt

ion

*-

--

--

--

1,38

71,

387

Tota

l fin

anci

al li

abili

ties

11,2

1453

3,65

434

4,04

339

4,24

114

0,58

039

,429

661,

299

38,7

382,

163,

198

*

not

app

licab

le fo

r non

-inte

rest

bea

ring

finan

cial

inst

rum

ents

.**

T

he $

556

mill

ion

repr

esen

ts th

e va

lue

of th

e bo

rrow

ings

por

tfolio

cov

ered

by

inte

rest

rate

cap

s.

12�

Hou

sing

Aut

hori

ty 2

00

6-0

7 A

nn

ua

l R

ep

ort

© D

epar

tmen

t of H

ousin

g an

d W

orks

200

7

THE

HO

USI

NG

AU

THO

RIT

Y A

ND

CO

NTR

OLL

ED E

NTI

TIES

51(b

). In

tere

st R

ate

Ris

k (c

ontin

ued)

Fixe

d In

tere

st R

ate

Mat

urity

Fina

ncia

l Ins

trum

ents

Wei

ghte

dV

aria

ble

With

in1

- 22

- 33

- 44

- 5M

ore

Non

-To

tal

Ave

rage

inte

rest

1

year

year

sye

ars

year

sye

ars

than

5In

tere

stca

rryi

ngef

fect

ive

Rat

eye

ars

Bea

ring

amou

nt a

sin

tere

stpe

r Bal

ance

rate

shee

t20

06%

$000

$000

$000

$000

$000

$000

$000

$000

$000

(i) F

inan

cial

Ass

ets

Cas

h an

d ca

sh e

quiv

alen

ts5.

48%

152,

819

--

--

--

-15

2,81

9Sh

ort t

erm

dep

osits

5.64

%14

9,86

1-

--

--

--

149,

861

Rec

eiva

bles

- ge

nera

l*

--

--

--

-1,

990

1,99

0 -

land

deb

tors

*-

--

--

--

31,1

3731

,137

- re

nt fr

om te

nant

s and

oth

er*

--

--

--

-9,

610

9,61

0 -

rent

al b

onds

ass

ista

nce

*-

--

--

--

3,76

43,

764

- lo

ans t

o ho

meb

uyer

s7.

23%

1,64

8,05

119

314

911

588

6822

75,

307

1,65

4,19

8 -

loan

s to

com

mer

cial

org

anis

atio

ns3.

62%

-33

9-

--

--

199

538

- lo

ans t

o lo

cal a

nd st

atut

ory

parti

es*

--

--

--

-22

22In

tere

st R

ate

Cap

s *

**

808,

000

--

--

--

-1,

988

Tota

l fin

anci

al a

sset

s2,

758,

731

532

149

115

8868

227

52,0

292,

005,

927

(ii) F

inan

cial

Lia

bilit

ies

Bor

row

ings

- St

ate

nom

inat

ed

4.53

%-

3,84

94,

022

4,20

34,

391

4,59

026

2,07

9-

283,

134

- W

ATC

4.08

%-

846,

127

270,

194

170,

194

370,

194

17,2

3015

5,83

3-

1,82

9,77

2 -

Com

mon

wea

lth a

dvan

ces

4.48

%-

8,79

58,

881

8,99

69,

004

9,12

720

3,81

7-

248,

620

Paya

bles

- gen

eral

*-

--

--

--

36,7

3936

,739

- ren

tal d

epos

its a

nd te

nant

bon

ds5.

48%

10,3

24-

--

--

--

10,3

24- r

enta

l pro

perty

wat

er c

onsu

mpt

ion

*-

--

--

--

1,04

11,

041

Tota

l fin

anci

al li

abili

ties

10,3

2485

8,77

128

3,09

718

3,39

338

3,58

930

,947

621,

729

37,7

802,

409,

630

*

not

app

licab

le fo

r non

-inte

rest

bea

ring

finan

cial

inst

rum

ents

.**

T

he $

808

mill

ion

repr

esen

ts th

e va

lue

of th

e bo

rrow

ings

por

tfolio

cov

ered

by

inte

rest

rate

cap

s.




51(c) Net Fair Values

The following table provides details of both carrying value and net fair value of financial instruments. The amountsdisclosed do not reflect the value of assets and liabilities that are not considered financial instruments.

Initial recognition and measurement is at fair value. The transaction cost or face value is equivalent to the fair value.Subsequent measurement is at amortised cost using the effective interest method.The fair value of short-term receivables and payables is the transaction cost or the face value because there is no interestrate applicable and subsequent measurement is not required as the effect of discounting is not material.

ConsolidatedTotal carrying amount Aggregate Net Fairas per the Balance Valuesheet

2007 2006 2007 2006$000 $000 $000 $000

Financial AssetsCash and cash equivalents assets 110,978 152,819 110,978 152,819Short term deposits 149,802 149,861 149,802 149,861Receivables - general, land debtors, rents, and bonds assistance 45,879 46,501 45,879 46,501Receivables - Loans - homebuyers 1,252,922 1,654,198 1,252,922 1,654,198Receivables - Loans - other commercial organisations 177 538 177 538Receivables - Loans - local and statutory 19 22 19 22Interest rate caps 2,300 1,988 2,300 1,988Total financial assets 1,562,077 2,005,927 1,562,077 2,005,927Financial LiabilitiesBorrowings - State nominated 279,285 283,134 226,703 242,261Borrowings - WATC 1,594,136 1,829,772 1,605,422 1,846,546Borrowings - Commonwealth advances 239,825 248,620 204,185 220,034Creditors - general, rental deposits, tenant bonds, rental property water 49,952 48,104 49,952 48,104consumptionTotal financial liabilities 2,163,198 2,409,630 2,086,262 2,356,945

51(e) Hedging Instruments

General Hedges

The Consolidated Entity has entered into interest rate swap, cap and collar agreements as the hedging component of itsInterest Rate Risk Management policy.



EXPLANATORY STATEMENT OF FINANCIAL RESULTS

52(a). COMPARISONS OF ESTIMATES 2006/2007 AND ACTUAL OPERATING RESULTS FOR 2006/2007

Section 40 of the Financial Management Act 2006 requires The Housing Authority to prepare annual budget estimates. Treasurer'sInstruction 945 requires an explanation of significant variations between these estimates and actual results. Significant variations areconsidered to be those greater/less than $5,000,000 or 10% greater/less than the budgeted amount.

Budget Actual Variation$000 $000 $000

1. Revenues have varied by the following:

* Sales. 208,811 245,932 37,121Revenue increased by $37.121 million from original budget due to increased sales volumes in conjunction with higher land prices being achieved in 2006/07.

* Rental Revenue 146,628 223,274 76,646The variance of $76.646 million is due to the consolidation of GROH ($78.940million) into the Housing Authority. Offsetting this, rental properties (socialhousing) rent was $2.197 million under forecast budget.

* Interest RevenueThe interest revenue variance of $16.051 million is due predominantly to a 109,941 93,890 (16,051)reduction of interest earned on Keystart preferential shares. The Keystart decrease($19.206 million) is offset against a corresponding decrease in interest expense.

* Developers Contribution 1,000 2,603 1,603Contributions of equity into Community Housing projects increased due to moreentities participating in joint ventures than initially forecast.

* Other Revenues 13,262 30,997 17,735The variance of $17.735 million is primarily due to increased revenue received from the Keystart dividend. The original budget of $6 million was based on a partialdividend which was increased to $24.5 million as part funding for an affordable homeloan scheme.

2. Gains have varied by the following:

* Gains on Disposal of Non-Current Assets 9,765 6,750 (3,015)The decrease of $3.015 million is due to sales of rental properties being less thaninitially forecast.

3. Expenses have varied by the following:

* Cost of Sales 121,425 111,561 (9,864)This variance arose as the decrease of $9.864 million was the result of reducedexpenditure for land selling expenses of $5.08 million and less than forecast cost of landexpenses of $7.099 million.

* Rental Expense 107,989 177,773 69,784Rental expenses have increased by $69.784 million primarily due to theconsolidation of GROH ($56.126 million) into the Housing Authority. In addition,there was increased expenditure of $13.660 million for social housing properties,comprised of maintenance $6.715 million and $6.945 million for improvements andother rental expenses . The increase in maintenance and improvements to ensureproperty standards are maintained was due to the higher costs for labour and goods.

* Community Support 76,629 94,877 18,248This expense increased by $18.248 million predominately due to increasedexpenditure on remote Indigeneous housing and infrastructure support. Theprogramme was accelerated during the year to improve conditions in the remotecommunities.




52(a). COMPARISONS OF ESTIMATES 2006/2007 AND ACTUAL OPERATING RESULTS FOR 2006/2007 (Continued)Budget Actual Variation

$000 $000 $000

* Employee Expenses 43,126 51,484 8,358The variance of $8.358 million is mainly due to an increase in salary expense frompay increases met during the current financial year and the accumulated effect onsuperannuation costs. Consolidation of GROH into the Housing Authority alsoadded $4.892 million to employee expenses.

* Supplies and Services 13,445 15,896 2,451The variance of $2.451 million is attributable to the consolidation of GROH ($0.686million) into the Housing Authority and increased expenditure above initial forecastfor other cost and expenses of $1.196 million.

* Finance Costs 143,712 132,357 (11,355)Borrowing cost reduced by $11.355 million due to a reduction in borrowing costsfrom Western Australian Treasury Corporation for Keystart ($19.206 million). TheKeystart decrease in borrowing costs is offset against a decrease in interest revenue.The variation reflects a higher level of debt repayment due to increased dischargesand reduced demand for new borrowings than originally forecast. Offsetting theKeystart decrease is an increase of $6.608 million for GROH finance costs.

* Depreciation and Amortisation Expense 51,213 68,959 17,746Depreciation and amortisation expenses increased by $17.746 million due to theeffect of a sustained rise in property values over the period. The effect of this wasan increase in depreciation above forecast projections. The consolidation of GROHinto the Housing Authority also meant an additional $5.696 million included in theactuals.



52(b). COMPARISONS OF ACTUAL OPERATING RESULTS FOR 2006/2007 WITH THOSE OF THE PRECEDING YEAR Details and reasons for significant variations between actual operating results for 2006/2007 and the preceding year aredetailed below. Significant variations are considered to be those greater/less than $5,000,000 or 10% greater/less than theactual amount for the preceding year.

Actual Actual Variation2007 2006

1. Revenues have varied by the following: $000 $000 $000* Sales revenue increased by $51.330 million due to increased sales volumes and 245,932 194,602 51,330

market values from a buoyant land sales market.

* Rental revenue increased by $86.377 million predominantly due to an additional 223,274 136,897 86,377$78.940 million of rental revenue from the amalgamation of the activities of theGovernment Regional Officers Housing (GROH) into the Housing Authority from1 July 2006.

* Commonwealth grants and contributions decreased by $8.038 million due to 136,939 144,977 (8,038)reduced funding for Indigenous programs.

* Interest revenue decreased by $11.343 million predominantly due to an decrease of 93,890 105,233 (11,343)interest earned in Keystart preferential shares of $7.761million due to a reduction intotal borrowings. There was a decrease in interest earned on Housing Authorityloan schemes of $4.526 million due to a reduced loan book.

* Developers contributions increased by $0.358 million due to increased contributions 2,603 2,245 358for community housing projects.

2. Gains have varied by the following:* Gains on disposal of non-current assets increased by $6.449 million due to 6,750 301 6,449

improved net disposal outcomes from sale of rental and shared equity properties.

3. Expenses have varied by the following:* Rental expenses have increased by $61.473 million predominately due to an increase 177,773 116,300 61,473

in maintenance expenses on public housing of $5.242 million and additional rentalexpenses of $56.126 million from the amalgamation of GROH activities.

* Employee benefits expense increased by $9.833 million due to an increase 51,484 41,651 9,833relating to the amalgamation of GROH activities of $4.892 million and an increase of$4.941 million relating to salary and superannuation expense.

* Supplies and services increased due to an increase in personnel and general 15,896 12,985 2,911administration expenses of $2.226 million and an increase relating to theamalgamation of GROH activities of $0.686 million.

* Depreciation and amortisation expenses increased by $14.632 million 68,959 54,327 14,632predominately due to an increase relating to the amalgamation of GROH of $5.696million and an increase of $8.675 million relating to general increases in propertyvalues.

* Accommodation expenses increased by $0.587 million due to an increase of $0.196 4,568 3,981 587million relating to the amalgamation of GROH and general increases in officeaccommodation expenses of $0.391 million.

* Other expenses increased by $4.023 million predominately due to an increase in 19,468 15,445 4,023total expense for receivables and held for sale impairment of $5.603 million. Thesewere offset by a reduction in conveyancing costs of $1.310 million and a decrease of$0.482 million in loan scheme expenses.

4. Grants and subsidies from State Government have varied by the following.* State grants have decreased due to reduction in grant funding for public housing of 32,578 36,473 (3,895)

$3.870 million.



Consolidated Forecast Balance Sheet2007/08

Consolidated Housing Authority

CURRENT ASSETSCash Assets 55,931,000 31,024,000 Restricted Cash Assets 16,808,000 16,808,000 Receivables 48,386,000 48,340,000 Inventories 29,897,000 29,897,000 Other Financial Assets 154,724,000 - Other Assets 13,733,000 13,733,000 Non Current Assets Classified as Held for Sale 9,026,000 9,026,000 TOTAL CURRENT ASSETS 328,505,000 148,828,000

NON CURRENT ASSETSLand Freehold 332,661,087 332,661,087 Joint Venture Land 139,382,913 139,382,913 Acounts Receivable 1,000,000 1,000,000 Other Financial Assets 974,866,000 974,080,000 Rental Properties 9,120,220,168 9,120,220,168 Community Housing 431,260,402 431,260,402 Shared Equity Properties 223,791,896 223,791,896 Other Properties 37,629,219 37,629,219 Infrastructure (GROH) 239,000 239,000 Plant and Equipment 9,559,000 9,127,000 Buildings under Construction 138,099,000 138,099,000 Other Assets 5,451,000 26,000 Intangibles 2,393,000 2,393,000 TOTAL NON CURRENT ASSETS 11,416,552,685 11,409,909,685 TOTAL ASSETS 11,745,057,685 11,558,737,685

CURRENT LIABILITIESInterest Bearing Liabilities 32,858,000 32,858,000 Payables 32,591,000 30,504,000 Other Liabilities 39,957,000 31,715,000 Provisions 9,848,000 9,848,000 TOTAL CURRENT LIABILITIES 115,254,000 104,925,000

NON CURRENT LIABILITIESInterest Bearing Liabilities 1,954,993,000 1,954,993,000 Payables 967,000 967,000 Provisions 37,950,000 37,950,000 TOTAL NON CURRENT LIABILITIES 1,993,910,000 1,993,910,000

TOTAL LIABILITIES 2,109,164,000 2,098,835,000 NET ASSETS 9,635,893,685 9,459,902,685

EQUITYAsset Revaluation Reserve 6,643,082,061 6,641,738,061 Contributed Equity 431,264,624 431,264,624 IFRS - Equity - Non-Current Assets Held-for-Sale 6,842,000 6,842,000 Retained Profits 2,554,705,000 2,369,178,000 IFRS - Adj to Retained Earnings 10,880,000 10,880,000 IFRS - Changes in Accounting Policies - Retained Earning -10,880,000TOTAL EQUITY 9,635,893,685 9,459,902,685


Housing AuthorityConsolidated

IncomeSales 226,352,650Rent Revenue 223,993,100Commonwealth Grants and Contributions 138,780,000Interest Revenue 69,620,000Other Revenue from Ordinary Activities 13,434,000Gains 1,931,350Total Income 674,111,100

ExpensesCost of Sales 130,293,750Rental Expense 168,044,570New Living Expenses 48,267,000Community Support 110,081,901Employee Benefits Expense 50,184,203Supplies and Services 15,985,219Depreciation and Amortisation Expense 66,060,322Finance Costs 108,748,830Accommodation Expense 4,644,101Grants and Subsidies 5,922,700Other Expenses 21,023,710Other Expenses GROH 634,000Total Expenses 729,890,306

PROFIT/(LOSS) BEFORE GRANTS & SUBS FROM STATE GOVT -55,779,206

GRANTS FROM STATE GOVERNMENT 81,120,000

PROFIT/(LOSS) FOR PERIOD 25,340,794

Schedule of Income and Expenditure by Service2007/08

1�0 Housing Authority 2 0 0 6 - 0 7 A n n u a l R e p o r t © Department of Housing and Works 2007


Appendix 1 – Housing Industry Awards

In 2006-07, Housing Authority construction projects won or were finalists for various housing industry awards.

Housing Industry Association Awards

2006GreatSouthernHousingAwards

WINNER Framed Housing $200,001 & Over – Camulos Fe Lot 696 (20) Latham Street, Broomehill.

WINNER Framed Home of the Year – Camulos Fe Lot 696 (20) Latham Street, Broomehill.

2006KitchenandBathroomAwards

WINNER Most Accessible Kitchen of the Year – Endius Homes Lot 97 (169) McDonald Street (Cnr Stoneham St), Joondanna.

Master Builders Awards

WINNER Category 1 (Under $120,000) – Tara Homes Lot 41 (69) Hines Road, Hilton. Design – John Blake Architect.

FINALIST Category 1 (Under $120,000) – Trlin Developments Pty Ltd Lot 205 (450) Main Street, Balcatta.

1�0

1�1 Housing Authority 2 0 0 6 - 0 7 A n n u a l R e p o r t © Department of Housing and Works 2007

Where we are Located

HEAD OFFICE99PlainStreetEastPerth6004Tel:(08)92224666Tollfree:1800093325

METROPOLITAN OFFICESMirrabooka 6IlkestonPlaceMirrabooka6061Tel:(08)93440555

City Office605WellingtonStPerth6000Tel:(08)94762444

Midland21OldGreatNorthernHighway,Midland6056Tel:(08)92509191

Cannington 17ManningRoadCannington6107Tel:(08)93560444

ArmadaleUnit142CommerceAvenueArmadale6112Tel:(08)94971600

BentleyBrownlieTowers,Shop532DumondStreetBentley6102Tel:(08)93503700

Fremantle42QueenStreetFremantle6160Tel:(08)94300300

KwinanaShop13HubCommercialCentre40MearesAvenueKwinana6167Tel:(08)94390300

Mandurah11PinjarraRoadMandurah6210Tel:(08)95355788

SOUTHERNAlbany131AberdeenStreetAlbany6330Tel:(08)98420444

Katanning6DapingStreetKatanning6317Tel:(08)98911800

NarroginGovernmentBuildingParkStreetNarrogin6312Tel:(08)98811299

SOUTH WESTBunbury22ForrestAvenueBunbury6230Tel:(08)97922111

BusseltonSuite48‑10PrinceStreetBusselton6280Tel:(08)97524388

ManjimupUnit1030‑32RoseStreetManjimup6258Tel:(08)97711200

CENTRALKalgoorlie220HannanStreetKalgoorlie6430Tel:(08)90935200

EsperanceBalmoralSquareTheEsplanadeEsperance6450Tel:(08)90712046

Merredin44MitchellStreetMerredin6415Tel:(08)90411744

NorthamMcIverHouse297FitzgeraldStreetNortham6401Tel:(08)96221500

MID WEST / GASCOYNEGeraldtonUnionBankBuilding201MarineTerraceGeraldton6530Tel:(08)99234444

Carnarvon30RobinsonStreetCarnarvon6701Tel:(08)99411129

MeekatharraMainStreetMeekatharra6642Tel:(08)99811115

PILBARASouth Hedland CnrBrand&TonkinStsSouthHedland6721Tel:(08)91720800

Karratha3‑5WelcomeRoadKarratha6714Tel:(08)91441707

KIMBERLEYBroomeFrederickStreetBroome6725Tel:(08)91920100

DerbyLot265LochStreetDerby6728Tel:(08)91911411

Halls CreekLot73GreatNorthernHwyHallsCreek6770Tel:(08)91689300

KununurraCnrMessmateWay&KonkerberryDriveKununurra6743Tel:(08)91681588

GOVERNMENT REGIONAL OFFICERS’ HOUSING (GROH)

CentralOffice203NicholsonRdShentonPark6008Tel:(08)92866000Fax(08)92866025Tollfree:1800644708Goldfields77AHannanStreetKalgoorlie6430Tel:(08)90218107Fax:(08)90911255Karratha5/16HedlandPlaceKarratha6714Tel:(08)91444213Fax:(08)91853784SouthHedlandCnrTonkin&BrandStsSouthHedland6722Tel:(08)91402187Fax(08)91402267

FREMANTLEPRISONTheTerraceFremantleWA6160(08)93369200Fax:94307188info@fremantleprison.comKEYSTARTLevel6218StGeorgesTerracePerth6000(08)93383100TollFree:1300361517Country:1800199050Fax:(08)[email protected]

COUNTRYHOUSINGAUTHORITYSuite20AHyattCentre23PlainStreetEastPerth6004Tel:(08)93258200Freecall:1800158200Fax:(08)92213126

TTY:(08)94762446TranslationandInterpretingService:131450

www.dhw.wa.gov.au

1�1


www.dhw.wa.gov.au © Department of Housing and Works 2007

Informationaboutthisreportandrequestsandinquiriesconcerningreproductionshouldbeaddressedto:

SteveAlthamManager,CommunicationsandMarketingLevel5,99PlainStreet,EastPerth,WesternAustralia6004.Telephone(08)92224885Facsimile(08)92212551Email:[email protected]


Documents

Housing Authority 2006-07 Annual Report · 2011-11-25 · Western Australia. ... And the key to this success lies with our staff. Our management group must provide the leadership