annual report · 2019. 12. 16. · the hon. lauren moss mla minister for tourism, sport and culture...

Annual Report2018–19

We live, work, rest and play on land and water that is the home of the Larrakia people.

We acknowledge and pay our respects to elders past, present and future.

Their culture and attachment to country is recognised and respected.

Photo: PH0001/0019, William C. J. Tracey Collection, Larrakeyah Aboriginal camp Darwin

The Hon. Lauren Moss MLA

Minister for Tourism, Sport and Culture

Parliament House

DARWIN NT 0800

Dear Minister

I am pleased to present the 2018–19 annual report of the Darwin Waterfront Corporation.

The report details the activities and operations of the corporation for the year ending 30 June 2019 in accordance with Section 30 of the Darwin Waterfront Corporation Act (the Act).

There is no additional information included in the report required to be presented under Section 30 of the Act as there were no directions given under Section 20(1) of the Act during the reporting period.

The financial statements included in the report have been prepared from proper accounts and records and reflect obligations and relevant standards pursuant to Section 31 of the Act.

The Auditor-General has audited the corporation’s financial statements for the year ending 30 June 2019, and her comments are contained in this report.

Yours faithfully

TRACEY HAYES

ChairDarwin Waterfront Corporation

25 October 2019

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2018–19 ANNUAL REPORT

Contents

Overview 3

Purpose of this report 3

2018–19 highlights 4

From the Chair 5

About the Darwin Waterfront Corporation 7

About us 7

Our vision 7

Our mission 7

Our focus 7

Our values 8

Our team 9

Our employees 9

Board members 10

Performance review 18

Business growth and development 18

Darwin Convention Centre 18

Charles Darwin University 26

Hotels 27

Luxury hotel development 28

Commercial retailers 29

Stokes Hill Wharf 31

Precinct management and infrastructure 33

Roads and car parks 33

Contractors 35

Pedestrian traffic and Wi-Fi use 37

Improving amenity 37

Place-making 38

Wave Lagoon 38

Recreation Lagoon 39

Big Buoy Water Park 39

New beach volleyball court at the Recreation Lagoon 40

Events and visitation 42

Marketing successes 48

Enhancing public spaces 49

Cruise ship market 49

Long-term future ferry terminal planning 51

Stakeholder and community engagement 53

Forums 53

Residents 53

Community 55

Participation and affiliations 55

Governance 56

Risk management 56

Looking ahead to 2019–20 58

Development and sustainable business growth 58

Financial statements 65

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Overview

Purpose of this report

This report aims to inform interested stakeholders, government agencies and the Northern Territory community about our strategic focus, performance and future business direction. Further information about the Darwin Waterfront Corporation is available at www.waterfront.nt.gov.au


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2018–19 highlights

Patronage Local investments

Revenue

21,836,000

22,147,000

$21.8M

$22M

$22.2M

$21.6M

$21.2M

$21.4M

20182019

Grant funding split

Darwin Waterfront Corporation $4,864,000

Stokes Hill Wharf $1,393,000

Darwin Convention Centre $15,538,000

The Waterfront hosted a total of 249 public events attracting 97 532 additional visitors to the precinct.

The Waterfront attracted an estimated 1.2M

visitors, with a 7 per cent increase in patrons from

the prior financial year.

Fair value of assets under management

20%

6%

41%

33%

Land $52.4M

Buildings $16.7M

Buildings under finance lease $109.9M

Infrastructure $88.9M

The Wave Lagoon attracted 103 643 people

and Big Buoy Water Park attracted 22 817.

The Darwin Convention Centre hosted 127 events that attracted an estimated 75 000 people.

There were 73 cruise ship visits to Fort Hill Wharf, bringing approximately 49 550 passengers.

The two hotels had 94 112 in-house guests.

Rates revenue $847K from 308 rateable properties

Grants revenue

$4.5M in payments to

local contractor for maintenance

and operational services of the

Darwin Waterfront Precinct and

Stokes Hill Wharf.

71%

22%

7%

From the Chair

It is with pleasure that I present the Darwin Waterfront Corporation Annual Report for 2018–19.

The Darwin Waterfront Precinct continues to be a ‘hot spot’ attraction for visitors and locals alike, with more than 1.2 million visitors estimated annually.

Visitation for events continued to increase in 2018–19, with 249 events hosted during the year attracting

more than 97 000 extra people to the precinct. Some event highlights for the year were the Arafura Games opening and closing ceremonies as well as the beach volleyball games, a bolstered Christmas lights display with a ‘letters to Santa’ competition and the first Waterfront Territory Day Celebrations.

New Year’s Eve at the Waterfront remains Darwin’s biggest public New Year celebration, with an estimated 7000 people attending in 2018.

The Waterfront continued its place-making initiatives during 2018–19. During the year, the precinct’s playground won a national award through the Kidsafe National Playsafe Design Awards, the parklands were beautified with new fairy lights, we introduced smartphone parking apps, we installed a new full-sized beach

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volleyball court and we brought Darwin CBD’s first Tesla public charging stations to the Kitchener Drive multi-storey car park.

The Darwin Waterfront Corporation continued to work closely with our businesses during the year. In April 2019, we welcomed a new restaurant, ‘Snapper Rocks’, which worked closely with the corporation to extend the alfresco area, creating a new and exciting experience for visitors and locals alike.

Our Darwin Waterfront Corporation team continued their hard work during the year to maintain the world-class precinct as the iconic face of Darwin—a tourism attraction and the centre of major tourism development in the Top End.

Looking forward to 2019–20, our strong focus is on future master

planning and connectivity between major developments including the luxury hotel, cruise ship terminal developments, refurbishing the Wave Lagoon and the earmarked Larrakia Cultural Centre.

I would like to acknowledge and thank the corporation’s staff and board members for their dedication and commitment to the success of Darwin’s premier lifestyle precinct, which continues to be the jewel in Darwin’s crown—a great place to live, a favourite spot for locals and a tranquil escape for visitors.

TRACEY HAYES

Chair

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About the Darwin Waterfront Corporation

About us

The Darwin Waterfront Corporation is a statutory authority established by the Northern Territory Government under the Darwin Waterfront Corporation Act. It is responsible for:

• developing, managing and servicing the Darwin Waterfront Precinct for the benefit of the community

• promoting the precinct as a place of residence and business, and a venue for public events and entertainment.

Our vision

The Darwin Waterfront Precinct is a premier lifestyle destination of choice where people want to live, learn, work and play.

Our mission

To develop, maintain and promote the Darwin Waterfront Precinct as a gathering place where meaningful lifestyle, business and learning experiences happen and are a key driver of the Territory’s economic growth.

Our focus

Our key focus areas are:

Development and sustainable business growth

We work closely with government agencies and private investors on the development and master planning of

the precinct’s remaining 10 hectares (approximately) of prime development sites. This includes exploring opportunities and encouraging new investment to ensure the precinct continues to be a significant contributor to the Territory’s economy.

We establish and maintain effective lease and operational agreements with businesses to give certainty for future planning. We work with those businesses to revitalise existing products and activate new ones that give visitors and the community a diversified offering.

We also oversee the operation and performance of the Darwin Convention Centre. The centre was developed through a public private partnership between the NT Government and a private sector consortium, Darwin Cove Convention Centre Pty Ltd.

The consortium will run the centre for 25 years, until June 2033, at which time it will be handed back to the Territory. The corporation administers the contractual arrangements for the Darwin Convention Centre to ensure it is operated and marketed in accordance with the concession deed.

Property management, infrastructure and services

The Darwin Waterfront Corporation is responsible for the management, operation and maintenance of the precinct’s public infrastructure, including incidents, risk management and emergency response.

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We provide municipal services to the precinct and manage its civic amenities, including:

• capital works and minor new works

• sanitation, garbage collection and street cleaning

• roads, footpaths, parking and traffic control

• storm drainage and water quality in recreational aquatic facilities

• all public places, including parks, toilets, elevators, the sea wall, foot bridge, art and street lighting.

Place-making

Place-making is about transforming a public space into a destination that attracts people and activity, instills a sense of community pride and encourages development that leverages the location’s physical, cultural and social attributes.

Community participation is at the centre of successful place-making, so we engage with our stakeholders to understand their needs and aspirations, involve them in our planning and collaborate on place-making activities to ensure the precinct is a vibrant place where people want to be.

We activate our place-making goals through a year-round program of events and by supporting third-party commercial operations that benefit the community—residents, businesses, learning institutions, property owners, vessel owners, students and visitors to the precinct.

Stakeholder and community engagement

The precinct has a number of stakeholders with diverse needs.

The corporation works with these stakeholders, taking a collaborative approach to developing and enhancing the precinct while balancing competing needs.

The views of our wider community are also important to us, particularly around their participation in the public events at the precinct and our place-making objectives.

Our values

Collaboration – we work in partnership across government, with our stakeholders and with the wider community to leverage strengths and learn from each other, to explore and maximise opportunities, and to shape our offering and support.

Innovation – we think laterally to make a difference through creativity and motivational actions.

Continual improvement – we strive to deliver better outcomes through efficiencies and streamlined processes that minimise cost and avoid duplication of effort.

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Professionalism – we conduct our business to the highest commercial standards of ethical behaviour and transparency.

Responsibility – we are committed to safety, security and sound environmental practices and reflect best-practice principles in the conduct of all our activities.

Our team

Our board guides our strategic direction and the delivery of our outcomes.

It provides stewardship and vision through strategy formulation and policy

development and ensures legislative, financial and governance obligations are met.

The Chief Executive Officer oversees the implementation of the strategy set by the board and with the General Manager, manages the corporation’s day-to-day operational and administrative functions.

Our employees

In 2018–19, we employed 11 people in four operational areas: finance, projects and operations, events and marketing, and business development.

DWC BOARD AND CEO

GENERAL MANAGER

FINANCIAL CONTROLLER

BUSINESS SUPPORT OFFICER

SENIOR RANGERSENIOR EVENTS COORDINATOR

RECEPTIONIST/ ADMIN ASSISTANT

RANGER

BUSINESS DEVELOPMENT

MANAGER

OPERATIONS MANAGER

EVENTS & MARKETING MANAGER

Darwin Waterfront Corporation organisational chart

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Board members

Our board directs and monitors the corporation’s performance.

2018–19 Darwin Waterfront Corporation Board members:

Ms Tracey Hayes (Chair)

Appointed 1 July 2018

Tracey is a senior leader in business and industry, with considerable experience as a Chief Executive Officer, board Chair, company director and board member. She is a strong business professional with substantial Asian engagement experience, skilled in crisis management, public affairs, negotiation, corporate social responsibility and strategic development.

Tracey is Chair of the Darwin Waterfront Corporation, a member of the Order of Australia Honours Council, on the board of the Australia Indonesia Institute, the Cooperative Research Centre for Northern Australia, and the North Queensland Livestock Industry Recovery Agency.

A long-term Territorian, pastoralist, pilot, Justice of the Peace and small business owner, Tracey was the first female Chief Executive Officer of the Northern Territory Cattlemen’s Association and was tasked with leading the billion-dollar NT pastoral industry.

Tracey has a Global Executive Master of Business from the University of Sydney, studied business management and rangeland management with the University of Queensland and has continued her agribusiness studies with the Harvard Business School short course program.

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Mr Alastair Shields (Chief Executive Officer)

Appointed as CEO 30 March 2017

As well as Chief Executive Officer of the Darwin Waterfront Corporation, Alastair Shields chairs both the AustralAsia Railway Corporation and the Racing Commission (NT) and is the NT Government representative on the Joint Management Board for Kakadu National Park. Alastair also provides specialist consulting services.

From 2013 to 2017, Alastair held a number of Chief Executive Officer roles for Northern Territory Government agencies, including the Department of Tourism and Culture (from its establishment in September 2016 until December 2017), the Department of Land Resource Management (February 2015 until December 2016), the Department of Business (during 2014) and the Department of Children and Families (2013).

Alastair was born and raised in Darwin and has more than 35 years of public sector experience in the Northern Territory, most of it at the Northern Territory Department of the Attorney General and Justice and its predecessors. He has been involved in commercial negotiations for many major projects, including the AustralAsia Railway, the Darwin City Waterfront redevelopment (including Darwin Convention and Exhibition Centre), the long-term lease of the East Arm Port and the Marine Supply Base.

Alastair has qualifications in law and accounting from Charles Darwin University and a Master in Public Administration from the Australia and New Zealand School of Government (ANZSOG). In 2007, Alastair was awarded Australian Government Lawyer of the Year by the Australian Corporate Lawyers Association.

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Mr Kelvin Costello (member)


Kelvin Costello is a Larrakia man who has been involved in many major economic projects in Darwin over the last 20 years.

Kelvin has been CEO of a number of non-government organisations, such as Ironbark Aboriginal Corporation and Larrakia Nation Aboriginal Corporation.

He was also a non-executive director on the Larrakia Development Corporation (LDC), a committee member on the INPEX/Larrakia Advisory Committee and the Chairman of the ConocoPhillips/Northern Land Council/Larrakia – Wickham Point Liaison Committee during the construction phase of the Darwin LNG plant from 2003 to 2005.

Kelvin has been involved in the Ichthys project since 2008 though the LDC and worked with JKC Australia LNG during the construction phase of the Ichthys onshore LNG facilities project for more than six years.

Kelvin has been active in the Larrakia Kenbi land rights and the Larrakia native title claims.

Kelvin has a background in employment, training and business engagement and holds a Diploma of Business (Governance), a Diploma of Human Resources Management and a Diploma of Project Management.

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Mr Andrew Kirkman (member)

Appointed as member 30 March 2017

Andrew Kirkman was appointed Chief Executive Officer of the Darwin Waterfront Corporation on 21 April 2015. He was later appointed as Chief Executive of the Department of Infrastructure, Planning and Logistics in September 2016. With Andrew’s change in position and the realignment of the Darwin Waterfront Corporation under the Department of Tourism and Culture, Andrew resigned as the Chief Executive Officer of the Darwin Waterfront Corporation on 30 March 2017. He was reappointed as a board member of the corporation by the minister.

Andrew has more than 20 years of experience in the NT Public Sector. Before he joined the corporation, he

was Chief Executive of the Department of Transport, General Manager for the Land Development Corporation, and both Deputy Chief Executive and Executive Director in the Department of Housing. Andrew also held key roles in the AustralAsia Railway Corporation, the Department of the Chief Minister and NT Treasury.

He has worked in finance and commercial roles in the private sector, locally in the mining industry and overseas on public private partnerships.

Andrew grew up and undertook all his schooling in the Northern Territory and has tertiary and post-graduate qualifications in commerce and business.

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Mr Charles Burkitt (member)


Charles is a consultant, based in Darwin, who provides corporate advice and property solutions for businesses in northern Australia.

He has extensive board experience, having been an active board member of numerous local and national organisations for more than 20 years. Current positions include non-executive director roles with Australian Red Cross and Power and Water Corporation, and Chair of the Community Benefit Fund Committee.

Charles commenced his professional career in Darwin, where he is originally from, as an experienced investment

adviser. He specialised financial markets, having worked in that industry for more than 15 years, before being involved in the commercial property sector for a number of years.

Charles is passionate about the future growth and development of the Northern Territory. He enjoys an active lifestyle with an interest in most sports, leisure and local community activities.

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Ms Anne Tan (member)

Appointed 30 March 2017

Anne has spent more than 25 years in the Northern Territory Public Service. She is the General Manager of Economic Innovation for the Department of Trade, Business and Innovation.

Anne has held various roles in a number of NT Government agencies, including the Department of the Chief Minister, Power and Water Corporation and Northern Territory Treasury.

Anne holds degrees in law and economics and has an Executive Masters in Public Administration from the Australia and New Zealand School of Government (ANZSOG). Anne was awarded the Public Sector Medal in 2016.

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Ms Jacqueline Jennings (member)


For the past decade, Jacqui Jennings has worked as a non-executive director on both government and non-government boards in the health, education, finance and tourism sectors. Jacqui’s focus is accountability and risk, both operational and financial. She was previously the Vice President of Marketing and Business Development for BHP Steel, which ensures she brings a vision that is commercial, strategic and sustainable.

Jacqui started her career as a materials engineer with BHP, where she worked for 23 years in technical, production and sales and marketing roles, both nationally and internationally. Jacqui is currently the Chair of the Mt Buller and Mt Stirling Alpine Resort Management Board and a non-executive director with Australian Scholarships Group.

Jacqui has a doctorate in Management, a Masters degree in Management and a Bachelor degree in Metallurgy. She is also a Graduate of the Australian Institute of Company Directors’ Course.

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Performance review

Business growth and development

Darwin Convention Centre

The Darwin Convention Centre was developed under a ‘public private partnership’ between the Northern Territory Government and the Darwin Cove Consortium. The centre is operated by AEG Ogden and maintained by Honeywell.

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In 2018–19, the Darwin Convention Centre hosted 127 events that attracted 75 000 people and contributed millions of dollars in national and international delegate spend to the Northern Territory economy.

The centre is now an integral part of Darwin, economically and socially. In the past 10 years, events held at the centre have attracted national and international delegates to Darwin and generated significant economic benefits for the local economy. This includes increased business for hotels, restaurants and tourism operators.

Darwin’s close access to Asia, tropical setting, world-class facilities, quality dining and top service are its selling points. It appeals to associations and organisations that want a special environment for their event that

promotes innovative thinking, business leadership, social engagement and authentic connections.

Darwin Convention Centre’s marketing campaign targets national and international associations, corporations, franchises, professional conference organisers and event planners who are looking for a world-class venue, unique Top End experiences and a memorable destination for their guests.

The centre hosts Australian and international scientists, researchers, government officials, medical practitioners, defence force personnel, academics and business leaders in industries as diverse as tropical health, agribusiness, education and training, defence, mining, local government, environment, technology, tourism, oil and gas, and building and construction.

2018–19 major events:

> The Property Congress

> Australia Otis Media Conference

> The Australian Population Conference

> Rural Medicine Conference

> Darwin Aboriginal Art Fair

> One Belt One Road

> NT Resources Week

> Ports Australia Conference

> Australian Pipelines and Gas Association Conference and Exhibition

> ATEC Meeting Place

> SARRAH Conference

> Northern Australia Defence Summit

> Arafura Games

> Lowitja Institute International Indigenous Health and Wellbeing Conference

> Inspiring Women in Technology

> Australian Meteorological and Oceanographic Society Conference

> International Consultants for Education and Fairs ANZ Workshop

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New GM for Darwin Convention Centre

Peter Savoff took over the reins as the General Manager at the Darwin Convention Centre in April 2019.

Peter came to Darwin from Brisbane, where he led the development and management of the multi-award winning Emporium Hotel in Brisbane’s Fortitude Valley. He then launched the new Emporium Hotel at South Bank in 2018.

Peter has more than 25 years of experience in international hotel management, with extensive experience in operations, marketing and business development. He spent many years in the role of hotel general manager and was Area Director of Marketing for InterContinental Hotels across

Queensland, the Northern Territory and Papua New Guinea.

Before launching the Emporium Hotels Group, Peter spent three years as CEO of McInnes Wilson Lawyers, one of Queensland’s largest law firms, where he was responsible for growing the business and its profitability. However, the lure to return to the hotel industry and start up a new hotel brand was a challenge too exciting to refuse.

Peter launched his management career with a Bachelor of Business (Hotel Management) from Victoria University and later completed a Master of Business Administration at the University of South Australia, followed by a Master of Commercial Law from the University of Melbourne.

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He served as a board member of Business South Bank for seven years, the Lord Mayor’s Economic Development Steering Committee, the Board of Tourism and Events Queensland for three years and as a QHA delegate to the National Accommodation Hotel Division. He also served on the board of the Queensland Tourism Industry Council since 2012, most recently as Deputy Chair until 2019.

Peter is no stranger to the Top End: as InterContinental Hotel’s head of marketing around 15 years ago, he was a regular visitor to Darwin.

‘When I first arrived for this role, I couldn’t believe how much the city has transformed in just over a decade’, said Peter.

‘Being in Darwin today feels like it was when I was in Brisbane 10 years ago; you can just feel the incredible growth that’s about to happen. I can see that happening for Darwin soon—it’s just got such a ‘go-ahead’ feeling at the moment.

‘What’s incredible to see is the spirit of collaboration here, between government, business groups, the education sector, Defence, agriculture, mining and resources. The industry partnerships here in Darwin and the wider NT are extraordinary.’

Peter said he believes the Darwin Convention Centre is as world class as any convention centre in Australia.

‘We are a very real competitor’, he said.

‘We have a city here, supported by a convention centre, that is absolutely world class. And even though it’s just had its tenth anniversary, the condition of the facility is incredible. People visiting often get the feeling the building is only a few years old.

‘And what helps to transform people’s opinions of this place is when they get here and they see not just the many options of what the Territory has to offer delegates coming to a convention, but that level of uniqueness in Darwin. It’s an exotic destination that cannot be replicated anywhere in Australia. The NT and the outback and the culture of our Indigenous people here is like nowhere else in Australia.’

Peter has settled into his role well and has already formed a strong partnership with the Darwin Waterfront Corporation.

‘The team at the corporation have all been spectacular and very cooperative’, he said. ‘They share the mindset that what we have here is something very special and something we can build upon together.’

As for his new home in Darwin, Peter said he and his wife couldn’t be happier to be here. ‘We both love it in Darwin already’, he said. ‘This is a whole new rejuvenation and a new challenge, and I’m grasping it with both hands.’

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Conferences achieve record numbers

Several organisations that hosted their annual conference at the Darwin Convention Centre achieved record numbers of attendance in 2018–19.

The Property Council of Australia held its annual conference in Darwin from 12 to 14 September 2018. The Darwin event attracted a record-breaking 760 delegates. The 2018 event surprised organisers when it broke the 2017 attendance record.

Delegates came from all over Australia, and some 20 per cent brought partners to experience the Northern Territory.

The annual Rural Medicine Australia (RMA) Conference was held in Darwin from 24 to 27 October 2018. RMA is the peak national event for rural and remote doctors in Australia and internationally. The event aims for 450 conference delegates each year.

‘Our final count was 775 attendees’, said Michelle Cuzens, the event coordinator. ‘It was a big number in Darwin—one of our biggest.’

The 46th biennial Ports Australia Conference was held at the Darwin Convention Centre in August 2018 and also achieved high attendance numbers.

‘Delegates came from every state in Australia. We hadn’t done an event in Darwin for a while, and we didn’t know what to expect—but we far exceeded our target’, said the conference organiser, Cameron Armstrong of Essential Experiences.

And more than 410 delegates converged on Darwin for one of Australia’s leading inbound tourism conferences, the 2018 Australian Tourism Export Council (ATEC) Meeting Place. The event gave inbound tour operators the opportunity to experience the Top End and enjoy some amazing pre- and post-conference experiences.

‘This year, we achieved record attendance, with more than 410 delegates attending the Darwin conference. We didn’t know what to expect hosting the event in Darwin for the first time, but the facilities were worldclass and the experiences were “authentically Australian”’, said ATEC Managing Director, Peter Shelley.

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International wins for the centre

Darwin will host more international events in the years to come with the centre’s new international strategy starting to see immediate results. During 2018–19, the Darwin Convention Centre won the rights to host the World Federation of Neuroscience Nurses Congress in July 2021, which will see delegates from all over the world come to Darwin.

Arafura Games

The Darwin Convention Centre turned into a sporting precinct in April 2019 when it hosted six sports of the 2019 Arafura Games and the Business Engagement Program. The centre was home to the 3x3 Basketball Pro Hustle, boxing, badminton, Muay Thai, sepak takraw and weightlifting across the 10-day program. The Business Engagement Program involved a number of trade, tourism and

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investment business sessions, and the History of Trade was showcased in the centre.

The centre was also a significant caterer for the games, supplying meals for 1500 athletes and 800 volunteers and officials daily.

Meet Darwin International

In partnership with the Northern Territory Convention Bureau, the Darwin Convention Centre hosted the inaugural Meet Darwin International familiarisation program. The program gave 12 delegates from Singapore invaluable insights into the city’s culture, cuisine, business and industry.

Darwin’s easy access to Asia was highlighted in the program, with delegates flying just over four hours from Singapore to Darwin. This close proximity to Asia makes Darwin an appealing destination for international and Asia Pacific business events.

The delegates were impressed with their visit to some of Australia’s unique organisations based in Darwin, such as

the iconic Royal Flying Doctor Service and the National Critical Care and Trauma Response Centre. They also toured business events infrastructure in the city and explored the Top End, including a short flight to Katherine for a day trip exploring Nitmiluk Gorge.

These familiarisation programs are part of the centre’s long-term strategic plan to attract international events to Darwin.

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Charles Darwin University

Charles Darwin University’s College of Business and Law at its Waterfront campus had its largest-ever higher education student intake in Semester 1 2019, with an increase of more than 40 per cent compared with the previous year.

The Law School, which is based on CDU’s Casuarina campus, also enjoyed record enrolments, with more than 250 new students signing up for the new three-year Bachelor of Laws, which until 2019 was conducted over a four-year period.

Planning is under way to relocate the Law School from the Casuarina campus to the Waterfront campus from Semester 1, 2020 to consolidate the college’s activities in the city. This move will bring more students to the Darwin CBD and allow for superior teaching and learning outcomes in the world-class facilities already established at the Waterfront.

The move will also give law students easier access to the law and court precinct in the city.

During the year, Waterfront campus student Kimberley Brewster, who is completing a Certificate IV in

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Total guests in-house:

94 112

Average occupancy level:

80.24 per cent

Busiest months:

July August

Quietest months:

January February

Average length of stay:

2.47 days

Business Administration, won the 2018 Northern Territory Awards ‘Trainee of the Year’. She went on to represent CDU and the Northern Territory at the Australian Training Awards, where she won 2018 ‘Australian Trainee of the Year’. Kimberley continues to be an ambassador for CDU’s vocational education and training (VET) program, and on multiple occasions has recognised the role of her Waterfront lecturers in helping her achieve success.

Each year, CDU’s Waterfront campus hosts events during October Business Month (OBM).

Dean of the College of Business and Law, Professor David Low, said OBM events were a great way to showcase the facility while delivering upskilling and capability-enhancing workshops that benefit local businesses.

‘We are thrilled to be hosting a number of events at the Waterfront because we will be able to give participants an understanding of the great facility we have and the type of knowledge and expertise that exists in the college’, Professor Low said.

Hotels

The Darwin Waterfront Precinct has two hotels: Vibe Hotel Darwin Waterfront and the Adina Apartment Hotel Darwin Waterfront, which offer 120 hotel-style rooms and 121 self-serviced apartments, respectively.

The hotels share a restaurant, swimming pool, gym and common foyer.

New solar panels were installed in the hotels and were operational in December 2018. The new environmentally friendly measures have reduced the hotels’ total energy consumption by generating over 35 per cent of power using solar energy.

Efforts to increase the hotels’ Indigenous employment levels continued in 2018–19, with grant funding approved to employ another five Indigenous staff under the Indigenous Land Corporation’s ‘Real Jobs’ program. This will bring Indigenous employment at the hotels to 32.25 per cent.

Hotel fast facts for 2018–19:

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Luxury hotel development

Works on the luxury hotel development continued in 2018–19. The hotel will be developed by Landbridge Australia and operated by Westin Hotels and Resorts under a 25-year management agreement. The hotel is scheduled to be opened in 2022.

Landbridge received Northern Territory Development Consent Planning Approval for the Westin Darwin Hotel development in July 2018. Landbridge sought interest from local contractors and suppliers and worked with the NT Industry and Capability Network (NTICN) to award the contract for works.

Darwin-based McMahon Services Australia NT was awarded the first contract for the construction of the hotel in December 2018.

The first stage of hotel construction began in May 2019, with temporary fencing in place around the site, the widening of Anchorage Court, junction works on Kitchener Drive and the commencement of construction on the sea wall.

The sea wall will protect the development from storm surge and includes the fully accessible foreshore public pathway along the complete length of the site, as well as diversion and relocation of site services and drainage.

The hotel will have more than 200 rooms, world-class conferencing facilities, a rooftop pool and bar and a Skywalk bridge link. Once opened, the Skywalk will complete the connectivity between the Waterfront Precinct and the Darwin CBD.

Once open, the hotel will help position Darwin as a leading business and tourist destination in northern Australia.

Richard Crawford, Senior Director of Hotel Development for Marriott International (which owns the Westin hotel brand) said, ‘We are excited to see the Westin site hoarding in place, as a signal of our commitment to introduce this much-loved, first-class global brand to the city of Darwin. We are looking forward to the hotel doors opening and are certain that the property will set a new benchmark in hospitality excellence, benefiting

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locals and attracting new visitors to the Top End from far and wide.’

In 2018–19, Landbridge continued to undertake consultation sessions with stakeholders through public session briefings, discussions with businesses and the Darwin Waterfront Corporation, and an information session with Waterfront residents. Landbridge will continue consultation and engagement as the project progresses.

Commercial retailers

In 2018–19, the Darwin Waterfront had 26 retailers, made up of 12 restaurants/food outlets and 14 shops/offices.

New restaurant: Snapper Rocks

David and Kellie Robinson opened the Waterfront Precinct’s newest restaurant in March 2019.

Snapper Rocks serves up modern Australian fare with a sharp focus on Territory produce, especially seafood.

David said the ‘beachy bar’ theme for the new restaurant was driven by the precinct itself.

‘A couple of years ago, Kellie and I were standing out the front of the vacant building looking across the lawns to the ocean, and we could both imagine it—what the food would be, what drinks we’d serve, what the fit out would be’, he said.

‘It was very much a case of that site telling us exactly what the restaurant should be. We’ve got that beachside culture here, and it’s something we thought we were lacking in Darwin—venues that celebrate not just the beach but the healthy lifestyle that goes along with it.’

Snapper Rocks is about showcasing local produce, using everything fresh with minimal intervention and highlighting the flavours of the Top End. David said the signature dishes are the simple ones.

Image courtesy of Resident Magazine

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‘Like the whole charcoal snapper, which is cooked in a charcoal oven we ordered from Spain. Or the one that’s really surprised us is the salt and pepper crocodile, which is miso-marinated, giving it that Asian influence. It’s delicious, and the feedback we get is incredible. From customers who tell us they’d never normally eat crocodile.’

David said the support and feedback from both suppliers and customers since the opening has been terrific.

‘Our suppliers have been on board from the start, from local seafood to local beef and the fruit and veg we can source locally—it’s all been terrific’, he said.

‘Our customers have supported the restaurant’s concept too—they’re excited about what we’re doing. They love experiencing the food the Northern Territory has to offer, and they want it done well.’

The restaurant’s team of 34 is headed up in the kitchen by UK executive chef James Fiske, who has 20 years’ experience cooking in Michelin-star restaurants and two Chefs Hats in Australia.

The bar offers a collection of 100 Australian spirits (and 150 spirits from elsewhere) plus a wine list that’s 100 per cent Australian. ‘The feedback has been excellent on that’, David said. ‘We have amazing Australian wine, and we don’t think we need to be sourcing much at all from overseas.’

David and Kellie, who also own the Hot Tamale Mexican restaurant, have been part of the Darwin Waterfront Precinct since it opened in 2009.

‘We’re really passionate about the Waterfront area’, he said. ‘We’ve loved raising our family down there; our kids have practically grown up in our venues. For me, it’s just a really beautiful, family friendly area.’

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David said the Darwin Waterfront Corporation has been a fantastic support for the new business. ‘They’re great to work with and very supportive of businesses’, he said. ‘They try to get rid of red tape and make things easy for retailers. I think we’ve all got a really good relationship down here, between businesses and the Waterfront Corporation. I’m very happy being down there.’

Stokes Hill Wharf

Holidays of Australia – voucher scheme

In 2018–19, Holidays of Australia, in collaboration with the Darwin Waterfront Corporation, launched a Stokes Hill Wharf food voucher scheme for its clients.

When clients book a tour with Holidays of Australia, they are given a voucher to buy lunch or dinner at the wharf to the value of $20.

Participating Stokes Hill Wharf businesses (in the Port and Starboard arcades) keep the voucher (no change

is given to the customer when they order) and redeem payment from the Darwin Waterfront Corporation after each visit.

The first vouchers were redeemed at the wharf in November 2018.

At 30 June 2019, the initiative attracted an extra 848 patrons to Stokes Hill Wharf for lunch or dinner.

Royal Flying Doctor Service Tourist Facility

The Royal Flying Doctor Service (RFDS) Tourist Facility celebrated a successful third year of trade during 2018–19.

‘Since opening on 26 July 2016, we have had more than 126 700 visitors through the doors’, said Samantha Bennett, manager of the facility.

‘Our visitors include holidaymakers, students and teachers, defence personnel, corporates and function/event participants, and the numbers of visitors are increasing year on year.’

The RFDS Tourist Facility partnered with like-minded tourism operators to

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Image courtesy of JH Photos DRW

jointly promote experiences and share the benefits, particularly with those at the Waterfront Precinct. Samantha said around 16 per cent of the facility’s visitation can be credited to these partnerships.

The facility introduced a number of new products in 2018–19.

The first was a new touchscreen introduction system that allows visitors to watch two interactive stories—the history of the aircraft used over the many years and the women of the RFDS.

The second is new ‘Learning with Fun’ Touch Tables, which are card-matching puzzles and a digital colour image that people can email home to print.

Another virtual reality (VR) experience—’Flying with the Doctor’—was also added to the facility’s existing VR product portfolio. It gives visitors a real-life experience as they travel in the plane, watching and listening as doctors, nurses and pilots provide life-saving services to residents of the outback.

Samantha said the new products and experiences were an outstanding success with RFDS visitors during the year.

Leasing

The Darwin Waterfront Corporation is responsible for the management of Stokes Hill Wharf on behalf of the Northern Territory Government under a head lease arrangement.

Since the management of Stokes Hill Wharf was transferred from the NT Government to the Darwin Waterfront Corporation in 2015, we have been working to secure new leases with all tenants as the leases expire.

The corporation now has long-term leases with most Stokes Hill Wharf businesses, including the Royal Flying Doctor Service, Crustaceans restaurant, Darwin Harbour Cruises, Fusion on the Wharf, Portside Char Grill, Red Dragon, Kim’s Fish and Chips, Wild Burger, Siam Thai and the Takeaway Liquor Bar.

We also have long-term berthing agreements in place with all harbour cruise operators at Stokes Hill Wharf.

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Precinct management and infrastructure

Roads and car parks stats

The corporation manages and maintains the public roads and car parks at the Darwin Waterfront Precinct, including traffic control, street cleaning, landscaping and street lighting.

The roads in the precinct include Stokes Hill Road, Mavie Street, Kitchener Drive, Hughes Avenue, Jervois Road and Anchorage Court.

Two full-time rangers are employed to assist in parking and street management, security and by-law administration.

In April 2019, the Darwin Waterfront Corporation introduced two smartphone parking apps to make street parking more convenient and save customers time and money.

There is ample car parking capacity at the precinct to accommodate existing visitation and anticipated growth of the new luxury hotel, with more than 1000 car parking bays available across multiple locations:

On-street

• Kitchener Drive has 33 car parking bays and 14 free motorcycle bays.

• Anchorage Court has 72 car parking bays.

Off-street

• Jervois Road has 114 car parking bays.

• Darwin Convention Centre rear has 70 car parking bays and 4 motor bike bays.

• Darwin Convention Centre basement has 227 car parking bays (and is managed by the Convention Centre).

• Stokes Hill Wharf has 149 car parking bays.

• Stokes Hill Road has 93 car parking bays.

• Kitchener Drive multi-storey car park has 501 car parking bays (with 365 available to the public).

The majority of on-street and all off-street car parks operate with ‘pay and display’ parking meters that accept both credit cards and coin.

The Kitchener Drive multi-storey car park is boom-gated and operates via modern number plate recognition technology.

During 2018–19, there were 77 675 parking meter transactions, 2077 PayStay sessions and 181 EasyPark sessions for a total of 79 933 transactions—2258 more than in 2017–18.

There was a total of 230 204 users of the Kitchener Drive multi-storey car park in 2018–19: an increase of 79 095 on the prior year.

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In February 2019, the corporation offered $5 all-day parking for NT Government employees for every business day. As of 30 June 2019, 62 parking passes were sold to NT Government employees. This new initiative contributed to some of the increased transactions in the multi-storey car park.

Smartphone parking apps (EasyPark and PayStay)

The two smartphone parking apps introduced are PayStay (also available in the Darwin CBD) and EasyPark, which are both used in other jurisdictions in Australia and overseas. Customers can choose whichever app they prefer.

‘Paying for parking via the apps is both quick and simple’, said Samuel Burke, General Manager of the Darwin Waterfront Corporation.

‘Once parked, users enter the parking area code (shown on parking signs and meters) or select it from the map in the app they are using. They then enter their registration number and start parking.’

The apps send users notifications before their parking time is up, and they can choose to extend their session (if the parking policy allows). When they leave the area, users can click ‘stop parking’ on the app and only pay for the time actually used.

All parking meters still accept credit card and cash/coin payments.

Three-hour parking limit on Stokes Hill Wharf

From 1 May 2019, a three-hour parking limit from 4pm to 8pm was introduced on Stokes Hill Wharf’s public car park for the 2019 dry season.

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The new arrangements were introduced to improve accessibility at the wharf after ongoing feedback from stakeholders about the impact a lack of parking had on dinner trade.

Patrons or staff who need to park for longer periods in the evening are encouraged to park on Stokes Hill Road, which is free from 4pm. It is also serviced by a free Waterfront shuttle that transports people to the wharf from 4pm to 9.15pm daily.

The corporation will review the three-hour parking arrangements at the end of the dry season and seek stakeholder feedback.

Darwin Waterfront charges clean transport future

Free Tesla vehicle charging stations were installed in the Kitchener Drive multi-storey car park in June 2019, adding the Darwin Waterfront to the international Tesla Destination charging network.

The new charging stations allow Tesla owners in Darwin to easily charge their vehicles when they’re not charging at home.

‘Early adoption of technology links with the ‘Enabling Smarter Communities’ direction in the NT Government’s Digital Territory Strategy’, said Paul Kirby, Local Member for Port Darwin.

‘This is an excellent example of how a government organisation has harnessed smart city technology and is supporting a clean transport solution.

‘Technological changes to public assets such as this will transform the way we live and provide an additional resource to support owners of electronic vehicles.

‘As electric vehicles become more accessible, the availability of charging stations will improve services for owners’, he said.

Contractors

The Darwin Waterfront Corporation engages a number of contractors for services throughout the precinct:

• Regional Asset Maintenance Services Pty Ltd (RAMS) for maintenance and gardening services

• Surf Lifesaving NT for lifeguard, kiosk and first aid services

• Territory Protective Services for security services

• C&G Management for cleaning and management of Stokes Hill Wharf.

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TPS awarded precinct security contract

Territory Protective Services is a local security business founded by two young Territorians. In February 2019, TPS was awarded the Darwin Waterfront Corporation security contract until February 2021 after a public tender process.

TPS patrols the precinct 365 days a year, with extra patrols during peak periods, including events.

Lefteri (Terry) Papazoglou and his business partner, Rob Hissey, started Territory Protective Services in April 2017.

Terry, a born and bred Darwinian, previously worked in IT and while studying at uni, picked up security work on the weekends to help pay for his study. His part-time security gig quickly became full time, and after 14 months, he and Rob launched Territory Protective Services.

The business has grown significantly from its small beginnings to having 95 employees on the books in 2018–19. Terry’s parents are also now part owners of the business and work with Terry and Rob each week. At the precinct,

TPS has 10 to 15 guards on rotation at the precinct week to week—24 hours a day on weekends and 15 hours a day during the week to cover peak times.

As well as the Waterfront Precinct, TPS has managed security for other major Darwin events including Greek Glenti for the last four years, the Italian Festival, the opening and closing ceremonies of the Arafura Games at the Waterfront in 2019, the Why Not dance festival for the last two years, and the Territory Taste Festival.

Terry said TPS has a terrific working relationship with the Waterfront Corporation.

‘The team is very flexible, very accommodating, and we’ve built up a great relationship over the years’, he said. ‘And we’re so enjoying the work we do for the precinct.

‘I used to specialise in security for nightclubs and pubs, but this is totally different to that one-dimensional scene. We do foot patrolling, and our work is often in customer service, especially at the events, where we work with lots of families and lost kids. All our guards are trained especially for this.’

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Terry said his staff love working at the Waterfront location. ‘Especially at night as the sun is setting, looking out at the water—it’s a lovely place to be. And it always looks a little bit different. It’s a terrific place to work.’

Pedestrian traffic and Wi-Fi use

Two pedestrian traffic counters are installed near the Kitchener Drive multi-storey car park/ATMs and outside the glass observation lifts on the Smith Street footbridge (Sky Bridge). These locations are the two primary entry points into the precinct.

According to the counters, 876 919 people entered the precinct by those two locations during 2018–19, which is 59 842 more people than in the previous financial year.

These figures are estimates because one of the counters was damaged during Cyclone Marcus in March 2018. Average figures were imputed from March to July 2018 while the counter was not in operation, which forms a small part of the 2018–19 reporting period.

The NT Government provides free Wi-Fi in some parts of the precinct. During 2018–19, patrons had 65 836 Wi-Fi sessions, with an average time per session of 25 minutes and 5 seconds.

Wi-Fi locations are at the Waterfront playground, with plenty of shaded seating provided, and the Stokes Hill Wharf alfresco dining area. To access it, patrons select Darwin Waterfront Free Wi-Fi on their smartphones, answer three brief questions and nominate if they would like to receive information about a Territory holiday from Tourism NT.

The corporation experiences ‘spikes’ in Wi-Fi usage on cruise ship arrival days.

Improving amenity

Water main upgrades at Stokes Hill Wharf

In 2018–19, works commenced to upgrade the water main at Stokes Hill Wharf.

The upgrade was done to improve reliability and quality of the potable water supply for both vessels and wharf traders. The new main is stainless steel and has improved valving to allow for better management of water supply for day-to-day operations at the wharf. The upgrade also improved below-deck access to the water main, which was previously difficult and made repairs challenging. The works will also include removing redundant water infrastructure.

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Place-making

Wave Lagoon

In 2018–19, the precinct’s ‘coolest attraction’, the Wave Lagoon, attracted 103 643 people.

The busiest month was July 2018, with 19 326 people visiting in that month: a five per cent increase compared to the busiest month in the previous financial year (July 2017).

Weekends continued to be the busiest days.

The lifeguard-patrolled Wave Lagoon is 2.6 metres at its deepest point and also has a wading pool, which is perfect for young children, making the Wave Lagoon a complete family attraction.

Tubes and boogie boards are provided to help visitors tackle the waves, which roll in for 20 minutes every half hour. Other visitors choose more leisurely activities like relaxing on the banana lounges, under beach umbrellas and on the shady lawns.

Wave Lagoon entry fees have been kept low to allow an affordable outing for everyone to enjoy. All-day entry for a family (two adults and three children) is $18, and single entry is $5 for children and seniors and $7 for adults.

The Wave Lagoon is open from 10am until 6pm seven days a week, including public holidays other than Christmas Day.

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In mid-June 2019, the Wave Lagoon experienced significant tile failures. The corporation has commenced working on options for a full refurbishment and re-line. Details on options and timelines for future works will be released in 2019–20.

Recreation Lagoon

The man-made beach and saltwater Recreation Lagoon is free to use, making it popular with visitors and locals who love a leisurely swim or just a dip to cool off ‘down at the beach’. The outer area of the lagoon is used by avid swimmers and swimming clubs, which often host competitions, events and classes. A total 292 208 patrons were observed in and around the lagoon during the year, a 60 per cent increase compared to 2017–18.

A sea wall separates the lagoon from the adjacent harbour, creating the man-made lagoon, which is continuously replenished with fresh sea water. The water is filtered through fine mesh screens on the pumps off Stokes Hill Wharf. This helps maintain a high water quality that is suitable for swimming and capable of sustaining marine flora and fauna.

In 2018–19, the sand at the lagoon was replenished as part of the twice-annual beach maintenance. Some 250 cubic

metres of new sand was added to improve the beach area.

As part of the Arafura Games beach volleyball event held in May 2019, an extra 500 cubic metres of sand was installed in the Recreation Lagoon to create new beach areas and a full-size beach volleyball court was installed.

The new beach areas and volleyball court have remained after the event, creating a free outdoor activity for patrons to enjoy. The court is free to use seven days a week, with a volleyball available from the lifeguards on duty, who patrol the lagoon daily between 9am and 6pm.

Big Buoy Water Park

The Big Buoy Water Park, operated by D-Town Events, in the Recreation Lagoon attracted 23 817 people in 2018–19. In addition to this, some 2800 people attended exclusive events booked at the water park during the year.

‘This represents an outstanding increase in park attendance in comparison to the previous year, and when drilling into the sales data, it is exciting to see that every operational day throughout the 2018–19 season recorded larger numbers than the same days in 2017–18’, said the park’s owner-operator, Jarrod Berrington.

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‘June, July and August were our strongest months, with October, December and January not far behind. Sunday continued to be our strongest-performing day followed closely by Saturday, Wednesday and Thursday.

‘We reconfigured the park throughout the year to provide a different aspect and course for customers. We have an additional launcher that we may install prior to the October 2019 school holidays, and due to demand, we increased our fleet of paddle boards and kayaks.

‘The increase in numbers is directly related to the popularity of the activity and the recommendations to return by those who have already attended’, he said.

‘There was a considerable increase in birthday party bookings and a trend from larger groups to use the water park for challenge-based activity after

the creation of the Ocean Warrior Challenge that we hosted for the Royal Australian Navy and the 27 nations attending Exercise Kakadu.

‘We also noticed that there were more customers during days when school holiday events were held at the Darwin Waterfront.’

New beach volleyball court at the Recreation Lagoon

A new beach area with full-size beach volleyball court was created at the Recreation Lagoon for the Arafura Games in 2019. Once the games finished, the corporation kept the court for people to use during the dry season.

‘The facility is free to use seven days a week, with a volleyball available from the lifeguards on duty, or players can bring their own ball’, said Samuel Burke, General Manager of the Darwin Waterfront Corporation.

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Kirby Smith, a 28-year old Darwin local, is one of many people who made good use of the new beach volleyball court.

‘We use it all the time—it’s brilliant,’ said Kirby, whose friend has an apartment at the Waterfront. ‘We’d get down there on a Sunday and spend the whole afternoon playing until it got dark, then go for a sangria or two at Hot Tamale afterwards. It was brilliant.’

Kirby said one of the best things about the court was how it brought strangers together for some healthy outdoor activity.

‘We were down there playing one afternoon, and a group of international backpackers showed up and asked if they could play with us’, she said. ‘It ended up being this big bunch of people who’d meet up at 3pm every Sunday and play together. We didn’t know each other before; playing on that court was what brought us all together.

‘I think that’s been the best thing about it—the number of people who stop to watch and who are eager to have a go. We ended up with this natural rotational system with up to a dozen people subbing in and out. It was an

amazing bit of community spirit, really. People would hang around for hours and just have a great time.’

Kirby said the atmosphere at the Recreation Lagoon on those weekends was wonderful. ‘It’s so energetic down there, with people outdoors enjoying the weather, and with the water and the beach—it’s just this big buzz of energy and got people doing fun physical activity, which is always positive.

‘I loved being part of it. Everyone could be involved. You didn’t have to be an elite sportsperson; you could just get in there and have a crack. And people did.’

Kirby said she and her friends are very active, and sometimes driving to Litchfield is just a little too far away. ‘This amazing facility so close by gave us another option to do something active during the day. It was fantastic.’

As well as playing beach volleyball at the Waterfront, Kirby plays netball for the Waratahs as well as tennis, basketball, golf and hockey. She moved up from country Victoria in July 2018 and works in administration at a sports physiotherapy clinic.

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Events and visitation

The precinct attracted an estimated 1.2 million visitors in 2018–19. A year-round events program is essential to maintain and grow visitor numbers. The corporation’s attentive planning and management of costs is essential to ensure the precinct is activated to give visitors positive experiences to keep them coming back.

Year No. of events Patronage

2018–19 249 97 532

2017–18 276 80 703

2016–17 256 72 579

2015–16 245 69 834

2014–15 243 59 816

2013–14 190 57 832

2012–13 170 48 680

2011–12 92 42 901

2010–11 52 30 821

2009–10 Not recorded 11 000

Significant events in 2018–19 were:

1 July 2018: Territory Day celebrations (2000 attendees)

14 July 2018: Health and Wellness Festival (1500 attendees)

4 August 2018: Pesona Indonesia (3000 attendees)

25 August 2018: Free movie – Despicable Me 3 (1000 attendees)

2 September 2018: Exercise Kakadu (1500 attendees)

23 September 2018: Splashfest (2000 attendees)

17 October 2018: Children’s Week (1000 attendees)

December 2018: Wishes to Santa (4500 attendees)

December 2018: Christmas lights at the Waterfront (5000 attendees)

31 December 2018: New Year’s Eve celebration (7000 attendees)

26 January 2019: Australia Day Fun Run (3500 attendees)

20 April 2019: Easter celebrations (3500 attendees)

26 April 2019: Arafura Games opening celebration (5000 attendees)

27 April 2019: Thai Grand Festival (5000 attendees)

1 May 2019: Arafura Games beach volleyball (5950 attendees)

4 May 2019: Arafura Games closing celebration (4000 attendees)

12 May 2019: Mother’s Day Saltwater Craft Fair (3500 attendees)

25 May 2019: Harmony Soiree (4000 attendees)

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28 June 2019: Fusion Blast preview night (3000 attendees)

Attendees are estimated based on traffic counter data, road traffic data, registrations (where applicable) and visual attendance.

Regular events at the Waterfront during 2018–19 included:

• 29 free yoga classes were held in the parklands attracting 1165 participants.

• 45 aqua Zumba/fitness classes were held at the Wave Lagoon on Sundays with 502 participants.

• Sundays ‘Live at the Lagoon’ from May to October, attracting 2200 patrons.

• Live music on the wharf on Wednesdays and Sundays from May to September, attracting 3100 patrons.

• Free monthly ‘movie under the stars’ from June to October, attracting 3700 participants.

Fundamental to a successful events program is engaging and securing the support of retail and commercial businesses in the precinct.

Some 70 per cent of events are managed by the corporation and co-funded in partnership between the Toga Group, retailers and the Darwin Waterfront Corporation, including movie nights, Easter celebrations, Sundays Live at the Lagoon, Christmas lights and New Year’s Eve celebrations.

The remaining events are hosted by third parties but supported by the Darwin Waterfront Corporation and Toga Group. In-kind support is often provided to third-party events including site hire, shade structures, event support, toilets, security, power

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and water. However, the majority of investments from these events are by third parties.

Examples of third-party events held in 2018–19:

Cultural festivals: Thai Grand Festival, Pesona Indonesia and Harmony Soiree

Sporting events: Arafura Games opening celebration, Arafura Games beach volleyball, Arafura Games closing celebration, Nippers training, Open Water Swim Series and triathlons

Commercial ventures: Fusion Blast preview night and cruise ship markets

Community celebrations: Australia Day Fun Run, Pride Festival, Goyder Day celebrations

Family fun days: Royal Lifesaving’s Splashfest, Helping People Achieve Health and Wellness Festival, Tactile Art’s Mother’s Day Saltwater Craft Fair, Gran Fondo, triathlons, Territory Wildlife Park’s ‘Love your Locals’

Arts and culture events: Darwin International Film Festival screenings

Charities/not for profit events: Cancer Council’s Relay for Life, SIDS and Kids ‘Light the Lagoon’ and Variety NT’s Santa Fun Run

Special interest groups: National Motoring Heritage Day, National Gone Fishing Day and Exercise Kakadu.

The corporation also works closely with businesses to provide opportunities to use public spaces for one-off events. In 2018–19, businesses held these events in the parklands:

• The Precinct Tavern

– petting zoo (Mountain Goat Beer Day), 23 March 2019

– pony rides, 6 April 2019

– footy day, 2 June 2019

– Beer and BBQ Festival, 7 & 8 July 2018

– Compass Pools conference dinner for delegates, 25 July 2018

– Ku De Ta beer garden, 4 & 5 August 2018

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– Gran Fondo beer garden, 19 & 20 August 2018

– Chariots of Thunder sprint car display, 23 August 2018

– Property Congress luncheon, 14 September 2018

– Chill on the Lawns beer garden, 15 & 16 September 2018

– installation of a big screen in the public parklands for the AFL and NRL grand finals and State of Origin matches.

• Hot Tamale

– Los Cabos Beach Volleyball Beer Garden, April 2019

• Fiddler’s Green

– St Patrick’s Day celebrations, 17 March 2019

• Wharf One Food & Wine

– Bupa Boost X Incentive Celebration Dinner on the lower deck, 27 August 2018

Arafura Games made a splash at the Waterfront

Both the opening and closing celebrations of the Arafura Games, the Northern Territory’s international multi sport event, were held at the Darwin Waterfront Precinct for the first time in 2019.

Featuring some of the Territory’s top musicians, dancers, and community and cultural groups, the opening celebration was staged at the Waterfront on 26 April, and the closing celebration wrapped up the Games on 4 May 2019.

Meg Knuckey, Head of Operations for the Arafura Games, said choosing the

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Waterfront to host the ceremonies was the right decision, with around 5500 attending the opening celebration and 4500 at the closing celebration.

‘We were very happy’, she said. ‘Attendance figures were amazing, considering it was an unknown for us in a public space like that—we could have ended up with 1000 or 6000.

‘Overall, the Waterfront venue was perfect for what we wanted to do this time around. It was central and easily accessible, and the facilities the Waterfront offered the Games—from seating to eating to playing—it was all there.’

Meg said the feedback about the location from volunteers, athletes, spectators and businesses was positive. ‘They loved the buzzing hive of activity the Waterfront venue created’, she said. ‘It was a very open and welcoming space, and being able to create that special Darwin feel for international visitors in that iconic Darwin location was excellent.’

As part of the Games, a full-size beach volleyball court was created at the precinct’s Recreation Lagoon, which Meg said was a fantastic success.

‘Being a beach sport, having it played on the beach was a big win’, she said. ‘The athletes loved the location and the uniqueness of what we created, and spectators loved coming to the beautiful Waterfront location to view international competition.’

Meg said the two agencies worked together well to make the volleyball event a success. ‘The planning and logistics required to make those courts happen was significant, for both our Arafura Games team and the Waterfront team, so to be able to tick that off so successfully was very rewarding.

‘We couldn’t have done any of our activations or events down there without the Waterfront Corporation, and we built great relationships with the team, who were also intent on using that space to the best of its ability. I can’t speak highly enough of the corporation as a partner.’

A new initiative in the 2019 edition of the Arafura Games was the Purple Patch Community Hubs held at two event locations. The hubs gave people an alternative to the sporting competition, offering food, shade, free entertainment and child-friendly activations plus a place to relax for all the family.

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‘We wanted to bring people down to watch our sports as much as possible, and one of our themes to do that was creating the Purple Patches at both the Waterfront and Marrara’, said Meg. ‘They offered a variety of activities, including face painting, Fairy Jill, live music and arts and crafts.

‘The Waterfront hub was fantastic. We had good attendance most evenings, and the weekend saw family and friends gather in numbers.

‘Overall, NT Major Events Company was thrilled with the Waterfront component of the Arafura Games—the opening and closing celebrations, the Purple Patch hub and the beach volleyball. To see so many people come into the CBD and check the Games out was incredible.’

Waterfront skies ignited for the 40th Territory Day anniversary

Darwin Waterfront’s first Territory Day celebrations were held on Sunday 1 July 2018 to mark the 40th anniversary of self-government.

More than 2000 people attended the inaugural event, which was held from 5 to 8pm.

The event showcased live music by talented Territorians, roving children’s entertainment and a spectacular pyro musical fireworks finale display from the sea wall.

Eighteen-year-old born and bred Territorian singer songwriter Jordan Ravi performed, along with other locals Will Hatch and Max Fredericks, who spruiks a repertoire spanning six decades.

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The iconic Darwin Convention Centre’s exterior was lit in ochre and white, giving the event a glorious Territory-themed backdrop.

Surrounding restaurants provided front-row seats for the fireworks display as well as takeaway options that patrons enjoyed on the lawns.

Christmas wishes to Santa

The Darwin Waterfront Corporation introduced a new Christmas promotion in December 2018: ‘Wishes to Santa at the Waterfront’.

The promotion gave three lucky children the opportunity to win their ‘Christmas wish list’ valued at up to $1000 each.

For a chance to win, entrants had to spend $20 or more at any Waterfront business (including Stokes Hill Wharf) during the promotion period and collect a ‘Wishes to Santa at the Waterfront’ entry form. Entrants then submitted their entry to Santa, who visited the precinct every evening from 7 to 14 December, or via Santa’s mailbox by 16 December 2018.

We received 269 entries in the 16 days of the competition, and three winners were announced on 23 December 2018. The prize winners received their Christmas gift wishes, which included:

• Winner 1 (age 3) – Elsa (Frozen) doll, outdoor play swing set, Frozen

Lego, Baby Born plus pram, Frozen Elsa dress and shoes and books.

• Winner 2 (age 9) – a camera, a laptop (plus anti-virus and Microsoft Office suite), a netball hoop, surf clothes and an iPod.

• Winner 3 (age 11) – a mountain bike, air pods, beach towel, a ‘Head’ squash racquet and Ultimate Banking Monopoly.

The new Christmas promotion supported the annual Christmas lights display, which was reinvigorated in December 2018 with a new ‘Christmas Cove’ incorporating a miniature tinsel town with a four-metre high gingerbread house, Santa’s sleigh and reindeer, a forest of seven giant Christmas trees and large Christmas icons with stars and gifts.

Marketing successes

In 2018–19, the Darwin Waterfront Corporation advertised events and initiatives in local outlets including Off the Leash (magazine and website), The Scoop (Channel 7’s Darwin lifestyle segments), Mix 104.9 (radio), Hot 100 (radio), Territory FM, NT News, Tourism Top End’s Destination Darwin and Top End Holiday Guide, Darwin Waterfront flyer, website and precinct poster boards.

In June 2018, a four-week Darwin Waterfront television campaign aired across all local TV stations as well as Event Cinemas in Darwin and

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Palmerston. The campaign included three 30-second TV advertisements focussing on our marketing themes of ’enjoy’ (parklands and lagoons), ’experience’ (events and activations) and ‘dine’ (restaurants, cafes and bars).

The Darwin Waterfront continued its high social media following in 2018–19, with 20 612 likes on Facebook and more than 4500 followers on Instagram at year end.

Enhancing public spaces

In April 2019, the parklands were beautified with new fairy lights wrapped around four large raintrees either side of the playground.

The fairy lights were used as an alternative to flood lights for extra lighting to the playground at night.

The lights enhance the parklands and complement the existing fairy lights in the palm grove area (outside Chow restaurant).

Local audio visual company Majestix Media did the work, which included installing 1100 metres of fairy lights, with a total of 11 000 lights.

Cruise ship market

The cruise ship market is an important contributor to the NT economy, with 73 cruise ship visits bringing an estimated total of 49 550 passengers to Darwin in 2018–19.

Key highlights in 2018–19 included:

• The largest cruise ship to visit in the year was ‘Explorer of the Seas’, with a passenger capacity of 4029.

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• The ‘Majestic Princess’ visited twice, with 3560 passengers on each occasion.

• Coral Expeditions’ brand new ‘Coral Adventurer’ ship arrived in Darwin in May 2019, home porting in Darwin for the season.

• Ponant’s ‘Le Laperouse’ cruised between Darwin and Broome in 2019.

The major beneficiaries of cruise ship visits and passenger spending are the Darwin CBD and Waterfront Precinct, as well as local tour operators.

While Fort Hill Wharf itself is not managed by the corporation, it is imperative that the corporation is actively involved in and contributes to the cruise ship market. This is best achieved by

working with stakeholders including Tourism NT, Darwin Port, the City of Darwin, Darwin City Waterfront Retailers Association, Tourism Top End, tourism operators and retailers in the CBD.

New markets for Darwin cruise ship passengers

Jo Woodrow ran an entertainment and markets business in Darwin and wanted to try something new. She had an idea to offer more activities for cruise ship passengers arriving in Darwin and approached the Darwin Waterfront Corporation about it in 2018.

‘I wanted to try running a cruise ship market to give the passengers something extra to do when they come to Darwin’, Jo said. ‘My two options for

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Image courtesy of Reannon Phillips Photography

a location were up in the Darwin Mall and the Waterfront Precinct itself, and being right by the cruise ship terminal, the precinct was the natural choice to start with.’

Jo said the first six cruise ship markets, held in March and April in 2019, were a success and very popular with the cruise ship passengers docking in Darwin.

‘The passengers used to go straight from the cruise ship terminal onto a bus and into the city, but with the markets, many now walk over the walkway through the precinct and up to the markets first’, Jo explained.

Jo wanted to establish a handmade, homemade, high-end product offering for the cruise ship markets. ‘Things like silverware, homewares, jewellery, handmade baby gifts and clothes, handmade soap, hats and clothing, packaged foods like beef jerky and spices, paintings by local artists and Aboriginal products’, she said.

The passengers’ feedback on the new markets was excellent. ‘We asked them what they thought, and they were all very happy’, Jo said. ‘I asked some passengers what was lacking, and they couldn’t find anything negative to say. It was wonderful.’

As well as the market stalls, which are run independently by other stall holders who Jo coordinates, there were sometimes performers to entertain the passengers. ‘We’re also talking to a snake and animal handler for future markets, which I’m very excited about’, Jo said.

The precinct is the ideal location for the markets, Jo explained. ‘Being at the Waterfront Precinct, with the restaurants and cafes, the ice creams, the scenery around us—it was the perfect location to choose. It’s just so breezy and beautiful.

‘And the team at the Darwin Waterfront Corporation have made everything really easy—they’ve been really accommodating’, she said. ‘Every time I come to them with a request, they try to help. Power and access and bump in—it’s all been done really well.’

Jo is originally from Portugal and has been in the NT for seven years. She also runs a kids’ market for young entrepreneurs.

Long-term future ferry terminal planning

In June 2019, the Northern Territory Government, through the Department of Infrastructure, Planning and Logistics, announced the preferred sites for possible future ferry terminal developments over a 50-year horizon.

The announcement was made after an extensive study into 27 potential sites for future terminals around Darwin Harbour.

The preferred sites are a combination of existing and new locations and were selected after a comprehensive planning study that included consultation with industry stakeholders and the public.

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Maritime specialists Mott MacDonald led the planning study and assessed each site against a range of criteria from environmental impact to population trigger points for future demand for ferry infrastructure and services.

The four priority sites are:

• Mandorah Jetty – existing site

• Cullen Bay – existing site

• Elizabeth River – new site

• Darwin Waterfront – Fort Hill Wharf – new site.

Timing for development of the new sites will depend on demand generated by tourism, economic and population growth and integration with land use and transport networks.

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Residents

There are six residential buildings in the precinct with a total of 276 apartments. These apartments are either owner-occupied, tenanted or available as short-stay accommodation.

Nicole Festing grew up in Humpty Doo in rural Darwin. After moving away for uni for a while, she came back to Darwin and moved into the city. She relocated to her current Waterfront Precinct apartment in November 2018.

‘It came time to move out by myself, and one of my main considerations in finding a place to rent was that I could take my dog with me’, said Nicole, 27.

‘That’s one of the reasons I’m so happy at the Waterfront: they allow pets under 10 kilograms. So aside from it being so pretty, that made it a perfect choice for me.’

Nicole’s ground-floor apartment is on the park side of the precinct and has a courtyard for her pooch. ‘He’s very happy

Stakeholder and community engagement

Forums

The corporation convenes forums to gather the views and ideas of the precinct’s stakeholders and the wider community to inform place-making plans, development and promotion. Stakeholder representation includes Stokes Hill Wharf, businesses and retailers, hotels, the Member for Port Darwin, Charles Darwin University, residents, body corporates, the Darwin Convention Centre, the Toga Group and property owners.

Representatives met twice during the year to collectively discuss precinct matters, including:

• infrastructure works, repairs and improvements

• security and antisocial behaviour

• roads and parking

• luxury hotel development

• water theme park

• Wave Lagoon refurbishments

• risk and safety provisions

• stakeholder updates

• events.

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there’, she said. ‘My sister lives in the rural area, so he regularly has his ‘bush runs’ out there, but most of the time he’s an inside dog. So the Waterfront lifestyle suits us both perfectly.’

As well as being pet friendly, Nicole was also looking for a place close to work, ideally that she could walk to.

‘Living in the city before here, I got used to not driving to work, and I really wanted to be able to keep that up’, she said. ‘Growing up in Humpty Doo, we always had that long commute into town every day. One of the best things about living here is the walkability factor—even after five years, the novelty hasn’t worn off!’

Nicole said even with the activity at the Waterfront, her home is quiet and peaceful, and the body corporate looks after the precinct and its gardens well. ‘And it’s great being so close to everything at the same time; I love walking out to the wharf, to the beach area and to the restaurants—everything is so close. I walk around the precinct once or twice a day with my dog. It’s such a great place to live.’

Nicole particularly loves the precinct’s atmosphere. ‘On Sunday afternoons, they have live music in the dry season, and everyone comes down and sits in the shade by the water listening, it’s a great feeling.

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‘Part of the Arafura Games were held there this year too, and that was terrific’, she said. ‘It was awesome that they left the beach volleyball court here for people to use. Every time I go down there in the afternoons, it’s being used by plenty of people. It creates a lovely atmosphere.’

Community

Darwin Waterfront annual membership

Darwin Waterfront annual membership is a loyalty program for regular patrons with the following benefits:

• a minimum of 10 per cent discount daily until 6pm at more than 30 Waterfront businesses, including restaurants, food and beverage outlets, retail stores, fitness programs, hotels, harbour cruises, tourism attractions and touring options

• free and unlimited access to the Wave Lagoon

• an additional hour’s free parking (total of three hours instead of two) in the Kitchener Drive multi-storey car park.

The annual membership pass aims to encourage repeat visitation and deliver value to the local community.

Membership fees in 2018–19 remained at the introductory price of:

• family (two adults and three children): $125 per year

• adult: $50 per year

• child: $35 per year

• senior: $20 per year

• under three: free

The option of becoming a member is continuing to be popular, with more than 570 membership passes sold during 2018–19. The majority of the passes sold were adult memberships (43 per cent) and family memberships (42 per cent). The remaining 15 per cent were sold to seniors or children.

Participation and affiliations

The Darwin Waterfront Corporation works collaboratively with the Northern Territory Government through the Darwin City Deal initiatives. The corporation’s General Manager is a board member of the Activate Darwin project, which works to improve liveability, community safety and the perception of Darwin city.

In 2018–19, the corporation also maintained memberships and professional affiliations with Tourism Top End, the Australian Institute of Company Directors, International Cities and Town Centres and Place Leaders Association.

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Governance

The corporation is committed to best practice corporate governance, aiming to adhere to the highest levels of accountability, transparency and probity across all its activities.

Risk management

Public safety and security review

HATAMOTO Holdings Pty Ltd (HATAMOTO) was previously commissioned by the Darwin Waterfront Corporation to provide security risk management advice and to develop a risk management framework for the Darwin Waterfront Precinct.

In 2018–19, the full suite of reports from the HATAMOTO safety risk assessment were finalised, and the reports were published on 4 June 2019.

The reports include a crisis management plan, emergency management plan, security management plan and hostile vehicle mitigation addendum.

The next steps are developing an implementation strategy that addresses all the recommendations of the plans prioritising mitigation activities/works as part of establishing the framework.

This includes identifying skills gaps and staff training needs.

Lifesaving

Surf Life Saving NT manages the operation of the Wave Lagoon and Recreation Lagoon at Darwin Waterfront, including lifeguard services consistent with nationally accredited competencies for pool, inland open waters and beach lifeguards.

In 2018–19, Surf Life Saving NT executed 38 water rescues and administered first aid on 172 occasions. There were zero drownings or fatal injuries reported.

Surf Life Saving NT also assists with the management of the marine environment in the Recreation Lagoon, which included undertaking a monthly net drag, removal of 62 cassiopea jellyfish and conducting 52 spotlight tests for jellyfish throughout the year.

There were no sightings or stings from dangerous jellyfish (i.e. box jellyfish or Irukandji) in the Recreation Lagoon.

Lifeguards also provide a frontline service for the Waterfront and often respond to public enquiries. In 2018–19, Surf Life Saving NT responded to 7311 public enquiries at the lagoon.

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Information management

Our accountabilities under the Information Act include responsibilities for records management, freedom of information (FOI) and privacy.

Our General Manager is the decision maker in relation to FOI applications the corporation receives. The corporation received no requests for access to information in the reporting period.

We are committed to adhering to the information privacy principles and protecting the privacy of personal information we hold, ensuring we only collect information necessary for our functions, activities and services. No requests for access or corrections to personal information were received in the reporting period.

We understand our obligations to ensure an adequate record of activities is maintained in accordance with the record management principles under the Information Act and ensure appropriate record management systems and processes are in place.

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Looking ahead to 2019–20

Development and sustainable business growth

Darwin Convention Centre

In 2019–20, Darwin Convention Centre will welcome back some familiar events. The Bridgestone Solar Challenge is returning to the centre, as is the Australian Drilling Industry Association Conference. The centre is also looking forward to hosting the National Housing Conference, South East Asia Survey Congress, the Puliima Indigenous Languages and Technology Conference, the Indigenous Allied Health Australia National Conference and the Australian Indigenous Doctors Association Conference.

Property management and infrastructure services

Improved power supply at Stokes Hill Wharf

A new high-voltage (HV) feeder will replace the existing cable that runs between the Power and Water substation at Indo Pacific Marine and the substation on the wharf. The work will also include upgrades to the transformer room on the wharf to improve reliability and meet current standards. The existing cable is severely deteriorated. The works will also include removal of redundant HV infrastructure.

Improvements to food arcades and al fresco dining at Stokes Hill Wharf

The corporation is currently developing concepts for improvements to the food arcades at Stokes Hill Wharf to enhance the visitor experience.

The new works will incorporate a new deck shade structure to provide shade during the day. The corporation is also investigating options for the shade to be retractable so it can be retracted at night to allow for dining under the stars.

New closed-circuit television (CCTV) cameras

In June 2019, the corporation engaged Honeywell to provide additional CCTV cameras in Kitchener Drive to provide full coverage of the public domain designated vehicle entry point. The additional CCTV cameras will provide much needed vision of this high-impact area and will allow better management as part of hostile vehicle mitigation.

Place-making

Wave Lagoon refurbishments

The Wave Lagoon has experienced wall tile failures to varying degrees since construction concluded in 2008–09. In the 2018–19 year, rates of tile failures increased unexpectedly, and on several occasions, over 100 tiles were failing in a single day. The cause of the tile failures remains unclear; however, expert analysis indicates a combination of

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the contraction and expansion of the concrete walls of the Wave Lagoon with temperature changes and faulty adhesive. Failed tiles present a safety risk to Wave Lagoon users, so the facility has been closed for short periods to allow tile removal and risk mitigation.

The corporation is in discussions with aquatic facility designer and consultant Liquid Blu about a complete refurbishment of the Wave Lagoon. Discussions have centred on relining the Wave Pool; however, the corporation is considering a broader scope, including other improvements to the facility such as water play equipment for the wading pool. The new works will include a proposed new kiosk and amenities building.

Bruce Munro exhibition

NT Major Events Company will deliver the Bruce Munro: Tropical Light exhibition, which will be on display from 1 November 2019 to 30 April 2020.

Internationally acclaimed artist Bruce Munro will create eight Territory-inspired illuminated sculptures along a 2.5-kilometre trail around the Darwin Waterfront Precinct and Darwin CBD, attracting visitors during the tropical summer season. The collection of illuminated sculptures is connected by a self-guided path featuring works from six Darwin artists.

Bruce Munro, who became an Australian citizen in 1990, has always been inspired by Australia’s natural light and landscape. The outdoor exhibition

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Image courtesy of Louise Denton. Copyright NT Major Events Company.

reflects the artist’s personal history of visiting the Northern Territory.

Each piece is intended to inspire interest during the day and hold special significance when illuminated at night.

An initiative of the Northern Territory Government, Tropical Light is free to attend.

Darwin International Film Festival (DIFF) Water Screen

The grand finale and celebration of the Darwin International Film Festival’s tenth edition will see a brand new medium brought into the mix.

The 30-metre wide water-based screen will be set up and projected in the water at Darwin Waterfront’s Recreation Lagoon on the final weekend of the film festival from 20 to 22 September 2019.

‘This brand-new water screen show is sure to be a treat both for our beloved audience and for local creatives’, said Blandine Ruffo, Festival Manager of the Darwin International Film Festival.

‘DIFF is merely catching a wave where emerging talent and a strong demand for local stories have converged.

‘The water screen steps this up a notch in 2019, combining one of the city’s most prominent natural elements with the digital landscape.

‘The water screen will showcase a number of local and international films and animated art. While this is a new medium to the Darwin International Film Festival, we are making it every bit our own.’

Darwin Waterfront Corporation’s Events and Marketing Manager, Paola McCarthy, said, ‘We are proud to be partnering with Darwin

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International Film Festival for this never-before-seen event for Darwin. Innovative events like this allow our community to experience our public spaces in an exciting, unique and captivating way and create memories that will last a lifetime.’

Laservision is an Australian-owned company expert in using media to create incredible sensory experiences. It will bring the water screen to Darwin for the first time for DIFF 2019. This will be a custom-made show, celebrating the Northern Territory, including a beautiful tribute to Top End legend David Gulpilil.

‘The Darwin International Film Festival is a great opportunity for Laservision to share our water screen and projection technologies with Territorians for the first time’, said Shannon Brooks, CEO of Laservision. ‘We are excited to bring these stories to life for the community and festival attendees at the beautiful Darwin Waterfront Precinct.’

The addition of the water screen to the 2019 program is an extension of DIFF’s commitment to involving the local community, strengthening the NT film industry and enriching the screen culture in Darwin.

3X3 basketball debuts at the Darwin Waterfront

Australia’s first official semi-permanent FIBA 3X3 spec basketball court will make its debut at the Darwin Waterfront.

The new facility will open in August 2019 for 12 months and hold weekly events, national and international competitions and be free for public use most days.

The Darwin Waterfront will collaborate with CLB3X3’s Darwin team, who will manage the court and coordinate the calendar of events.

‘It has always been our vision to bring 3X3 basketball back to Darwin on a more regular basis since we hosted the massive Darwin leg of the CLB3X3 National Tour in 2016’, said Matt Hollard, founder of CLB3X3. ‘Three years later and all the hard work and dedication by our team has paid off. Driving that vision to become a reality has been very exciting and is a huge step for our brand.

‘The Darwin leg of the 2016 CLB3X3 national tour was one of the biggest, most successful locations for the tour, which was held in most capital cities and regional centres across the country. We had more than 120 competitors and hundreds of spectators attend the one-day event at the Waterfront.

‘Darwin has been a pioneer location for 3X3 basketball in Australia, and we’ve

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worked hard over the years to build our local relationships with businesses and the community to ensure our presence here is a success.

‘The new facility will bring national 3X3 events to the Darwin Waterfront and form part of the CLB3X3 Aussie Summer Series along with becoming the home to a newly established Darwin elite team, which will compete nationally and internationally.

‘We also have our sights set on international competitions, including attracting teams from countries such as PNG, the Philippines and Malaysia, with these discussions well underway.

‘While the court will bring competition from around the country and the globe, there is a strong focus on local development. CLB3X3 will have weekly 3X3 competitions for local Darwin

ballers right through to business personnel with our corporate cups and team-building sessions.

‘It would also continue to push Darwin locals to the top of the national federation rankings with increased FIBA points on offer, placing them in the qualification zone for selection to a national team and playing in a global event.’

The new facility is a welcome addition to the Darwin Waterfront, growing a diverse offering of activities.

‘It’s fantastic to see the Darwin Waterfront taking up these opportunities and providing yet another active and healthy activity for our local community’, the Local Member for Port Darwin, Paul Kirby, said.

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‘Outside of CLB competition, the court would be open for all to use on a casual basis and be completely accessible for the whole community.

‘The format is quick, with fast, 10-minute games, which means more people get a run, and it makes for a great spectator sport that is perfect for the whole family to enjoy.

‘The court will be located on the lawns between the Wave Lagoon kiosk and the Wave Lagoon, activating this otherwise underutilised area.’

New harbour cruise ticketing offices on the wharf

New ticketing offices for local harbour cruise operators Darwin Harbour Cruises, Sea Darwin and Cape Adieu will open in early 2019–20 on Stokes Hill Wharf, with the majority of works completed in 2018–19.

The operators provide a range of services, from sunset cruises to charters to diving and eco tours.

This is the first onsite ticketing office for Sea Darwin and Cape Adieu.

‘In the past, we have relied on our customers planning ahead and booking via the phone, website or booking agent’, said Jim Smith from Sea Darwin.

‘The new office allows us to have a physical presence and talk face-to-face with visitors on the wharf. As the only operator offering daytime cruises as well as sunset and charters year-round,

this will be a great new service.

‘We will now be able to take bookings on the spot from people who visit the wharf and those that make the spur-of-the-moment decision to experience our beautiful harbour from the water.

‘While we’ve operated from the wharf for 11 years, we’re excited to officially become part of the ‘top deck’ of the wharf and work in with existing businesses, including the restaurants and Royal Flying Doctor Service Bombing of Darwin Tourism Facility.

‘Stokes Hill Wharf is a truly iconic location and one we’re proud to be part of.’

Stokes Hill Wharf is managed by the Darwin Waterfront Corporation on behalf of the Northern Territory Government.

The Darwin Waterfront Corporation managed the design, construction and leases of the new offices. Local company NT Link was commissioned for the construction.

‘The new ticketing offices increase capacity for our cruise operators and enhance the visitor experience’, said Minister for Tourism, Sport and Culture, Lauren Moss.

‘The Darwin Waterfront Corporation has listened to the needs of businesses on the wharf and responded with a solution that is a win-win for our harbour cruise operators, restauranteurs and visitors to the wharf.

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‘Darwin Harbour is an iconic and historic tourist attraction, and it’s important we continue to develop our local harbour cruise industry.’

The Member for Port Darwin, Paul Kirby, is pleased these local businesses that deliver such iconic Top End experiences to Territorians and tourists alike will now have a physical location at the wharf.

‘A sunset harbour cruise is an ultimate Darwin experience, and to be able

to find these three operators in one centralised location is a great outcome’, he said.

The new office building also allows for Darwin Harbour Cruises to relocate from the food arcade, making a highly sought after tenancy available for a new food outlet to further enhance and complement the existing offerings at Stokes Hill Wharf.

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Financial statement overviewFor the Year Ended 30 June 2019

Board members’ report

The Darwin Waterfront Corporation Board members present their report on the accounts for the year ended 30 June 2019.

Members

The following persons held office as members of the Darwin Waterfront Corporation (‘the corporation’) Board during the year and up to the date of this report:

• Tracey Hayes – Chair

• Alastair Shields – Chief Executive Officer

• Andrew Kirkman – Member

• Anne Tan – Member

• Charles Burkitt – Member

• Kelvin Costello – Member

• Jacqueline Jennings – Member

Further details on members are provided at note 25 to the financial statements and member profiles at pages 10 and 16 of the annual report.

Principal activities

The Darwin Waterfront Corporation is a statutory corporation established to develop, manage and service the Darwin Waterfront Precinct for the benefit of the community and on behalf of the NT Government. The corporation is promoting the precinct as a place of residence and business and a venue for public events and entertainment.

Ministerial directions

No written ministerial directions were received by the corporation under Section 20 of the Darwin Waterfront Corporation Act 2006 for the year ended 30 June 2019.

Review of operations and significant changes during the financial period

The corporation was established on 19 September 2006. Functions bestowed upon it under the Darwin Waterfront Corporation Act 2006 include:

• management of property (including land and marine infrastructure) in the precinct that is owned and controlled by the corporation

• facilitate the development of land and anything required for construction to be carried out in the precinct

• promoting the precinct as a place of residence and business and a venue for public events and entertainment

• preservation of good order in the precinct

• provision of municipal services in the precinct

• maintenance of civic amenities and facilities in the precinct

• advising the minister about the precinct

• development and management of land not currently forming part

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of the precinct as directed by the minister and in accordance with regulations.

Operationally, the number of public events organised at the precinct decreased in 2018–19 by 9.8 per cent (or 27 events). However, there was a 21 per cent increase in patronage numbers compared to 2017–18 (or 16 829 visitors). Owners of the retail and commercial property in the precinct, Toga Group, continued financial contributions to the staging of events, providing a welcomed boost to the promotion of the precinct.

Patronage of the multi-storey car park increased by 52 per cent (or 79 095 cars) in the 2018–19 financial year compared to the prior year. The significant increase in parking numbers in 2018–19 was due to:

• the corporation introduced a ticketless car parking system in late 2017

• the corporation ran a discounted parking promotion to attract NTG employees during the day

• the increased number of visitors attending events at the Waterfront.

The Darwin Convention Centre continued to attract national and international delegates in 2018–19, with associated benefits flowing into the Northern Territory economy. The Arafura Games, a government initiative, held a number of sport competitions at the Darwin Convention Centre and attracted 9000 spectators and athletes to the centre.

The corporation holds the head lease for the Stokes Hill Wharf precinct, and receives grant funding for operating, managing and maintaining the asset in the precinct. There were no other significant changes to the corporation’s operations during the financial year.

Operating results

The operating result of the Darwin Waterfront Corporation for 2018–19 was a deficit of $3.022 million (2017–18: deficit $1.125 million).

Matters subsequent to the end of the financial period

At the date of this report, there is no matter or circumstance that has arisen since 30 June 2019 that has significantly affected or may significantly affect:

a) the operations in the financial periods subsequent to 30 June 2019 of the corporation

b) the results of those operations

or

c) the state of affairs in financial periods subsequent to 30 June 2019 of the corporation.

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Likely developments and expected results of operations

The corporation expects to receive operational grants from the Northern Territory Government for payments towards operational expenditure during 2018–19, and to perform any other services required under the Darwin Waterfront Corporation Act 2006.

Auditor

The Auditor-General is the appointed auditor in accordance with Section 32 of the Darwin Waterfront Corporation Act 2006.

This report is made in accordance with a resolution of the board members.

Tracey HayesChair26 September 2019

Alastair ShieldsChief Executive Officer26 September 2019

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Certification of the financial statements

The board members declare that the attached financial statements for the Darwin Waterfront Corporation have been prepared from proper accounts and records in accordance with the Darwin Waterfront Corporation Act 2006 and the Corporations Act 2001 and comply with Australian Accounting Standards (including Australian Accounting Interpretations).

We further state that the information set out in the Comprehensive Operating Statement, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and notes to and forming part of the financial statements presents fairly the financial performance and cash flows for the year ended 30 June 2019 and the financial position on that date.

At the time of signing, we are not aware of any circumstances that would render the particulars included in the financial statements misleading or inaccurate. This declaration is made in accordance with a resolution of the board members.

Tracey Hayes Alastair ShieldsChair Chief Executive Officer26 September 2019 26 September 2019

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Comprehensive Operating Statement

For the year ended 30 June 2019

NOTE2019

$’0002018

$’000

INCOME

Grants and Subsidies Revenue

Current 19,316 19,907

Capital 2,520 2,240

Sales of Goods and Services 3 3,397 3,335

Interest Revenue 72 54

Other Income 3 967 784

Total Income 26,272 26,320

EXPENSES

Employee Expenses 1,192 1,207

Administrative Expenses

Purchases of Goods and Services 4 3,522 3,774

Property Maintenance 5 3,942 4,077

Agent Service Arrangements 6 880 916

Depreciation and Amortisation 7 6,730 4,737

Grants and Subsidies Expenses

Current 8 8,066 7,624

Capital 8 10 -

Interest Expenses 9 4,952 5,110

Total Expenses 29,294 27,445

Net Deficit (3,022) (1,125)

Other Comprehensive income, Net of Income Tax Changes in asset revaluation reserve

(272) 44,360

Total Other Comprehensive income, Net of Income Tax

(272) 44,360

Comprehensive Result (3,293) 43,235

The Comprehensive Operating Statement should be read in conjunction with the notes to the financial statements.

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Balance Sheet

As at 30 June 2019

NOTE2019

$’0002018

$’000

ASSETS

Current Assets

Cash and Deposits 11 1,800 5,496

Receivables 12 833 502

Prepayments 13 167 159

Total Current Assets 2,800 6,157

Non Current Assets

Property, Plant and Equipment 14 264,074 269,374

Heritage and Cultural Assets 15 101 102

Total Non Current Assets 264,175 269,476

TOTAL ASSETS 266,975 275,633

LIABILITIES

Current Liabilities

Deposits Held - 2,500

Payables 17 2,114 4,099

Borrowings and Advances 18 2,789 2,520

Other Liabilities 22 21

Total Current Liabilities 4,926 9,140

Non Current Liabilities

Borrowings and Advances 18 70,153 72,942

Total Non Current Liabilities 70,153 72,942

TOTAL LIABILITIES 75,079 82,082

NET ASSETS 191,896 193,551

EQUITY

Capital 180,072 178,433

Reserves 44,088 44,360

Accumulated Funds (32,264) (29,242)

TOTAL EQUITY 191,896 193,551

The Balance Sheet should be read in conjunction with the notes to the financial statements.

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Statement of Changes in Equity


NOTE

EQUITY AT 1 JULY $‘000

COMPREHENSIVE RESULT $‘000

TRANSACTIONS WITH OWNERS IN THEIR CAPACITY

AS OWNERS $‘000

EQUITY AT 30 JUNE

$‘000

2018–19 ACCUMULATED FUNDS (29,242) (3,022)(1) - (32,264)

RESERVES

Asset Revaluation Reserve 44,360 (272) - 44,088

Total Reserves 44,360 (272) - 44,088

CAPITAL – TRANSACTIONS WITH OWNERS

Equity Injections

Equity Transfers In 162,742 - 1,638 164,381

Other Equity Injections 15,827 - - 15,827

Equity Withdrawals

Capital Withdrawal (136) - - (136)

178,433 - 1,638 180,072

TOTAL EQUITY AT END OF FINANCIAL YEAR 193,551 (3,293) 1,638 191,896

2017–18 ACCUMULATED FUNDS (28,118) (1,125)(1) - (29,242)

RESERVES

Asset Revaluation Reserve - 44,360 - 44,360

Total Reserves - 44,360 - 44,360

CAPITAL – TRANSACTIONS WITH OWNERS

Equity Injections

Equity Transfers In 158,544 - 4,198 162,742

Other Equity Injections 15,827 - - 15,827

Equity Withdrawals

Capital Withdrawal (136) - - (136)

174,235 - - 178,433

TOTAL EQUITY AT END OF FINANCIAL YEAR 146,118 43,235 4,198 193,551

(1) Net Deficit from the Comprehensive Operating Statement.

The Statement of Changes in Equity should be read in conjunction with the notes to the financial statements.

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Cash Flow Statement


NOTE2019

$’0002018

$’000

CASH FLOWS FROM OPERATING ACTIVITIESOperating ReceiptsGrants and Subsidies Received

Current 19,316 19,907

Capital 2,520 2,240

Receipts From Sales of Goods and Services 6,571 6,402

Interest Received 74 51

Total Operating Receipts 28,481 28,600

Operating PaymentsPayments to Employees (1,205) (1,207)

Payments for Goods and Services (11,041) (10,890)

Grants and Subsidies Paid

Current (9,880) (7,439)

Capital (10) -

Interest Paid (4,952) (5,110)

Total Operating Payments (27,088) (24,646)Net Cash From Operating Activities 20(a) 1,393 3,954

CASH FLOWS FROM INVESTING ACTIVITIESInvesting PaymentsPurchases of Assets (68) (238)

Total Investing Payments (68) (238)Net Cash Used in Investing Activities (68) (238)

CASH FLOWS FROM FINANCING ACTIVITIESDeposits Received/ (Paid)Deposits Received/ (Paid) (2,500) 2,500

Total Deposits Received/ (Paid) (2,500) 2,500

Financing PaymentsFinance Lease Payments (2,520) (2,270)

Total Finance Payments (2,520) (2,270)Net Cash From/ (Used in) Financing Activities 20(b,c) (5,020) 230

Net Decrease/Increase in Cash Held (3,695) 3,946

Cash at the Beginning of the Financial Year 5,496 1,550

CASH AT END OF FINANCIAL YEAR 11 1,800 5,496

The Cash Flow Statement should be read in conjunction with the notes to the financial statements.

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Notes to the financial statements


Index of notes to the financial statements

1. Objectives and funding

2. Statement of significant accounting policies

INCOME

3. Income from rendering of services

EXPENSES

4. Purchases of goods and services

5. Property maintenance

6. Agent service arrangements

7. Depreciation and amortisation

8. Grants and subsidies expenses

9. Interest expenses

10. Write-offs, postponements, waivers, gifts and ex-gratia payments

ASSETS

11. Cash and deposits

12. Receivables

13. Prepayments

14. Property, plant and equipment

15. Heritage and cultural assets

16. Fair value measurement of non-financial assets

LIABILITIES

17. Payables

18. Borrowings and advances

19. Commitments

OTHER DISCLOSURES

20. Notes to the Cash Flow Statement

21. Financial instruments

22. Related parties

23. Contingent liabilities and contingent assets

24. Events subsequent to balance date

25. Details of board members

26. Other statutory information

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1. OBJECTIVES AND FUNDING The corporation was established to develop, manage and service the

Waterfront Precinct for the benefit of the community and on behalf of the Northern Territory Government.

The corporation is predominantly funded by, and is dependent on, the receipt of Government Grants. The financial statements encompass all funds through which the corporation controls resources to carry on its functions.

2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

a) Statement of compliance

The financial statements are general purpose financial statements have been prepared in accordance with the Darwin Waterfront Corporation Act 2006, the Corporations Act 2001 and Australian Accounting Standards (including Australian Accounting Interpretations) and comply with other requirements of the law.

The corporation’s financial statements are required to include:

(i) a Certification of the Financial Statements;

(ii) a Comprehensive Operating Statement;

(iii) a Balance Sheet;

(iv) a Statement of Changes in Equity;

(v) a Cash Flow Statement; and

(vi) applicable explanatory notes to the financial statements.

The financial statements were authorised for issue by the board members on 26 September 2019.

b) Basis of accounting

The financial statements have been prepared using the accrual basis of accounting, which recognises the effect of financial transactions and events when they occur, rather than when cash is paid out or received.

Except where stated, the financial statements have also been prepared in accordance with the historical cost convention. The corporation is a not-for-profit entity for financial reporting purposes. Cost is based on the fair values of the consideration given in exchange for assets.

The form of the corporation’s financial statements is also consistent with the requirements of Australian Accounting Standards. The effects of all relevant new and revised standards and interpretations issued by the Australian Accounting Standards Board (AASB) that are effective for the current annual reporting period have been evaluated.

The following new and revised accounting standards and interpretations were effective for the first time in 2018–19:

Darwin Waterfront Corporation

Notes to and forming part of the financial statements


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AASB 9 Financial Instruments

The corporation applied AASB 9 for the first time in 2018–19. AASB 9 Financial Instruments replaces AASB 139 Financial Instruments: Recognition and Measurement for annual periods beginning on or after 1 January 2018. The corporation has not restated the comparative information, which continues to be reported under AASB 139. Where applicable, differences arising from the adoption of AASB 9 have been recognised directly in accumulated funds and other components of equity. The nature and effect of the changes as a result of adoption of this new accounting standard are described below.

Classification and measurement

Financial instruments have been reclassified into one of three measurement bases – amortised cost, fair value through other comprehensive income (FVOCI) and fair value through profit or loss (FVTPL). The classification of these instruments is based on the corporation’s business model for managing the financial assets and the contractual terms of the cash flows.

The classification and measurement requirements of AASB 9 did not have a significant impact on the corporation. The following are the changes in the classification of the financial assets:

• The corporation’s debt instruments are comprised of receivables and lease receivables. These assets were classified as receivables as at 30 June 2018 under AASB 139 and were measured at amortised cost. As these assets are held to collect contractual cash flows that are solely payments of principal and interest, they continued to be measured at amortised cost from 1 July 2018.

The corporation has not designated any financial liabilities as at fair value through profit or loss. There are no changes in classification and measurement for the corporation’s financial liabilities.

AASB 139 categories

Receivables

Balances at 30 June 2018

AASB 9 categories Balances at 1 July 2018 Fair value through profit or loss

Mandatorily at fair value

Designated at fair value

Amortised cost

Fair value through OCI

$’000 $’000 $’000 $’000 $’000

472 - - 472 -

472 - - 472 -

Impairment

The adoption of AASB 9 requires the loss allowance to be measured using a forward-looking expected credit loss (ECL) approach, replacing AASB 139’s incurred loss approach. AASB 9 also requires a loss allowance to be recognised for all debt instruments other than those held at fair value through profit or loss.

There has been no changes to impairment losses following the adoption of AASB 9.

Several other amending standards and AASB interpretations have been issued that apply to the current reporting periods but are considered to have no impact on public sector reporting.

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Standards and Interpretations Issued but not yet effective

No Australian accounting standards have been early adopted for 2018–19.

On the date of authorisation of the financial statements, the following standards and interpretations were in issue but not yet effective and are expected to have an impact on future reporting periods:

AASB 16 Leases

AASB 16 Leases is effective for annual reporting periods beginning on or after 1 January 2019 and will be reported for the first time in 2019–20 financial statements. When effective, the standard will supersede AASB 117 Leases and require the majority of leases to be recognised on the balance sheet.

For lessees with operating leases, a right-of-use asset will now be included in the balance sheet together with a lease liability for all leases with a term of 12 months or more, unless the underlying assets are of low value. The comprehensive operating statement will no longer report operating lease rental payments. Instead, amortisation expense will be recognised relating to the right-of-use asset and interest expense relating to the lease liability.

The right-of-use asset will be amortised generally on a straight-line basis, while the lease liability will reduce to reflect lease payments made and increase to reflect the interest on the liability. Consistent with Northern Territory Treasury Corporation’s methodology applied to other long-term liabilities, the lease liability has been discounted. As the lease term progresses, the carrying amount of the asset (cost less accumulated amortisation) is likely to reduce more quickly than the liability, resulting in a lower net asset in the earlier stages of the lease arrangement.

The modified retrospective approach has been elected to transition to the new lease standard. This approach does not require restatement of comparative years, and the cumulative impact is accounted for as an equal adjustment to the right-of-use asset and lease liabilities; thus, having no impact in the corporation’s net assets at initial adoption.

Consequently, it is expected that approximately $0.185 million will be recognised in the balance sheet as a lease liability and corresponding right to use asset from 2019–20.

For lessors, the finance and operating lease distinction remains largely unchanged.

AASB 1058 Income for Not-for-Profit Entities and AASB 15 Revenue from Contracts with Customers

AASB 1058 Income for Not-for-Profit Entities and AASB 15 Revenue from Contracts with Customers are effective for not-for-profit entities for annual reporting periods beginning on or after 1 January 2019 and will be reported for the first time in 2019–20 financial statements.

AASB 1058 clarifies and simplifies income-recognition requirements that apply to not-for-profit entities in conjunction with AASB 15.

Under AASB 15, revenue from agreements which are enforceable, have sufficiently specific performance obligations and transfer goods or services to the customer (or third party beneficiary), will be recognised when or as performance obligations are satisfied, and not immediately upon receipt as currently occurs. Consequently, more liabilities will be recognised in the balance sheet after adoption of this standard.

Where a transaction does not meet the criteria above or is classified as a donation

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transaction, revenue will be accounted for in accordance with AASB 1058.

Impacts identified include:

• grants received to construct or acquire a non-financial asset will be recognised as a liability and subsequently recognised as revenue as the performance obligations under the grant are satisfied. At present, such grants are recognised as revenue on receipt

• grants with an enforceable agreement and sufficiently specific performance obligations will be recognised as revenue progressively as the associated performance obligations are satisfied. At present, such grants are recognised as revenue on receipt

• grants that have an enforceable agreement but no specific performance obligations but have restrictions on the timing of expenditure will also continue to be recognised on receipt as time restriction on the use of funds is not sufficiently specific to create a performance obligation

• grants that are not enforceable and/or not sufficiently specific will not qualify for deferral and will continue to be recognised as revenue on receipt.

The modified retrospective approach has been elected to transition to the new revenue standards. This approach does not require restatement of the comparative year with the cumulative impact adjusted to the opening accumulated funds.

c) Going concern basis

At 30 June 2019, the corporation had net current liabilities of $2.126 million (2018: $2.983 million). The corporation reported a deficit for the year of $3.022 million (2018: $1.125 million). The ongoing operations of the corporation are reliant on continued Northern Territory Government funding. Based on this, the board members believe the corporation has the ability to repay all debts when due and payable, and therefore, the going concern basis used to prepare the financial statements is appropriate.

d) Reporting entity

The financial statements cover the Darwin Waterfront Corporation as an individual reporting entity.

The corporation is a statutory authority established under the Darwin Waterfront Corporation Act 2006.

The principal place of business of the corporation is Level 5, 7 Kitchener Drive, Darwin NT 0800

Postal address of the corporation is: GPO Box 1449, Darwin NT 0801

e) Comparatives

Where necessary, comparative information for the 2017–18 financial year has been reclassified to provide consistency with current year disclosures.

f) Presentation and rounding of amounts

The corporation is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191, issued by the Australian Securities and

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Investments Commission, relating to ‘rounding off’. All amounts are presented in Australian dollars and have been rounded off in accordance with that ASIC Corporations Instrument to the nearest thousand dollars, or in certain cases, the nearest dollar. Figures in the financial statements and notes may not equate due to rounding.

g) Changes in accounting policies

There have been no changes to accounting policies adopted in 2018–19 as a result of management decisions.

h) Accounting judgements and estimates

The preparation of the financial report requires the making of judgements and estimates that affect the recognised amounts of assets, liabilities, revenues and expenses and the disclosure of contingent liabilities. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgements about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The corporation has made no judgements or assumptions that would cause a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

i) Goods and services tax

Income, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred on a purchase of goods and services is not recoverable from the Australian Tax Office (ATO). In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payables in the Balance Sheet.

Cash flows are included in the Cash Flow Statement on a gross basis. The GST components of cash flows arising from investing and financing activities, which are recoverable from, or payable to, the ATO, are classified as operating cash flows. Commitments and contingencies are disclosed net of the amount of GST recoverable or payable unless otherwise specified.

j) Income tax

The corporation is exempt from income tax under Section 50-1 of the Income Tax Assessment Act 1997 (ITAA97). The corporation is an exempt entity pursuant to item 5.2 of the table at section 50–25 of the ITAA97 on the basis that it is a public authority constituted under an Australian law.

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k) Employee benefits

Employee benefits include wages, salaries and recreation leave. The Northern Territory Government has funded all corporation employee annual leave, leave bonuses, long service leave, the Superannuation Guarantee Levy and other employee benefits. All employee provisions are retained within the accounts of the Northern Territory Government, and all employee costs are expensed as they are incurred.

l) Darwin Convention Centre concession arrangements

The Northern Territory of Australia entered into contractual arrangements with Darwin Cove Convention Centre Pty Ltd (‘the concession holder’) under which, in return for a right to operate a convention centre, the concession holder was required to design, finance, construct, commission, control, operate, maintain, repair and refurbish the centre.

The concession holder, in turn, entered into a contractual arrangement with Ogden IFC (Darwin) Pty Ltd, now AEG Ogden (‘the operator’) to operate and manage the centre. The concession arrangement will operate for a period of 25 years, until June 2033, including a three-year handover phase.

The concession holder has also entered into separate contractual arrangements with Honeywell Ltd (‘the facilities manager’) for the maintenance, repair and refurbishment of the facility over the period until the centre is handed over to the Territory.

The concession arrangements require the corporation to make periodic payments to the concession holder for the life of the concession period of 25 years, following the construction of the centre. This payment primarily represents payments made in respect of debt, equity, construction and maintenance aspects of the project. Up to 75 per cent of this payment is subject to abatement if the facility should be unavailable, if the facility fails to meet availability standards or if the operator fails to achieve key performance indicators.

In addition, the arrangements also provide for the payment of a Territory Operating Payment (TOP) that comprises the net cash shortfall arising from the operation of the convention centre during a year, capped to a maximum contribution and subject to negotiation. The legal framework for the centre includes incentives intended to encourage the operator to exceed benchmark levels of performance.

Expenses incurred under the availability payment and operating payment arrangements are included in the deficit for the year.

The liability under the Territory Availability Payment (TAP) arrangement has been recognised as a liability of the corporation. This liability will reduce over the life of the concession arrangement in line with those payments that represent the principal component of the availability payment. The corporation has also recognised the convention centre as an asset, being the corporation’s equitable interest in the underlying physical asset. That asset will be amortised on a straight-line basis over the useful life of the asset.

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3. INCOME FROM RENDERING OF SERVICES

2019 $’000

2018 $’000

Sales of Goods and Services Car Parking Fees 918 956

Rates 847 775

Wave Lagoon Admissions 536 586

Berthage Fees 220 193

Other 876 825

Total Sales of Goods and Services 3,397 3,335

Other Income Property Rental Income 671 577

Multi-Storey Car Park Body Corporate 296 -

Surplus Repayment - 207

Total Other Income 967 784

Income

Income encompasses both revenue and gains. Income is recognised at the fair value of the consideration received, exclusive of the amount of GST. Exchanges of goods or services of the same nature and value without any cash consideration being exchanged are not recognised as income.

Corporation revenue from ordinary activities comprises grants received from the Northern Territory Government, municipal rates, property rental income and user charges from admission to the Wave Lagoon, car parking, berthing and venue hire. Municipal rates are recognised when levied, while user charges are recognised upon provision of the particular service.

Grants and other contributions

Grants, donations, gifts and other non-reciprocal contributions are recognised as revenue when the corporation obtains control over the assets comprising the contributions. Control is normally obtained upon receipt.

Contributions are recognised at their fair value. Contributions of services are only recognised when a fair value can be reliably determined and the services would be purchased if not donated.

Rendering of services

Revenue from rendering services is recognised by reference to the stage of completion of the contract. The revenue is recognised when:

• the amount of revenue, stage of completion and transaction costs incurred can be reliably measured

• it is probable that the economic benefits associated with the transaction will flow to the entity.

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4. PURCHASES OF GOODS AND SERVICES

2019 $’000

2018 $’000

Audit Fees (auditors received no other benefits) 41 48

Power 886 847

Water and Sewerage 337 317

Insurance 292 285

Marketing and Promotion 753 827

Other Operational Costs 1,213 1,450

Total Purchases of Goods and Services 3,522 3,774

5. PROPERTY MAINTENANCE

2019 $’000

2018 $’000

Cleaning 574 561

Grounds Maintenance 2,991 2,981

Security 296 290

Other 1 80 245

Total Property Maintenance 3,942 4,077

1. Includes Repairs and maintenance expense non-cash payment of $6,000 for the 2019 FY and $9,000 for the 2018 FY.

Funding is received for maintenance works associated with corporation assets and costs associated with maintenance works on the corporation’s assets are expensed as incurred.

6. AGENT SERVICE ARRANGEMENTS

2019 $’000

2018 $’000

Department of Corporate and Information Services 65 81

Department of Infrastructure, Planning and Logistics - 24

Department of the Attorney-General and Justice 17 13

Surf Life Saving Northern Territory 714 715

City of Darwin 84 83

Total Agent Service Arrangements 880 916

7. DEPRECIATION AND AMORTISATION

2019 $’000

2018 $’000

Depreciation 3,982 2,630

Amortisation 2,748 2,107

Total Depreciation and Amortisation 6,730 4,737

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8. GRANTS AND SUBSIDIES EXPENSES

2019 $’000

2018 $’000

Current GrantsTerritory Incentive Payments 839 828

Total Current Grants 839 828

Current SubsidiesTerritory Operating Payments 3,998 3,663

Territory Availability Payments 3,229 3,133

Total Subsidies 7,227 6,796

Total Current Grants and Subsidies 8,066 7,624

Capital GrantsGoyder Park Beautification 10 -

Total Capital Grants 10 -

Total Grants and Subsidies 8,076 7,624

Government grants are non-reciprocal in nature and are recognised as revenue in the financial year in which they are receivable.

9. INTEREST EXPENSES

2019 $’000

2018 $’000

Interest on Obligations Under Finance Lease 4,952 5,110

Total Interest Expenses 4,952 5,110

Interest expenses include interest and finance lease charges. Interest expenses are expensed in the period in which they are incurred.

10. WRITE-OFFS, POSTPONEMENTS, WAIVERS, GIFTS AND EX-GRATIA PAYMENTS

2019 $’000

NO. OF TRANS.

2018 $’000

NO. OF TRANS.

Write-offs, Postponements and Waivers Under the Financial Management Act 1995

Represented by:

Amounts written off, postponed and waived by Delegates

Irrecoverable amounts payable to the Territory or an agency written off

1 5 1 5

Total Written Off, Postponed and Waived by Delegates

1 5 1 5

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11. CASH AND DEPOSITS

2019 $’000

2018 $’000

Current GrantsCash on Hand 8 4

Cash at Bank 1,792 5,492

Total Cash and Deposits 1,800 5,496

For the purposes of the Balance Sheet and the Cash Flow Statement, cash includes cash on hand, cash at bank and cash equivalents. Cash equivalents are highly liquid short-term investments that are readily convertible to cash.

The effective interest rate is the rate that exactly discounts estimated future cash receipts or payments through the expected life of the financial asset or financial liability, or, where appropriate, a shorter period.

The effective interest rate for cash and deposits for the year was 1.48% (2018: 1.50%).

12. RECEIVABLES

2019 $’000

2018 $’000

CurrentAccounts Receivable 386 507

Less: Allowance for Impairment Losses (62) (73)

324 434

Interest Receivables 5 6

GST Receivables 326 30

Other Receivables 178 32

Total Receivables 833 502

Consisting of:Government Agencies 331 36

External Bodies 502 466

Receivables include accounts receivable and other receivables and are recognised at fair value less any allowance for impairment losses.

The allowance for impairment losses represents the amount of receivables the corporation estimates are likely to be uncollectible and are considered doubtful. The board does not hold any collateral in relation to these receivables.

Analyses of the age of the receivables that are past due as at the reporting date are disclosed in an ageing schedule under credit risk in Note 21 Financial Instruments. Reconciliation of changes in the allowance accounts is also presented.

The average credit period on sales of goods and rending of services is 30 days. No interest is charged on the trade receivables.

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13. PREPAYMENTS

2019 $’000

2018 $’000

CurrentPrepayments 167 159

Total Prepayments 167 159

Prepayments represent payments in advance of receipt of goods and services or that part of expenditure made in one accounting period covering a term extending beyond that period.

14. PROPERTY, PLANT AND EQUIPMENT

2019 $’000

2018 $’000

Land 52,455 52,455

Total Land 52,455 52,455

BuildingsAmenities Building 1,824 1,760

Lifts and Lift Landings 1,500 1,500

Shade Structures 5,952 6,111

Multi-Storey Car Park 13,680 13,680

Covered Deck at Precinct 700 700

Playground 92 92

Less: Accumulated Depreciation (7,999) (7,060)

Total Buildings 15,749 16,783

Buildings Under Finance LeaseConvention Centre 137,400 137,400

Less: Accumulated Amortisation (30,228) (27,480)

Total Buildings Under Finance Lease 107,172 109,920

InfrastructureMarine Infrastructure 56,548 55,422

Roads and Services 17,480 17,427

Jervois Car Park 458 458

Wave Lagoon 19,348 19,093

Public Domain 19,434 19,413

Bridge Link 4,542 4,542

Parking Meters 46 46

Less: Accumulated Depreciation (30,352) (27,442)

Total Infrastructure 87,504 88,959

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2019 $’000

2018 $’000

Plant and EquipmentPlant and Equipment 1,930 1,876

Less: Accumulated Depreciation (749) (629)

Total Plant and Equipment 1,181 1,247

Computer HardwareComputer Hardware 52 52


Total Computer Hardware - 10

Transport EquipmentTransport Equipment 39 25


Total Transport Equipment 11 -

Total Property, Plant and Equipment 264,074 269,374

The property, plant and equipment of the corporation comprises the Darwin Waterfront Precinct including land, buildings, infrastructure and related items of plant and equipment.

The corporation values land, buildings and infrastructure assets in accordance with the Australian Accounting Standard AASB 116 Property, Plant & Equipment and annually reviews the carrying balances of its assets in accordance with Accounting Standards to ensure any impairment loss is appropriately recorded.

85


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87


Acquisitions

All items of property, plant and equipment with a cost, or other value, equal to or greater than $10,000 are recognised in the year of acquisition and depreciated as outlined below. Items of property, plant and equipment below the $10,000 threshold are expensed in the year of acquisition.

The construction cost of property, plant and equipment includes the cost of materials and direct labour, and an appropriate proportion of fixed and variable overheads.

Complex assets

Major items of plant and equipment comprising a number of components that have different useful lives are accounted for as separate assets. The components may be replaced during the useful life of the complex asset.

Subsequent additional costs

Costs incurred on property, plant and equipment subsequent to initial acquisition are capitalised when it is probable that future economic benefits in excess of the originally assessed performance of the asset will flow to the corporation in future years. Where these costs represent separate components of a complex asset, they are accounted for as separate assets and are separately depreciated over their expected useful lives.

Construction (work in progress)

As part of the financial management framework, the Department of Infrastructure, Planning and Logistics is responsible for managing general government capital works projects on a whole-of-government basis. Therefore, funding for most of the corporation’s capital works is provided directly to the Department of Infrastructure, Planning and Logistics, and the cost of construction work in progress is recognised as an asset of that department. Once completed, capital works assets are transferred to the corporation.

Revaluations and impairment

Revaluation of assets

Subsequent to initial recognition, assets belonging to the following classes of non-current assets are revalued with sufficient regularity to ensure that the carrying amount of these assets does not differ materially from their fair value at reporting date:

• land

• buildings

• infrastructure assets.

Plant and equipment are stated at historical cost less depreciation, which is deemed to equate to fair value. The latest revaluations of land, buildings and infrastructure assets were independently conducted as at 30 June 2018 by Herron Todd White.

Other classes of non-current assets are not subject to revaluation and are measured at cost.

Refer to Note 16: Fair Value Measurement of Non-Financial Assets for additional disclosures.

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Impairment of assets

An asset is said to be impaired when the asset’s carrying amount exceeds its recoverable amount.

Non-current physical and intangible corporation assets are assessed for indicators of impairment on an annual basis or whenever there is indication of impairment. If an indicator of impairment exists, the corporation determines the asset’s recoverable amount. The asset’s recoverable amount is determined as the higher of the asset’s depreciated replacement cost and fair value less costs to sell. Any amount by which the asset’s carrying amount exceeds the recoverable amount is recorded as an impairment loss.

Impairment losses are recognised in the Comprehensive Operating Statement. They are disclosed as an expense unless the asset is carried at a revalued amount. Where the asset is measured at a revalued amount, the impairment loss is offset against the asset revaluation reserve for that class of asset to the extent that an available balance exists in the asset revaluation reserve.

In certain situations, an impairment loss may subsequently be reversed. Where an impairment loss is subsequently reversed, the carrying amount of the asset is increased to the revised estimate of its recoverable amount. A reversal of an impairment loss is recognised in the Comprehensive Operating Statement as income, unless the asset is carried at a revalued amount, in which case the impairment reversal results in an increase in the asset revaluation reserve.

Corporation property, plant and equipment assets were assessed for impairment as at 30 June 2019. No impairment adjustments were required as a result of this review.

Depreciation and amortisation expense

Items of property, plant and equipment, including buildings but excluding land, have limited useful lives and are depreciated or amortised using the straight-line method over their estimated useful lives. Amortisation applies in relation to intangible non-current assets with limited useful lives and is calculated and accounted for in a similar manner to depreciation.

The estimated useful lives for each class of asset are determined as follows:

2019 2018Buildings 4–100 years 4–100 years

Infrastructure Assets 4–100 years 4–100 years

Plant and Equipment 3–100 years 3–100 years

Heritage and Cultural Assets 4–100 years 4–100 years

Transport Equipment 5 years 5 years

Computer Hardware 5 years 5 years

Assets are depreciated or amortised from the date of acquisition or from the time an asset is completed and held ready for use.

Leased assets

Leases under which the corporation assumes substantially all the risks and rewards of ownership of an asset are classified as finance leases. Other leases are classified as operating leases.

89


Finance leases

Finance leases are capitalised. A lease asset and lease liability equal to the lower of the fair value of the leased property and present value of the minimum lease payments, each determined at the inception of the lease, are recognised. Lease payments are allocated between the principal component of the lease liability and the interest expense.

A finance lease is currently recognised in respect of the Darwin Convention Centre. Interest expenses associated with the repayment obligations are expensed in the period they are incurred.

Operating leases

Operating lease payments made at regular intervals throughout the term are expensed when the payments are due, except where an alternative basis is more representative of the pattern of benefits to be derived from the leased property. Lease incentives under an operating lease of a building or office space is recognised as an integral part of the consideration for the use of the leased asset. Lease incentives are to be recognised as a deduction of the lease expenses over the term of the lease.

15. HERITAGE AND CULTURAL ASSETS

2019 $’000

2018 $’000

Carrying AmountAt Valuation 115 115


Carrying Amount as at 30 June 101 102

Reconciliation of MovementsCarrying Amount at Beginning of Year 102 103

Depreciation (1) (1)

Additions from Asset Transfers - -

Carrying Amount at End of Year 101 102

Heritage and Cultural Assets Valuation

Refer to Note 16: Fair Value Measurement of Non-Financial Assets for additional disclosures.

Impairment of Heritage and Cultural Assets

Corporation heritage and cultural assets were assessed for impairment as at 30 June 2019. No impairment adjustments were required as a result of this review.

90

16. FAIR VALUE MEASUREMENT OF NON-FINANCIAL ASSETS

a) Fair value hierarchy

Fair values of non-financial assets categorised by levels of inputs used to compute fair value are:

LEVEL 3 $’000

TOTAL FAIR VALUE $’000

2019Asset Classes (Note 14)Land 52,455 52,455

Buildings 15,749 15,749

Infrastructure 87,504 87,504

Plant and Equipment 1,181 1,181

Transport Equipment 11 11

Cultural Assets (Note 15) 101 101

Total 157,001 157,001

2018Asset Classes (Note 14)Land 52,455 52,455

Buildings 16,783 16,783

Infrastructure 88,959 88,959

Plant and Equipment 1,247 1,247

Computer Hardware 10 10

Cultural Assets (Note 15) 102 102

Total 159,556 159,556

There were no transfers between level 1 and levels 2 or 3 during the period.

b) Valuation techniques and inputs

Valuation techniques used to measure fair value are:

Level 3 Techniques

Asset Classes

Land Revaluation Approach

Buildings Revaluation Approach

Infrastructure Revaluation Approach

Plant and Equipment Cost Approach

Computer Hardware Cost Approach

Transport Equipment Cost Approach

Cultural Assets Cost Approach

91


c)

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Level 3 fair values of buildings, infrastructure, plant and equipment, computer hardware, transport equipment and cultural assets were determined by computing their depreciated replacement costs because an active market does not exist for such facilities. The depreciated replacement cost was based on a combination of internal records of the historical cost of the facilities. Significant judgement was also used in assessing the remaining service potential of the facilities, given local environmental conditions, projected usage and records of the current condition of the facilities.

92

2018

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93


(ii) Sensitivity analysis

Land – Unobservable inputs used in computing the fair value of land include the historical costs. Higher or lower costs will result in higher and lower fair values respectively.

Buildings, infrastructure, plant and equipment, computer hardware, cultural assets and transport equipment – unobservable inputs used in computing the fair value of infrastructure, plant and equipment and transport equipment include the historical cost and the consumed economic benefit for each asset. These assets are depreciated on useful lives ranging from three to 100 years. In respect of sensitivity of fair values to changes in input values, a higher historical cost results in a higher fair value and a greater consumption of economic benefits or useful lives lowers the fair value.

17. PAYABLES

2019 $’000

2018 $’000

Accounts Payable 12 14

Accrued Expenses 435 603

Grants and Subsidies Payable 1,667 3,482

Total Payables 2,114 4,099

Consisting of:

Government Agencies 75 65

External Bodies 2,039 4,034

Liabilities for accounts payable and other amounts payable are carried at cost, which is the fair value of the consideration to be paid in the future for goods and services received, whether or not billed to the corporation. Accounts payable are normally settled within 30 days.

18. BORROWINGS AND ADVANCES Loans are initially recognised at the fair value of the consideration received less

directly attributable transaction costs.

After initial reco gnition, borrowings are subsequently measured at amortised cost using the effective interest method. Interest expense is recognised on an accrual basis.

MOVEMENT

Finance lease

liabilities* $’000

Deposits Received/

(Paid) $’000

Total financing activities

$’000Opening balance – 1 July 2018 75,462 2,500 77,962

Financing cash flows (2,520) (2,500) (5,020)

Non-cash changes - - -

New finance leases - - -

Closing balance – 30 June 2019 72,942 - 72,942

94

2019 $’000

2018 $’000

CurrentFinance Lease Liability 2,789 2,520

Non CurrentFinance Lease Liability 70,153 72,942

Total Other Liabilities 72,942 75,462

19. COMMITMENTS Commitments are those contracted as at 30 June 2019 where the amount of the

future commitment can be reliably measured.

Under the Darwin Convention Centre concession arrangements (refer to Note 2(l)), the corporation has commitments in relation to the Darwin Convention Centre. These commitments relate to the TAP and include payments in relation to debt, equity, construction and maintenance aspects of the project.

Principal and related interest commitments are disclosed at Note 21(d).

Additional TAP commitments excluding principal and interest can be quantified as follows:

2019 $’000

2018 $’000

Within 1 year 3,243 3,143

Later than 1 year and not later than 5 years 14,003 13,587

Later than 5 years 40,347 44,006

Total Commitment 57,593 60,736

20. NOTES TO THE CASH FLOW STATEMENT

a) Reconciliation of cash

The total of the corporation ‘Cash and deposits’ of $1.8 million recorded in the Balance Sheet is consistent with that recorded as ‘Cash’ in the Cash Flow Statement.

Reconciliation of operating deficit for the period to net cash flows from operating activities

2019 $’000

2018 $’000

Operating Deficit (3,022) (1,125)

Non-Cash Items:

Depreciation and Amortisation 6,730 4,737

Repairs and Maintenance 6 9

Doubtful Debts (11) 73

Changes in Assets and Liabilities:

Increase in Receivables (320) (30)

Decrease/(Increase) in Prepayments (7) (40)

(Decrease)/Increase in Payables (1,984) 330

(Decrease)/Increase in Other Deferred Income 1 -

Net Cash from Operating Activities 1,393 3,954

95


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96

21. FINANCIAL INSTRUMENTS A financial instrument is a contract that gives rise to a financial asset of one entity and

a financial liability or equity instrument of another entity. The corporation manages its capital to ensure that it will be able to continue as a going concern. Financial instruments held by the corporation include cash and deposits, receivables, payables and finance lease liability.

Financial instruments

Financial assets and liabilities are recognised on the Balance Sheet when the corporation becomes a party to the contractual provisions of the financial instrument.

Due to the nature of operating activities, certain financial assets and financial liabilities arise under statutory obligations rather than a contract. Such financial assets and liabilities do not meet the definition of financial instruments as per AASB 132 Financial Instruments Presentation.

These include statutory receivables arising from taxes including GST and penalties. Exposure to interest rate risk, foreign exchange risk, credit risk, price risk and liquidity risk arise in the normal course of activities.

a) Categorisation of financial instruments

The carrying amounts of the corporation’s financial assets and liabilities by category are disclosed in the table below.

2018–19 Categorisation of Financial Instruments

Financial Assets – Amortised Cost

$’000

Financial Liabilities – Amortised Cost

$’000Total

$’000Cash and Deposits 1,800 - 1,800

Receivables1 507 - 507

Total Financial Assets 2,307 - 2,307

Payables1 - 2,114 2,114

Finance Lease Liabilities - 72,942 72,942

Total Financial Liabilities - 75,056 75,056

(1) Total amounts disclosed here exclude statutory amounts

97


2017–18 Categorisation of Financial Instruments

Financial Assets – Loans &

Receivables $’000

Financial Liabilities – Amortised Cost

$’000Total

$’000Cash and Deposits 5,496 - 5,496

Receivables1 472 - 472

Total Financial Assets 5,968 - 5,968

Payables1 - 4,099 4,099

Deposit Held - 2,500 2,500

Finance Lease Liabilities - 75,462 75,462

Total Financial Liabilities - 82,061 82,061

(1) Total amounts disclosed here exclude statutory amounts

Classification of financial instruments from 1 July 2018

From 1 July 2018, the corporation classifies its financial assets in the following measurement category:

• amortised cost.

Classification of financial instruments until 30 June 2018

The corporation has elected not to restate comparative information. As a result, the comparative information provided continues to be accounted for in accordance with AASB 139.

Financial assets are classified into the following categories:

• loans and receivables

• amortised cost.

Financial liabilities are classified into the following category:

• financial liabilities at amortised cost.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market other than those held for trading and available for sale. Loans and receivables exclude statutory receivables.

Financial liabilities at amortised cost

Financial instrument liabilities measured at amortised cost include all advances received, finance lease liabilities and borrowings. Amortised cost is calculated using the effective interest method.

98

Impairment of financial assets

Financial assets are reviewed at each balance sheet date to determine whether there is objective evidence of impairment. A financial asset or group of financial assets is impaired and impairment losses are incurred if there is objective evidence of impairment, resulting from one or more loss events that occurred after initial recognition that indicates that it is probable that the entity will be unable to collect all amounts due. The carrying amount of a financial asset identified as impaired is reduced to its estimated recoverable amount.

b) Financial risk management objectives

The board has overall responsibility for the determination of risk management objectives and policies, and while retaining ultimate responsibility for them, it has delegated the authority for designing and operating processes that ensure the effective implementation of the objectives and policies to the management team. The corporation’s risk management policies and objectives are therefore designed to minimise the potential impacts of these risks on the results of the corporation where such impacts may be material. The board receives a minimum of four reports per annum from the Chief Executive Officer through which it reviews the effectiveness of the processes put in place and the appropriateness of the objectives and policies it sets.

c) Credit risk exposure of receivables

Receivables are monitored on an ongoing basis to ensure that exposure to bad debts is not significant. The entity applies the AASB 9 simplified approach to measuring expected credit losses. This approach recognises a loss allowance based on lifetime expected credit losses for all accounts receivable. To measure expected credit losses, receivables have been grouped based on shared risk characteristics and days past due.

In accordance with the provisions of the Financial Management Act 1995, receivables are written-off when there is no reasonable expectation of recovery. Credit risk for the comparative year is assessed under AASB 139 and is based on objective evidence of impairment.

The loss allowance for receivables as at the reporting date is disclosed below.

99


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Receivables(a)2019

$’0002018

$’000

Opening balance 434 507

Adjustment on adoption of AASB 9 - -

Adjusted opening balance 434 507

Written off during the year (1) (1)

Recovered during the year (120) 1

(Increase)/decrease in allowance recognised in profit or loss

11 (73)

Total Receivables 324 434

Reconciliation of the Allowance for Impairment Losses

Balance as at 1 July (73) -

(Increase)/decrease in allowance for Impairment loss

11 ( 73)

Balance as at 30 June (62) (73)

(a) Total amounts disclosed exclude statutory amounts.

d) Liquidity risk

Liquidity risk is the risk that the corporation will not be able to meet its financial obligations as they fall due. The corporation manages liquidity risk by continuously monitoring forecast and actual cash flows and is funded by the Northern Territory Government as required.

The following tables detail the corporation’s remaining contractual maturity for its financial assets and liabilities:

101


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e) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. The primary market risk that the corporation is exposed to is interest rate risk.

(i) Interest rate risk

Interest rate risk is the risk of financial loss and/or increased costs due to adverse movements in the values of financial assets and liabilities as a result of changes in interest rates.

The corporation has limited exposure to interest rate risk, with the exception of cash at bank. The debt profile on Convention Centre payments was locked in at financial close of the project in May 2005 and incorporates two bond components: one fixed and one linked to the consumer price index. As such, Convention Centre payments are not exposed to interest rate risk.

Market sensitivity analysis

Changes in the variable rates of 100 basis points (1 per cent) at reporting date would have the following effect on the corporation’s profit or loss and equity:

Profit or Loss and Equity

100 Basis Points Increase $’000

100 Basis Points Decrease

$’00030 June 2019Financial Assets – Cash at Bank 18 (18)

Net Sensitivity 18 (18)

30 June 2018Financial Assets – Cash at Bank 55 (55)

Net Sensitivity 55 (55)

f) Net Fair Value

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The highest and best use takes into account the use of the asset that is physically possible, legally permissible and financially feasible.

When measuring fair value, the valuation techniques used maximise the use of relevant observable inputs and minimise the use of unobservable inputs. Unobservable inputs are used to the extent that sufficient relevant and reliable observable inputs are not available for similar assets/liabilities.

104

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

Unobservable inputs are data, assumptions and judgements that are not available publicly, but are relevant to the characteristics of the assets/liabilities being valued. Such inputs include internal corporation adjustments to observable data to take account of particular and potentially unique characteristics/functionality of assets/liabilities and assessments of physical condition and remaining useful life.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the following fair value hierarchy based on the inputs used:

Level 1 – inputs are quoted prices in active markets for identical assets or liabilities

Level 2 – inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly

Level 3 – inputs are unobservable.

The fair value of financial instruments is determined on the following basis:

• the fair value of cash, deposits, advances, receivables and payables approximates their carrying amount, which is also their amortised cost

• the fair value of derivative financial instruments are derived using current market yields and exchange rates appropriate to the instrument

• the fair value of other monetary financial assets and liabilities is based on discounting to present value the expected future cash flows by applying current market interest rates for assets and liabilities with similar risk profiles.

Other than the finance lease liability, the carrying amount of financial assets and financial liabilities recorded in the financial statements approximates their respective net fair values. The finance lease liability has a fair value of $79 million and a carrying value of $73 million.

For financial instruments measured and disclosed at fair value, the following table groups the instruments based on the level of inputs used.

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TOTAL CARRYING

AMOUNT $’000

NET FAIR VALUE

LEVEL 1 $’000

NET FAIR VALUE

LEVEL 2 $’000

NET FAIR VALUE

LEVEL 3 $’000

NET FAIR VALUE TOTAL $’000

2019

Financial Assets

Cash and Deposits 1,800 1,800 - - 1,800

Receivables 507 507 - - 507

Total Financial Assets 2,307 2,307 - - 2,307

Financial Liabilities

Payables 2,114 2,114 - - 2,114

Finance Lease Liability 72,942 - - 79,166 79,166

Total Financial Liabilities 75,056 2,114 - 79,166 81,280

TOTAL CARRYING

AMOUNT $’000

NET FAIR VALUE

LEVEL 1 $’000

NET FAIR VALUE

LEVEL 2 $’000

NET FAIR VALUE

LEVEL 3 $’000

NET FAIR VALUE TOTAL $’000

2018

Financial Assets

Cash and Deposits 5,496 5,496 - - 5,496

Receivables 472 472 - - 472

Total Financial Assets 5,968 5,968 - - 5,968

Financial Liabilities

Payables 4,099 4,099 - - 4,099

Deposits Held 2,500 2,500 - - 2,500

Finance Lease Liability 75,462 - - 83,521 83,521

Total Financial Liabilities 82,061 6,599 - 83,521 90,120

The fair value of the finance lease liability is estimated by discounting the remaining liability till contractual maturity date using Thomson Reuters and Westpac swap reference rates plus NT Treasury Corporation’s lending margin rate.

There were no changes in valuation techniques during the period.

22. RELATED PARTIESi) Related parties

The Darwin Waterfront Corporation is a statutory corporation and is wholly owned and controlled by the Northern Territory Government. Related parties of the corporation include:

• the portfolio minister and key management personnel (KMP) because they have authority and responsibility for planning, directing and controlling the activities of the corporation directly

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• spouses, children and dependants who are close family members of the portfolio minister or KMP

• all public sector entities that are controlled and consolidated into the whole-of-government financial statements

• any entities controlled or jointly controlled by KMP or the portfolio minister or controlled or jointly controlled by their close family members.

ii) Key management personnel (KMP)

Key management personnel of the Darwin Waterfront Corporation are those persons having authority and responsibility for planning, directing and controlling the activities of the corporation. These include the Minister for Tourism, Sport and Culture; the Chief Executive Officer; the General Manager; and the six members of the Board of Directors of the Darwin Waterfront Corporation as listed at Note 25.

iii) Remuneration of key management personnel

The details below excludes the salaries and other benefits of Minister for Tourism, Sport and Culture as the minister’s remunerations and allowances are payable by the Department of the Legislative Assembly and consequently disclosed within the Treasurer’s annual financial statements.

The aggregate compensation of key management personnel of the corporation is set out below:

2018–19 $’000

2017–18 $’000

Short-term benefits 514 341

Post-employment benefits 48 32

Total 562 373

Three of the seven board members were Northern Territory public servants during the 2018–19 financial year and were remunerated by their respective agencies.

iv) Related party transactions

Significant transactions with government-related entities include grant funding received from the NT Government. The corporation also transacts with other government entities; however, these are not individually significant.

The following table provides quantitative information about related party transactions entered into during the year.

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REVENUE FROM

RELATED PARTIES

$’000

PAYMENTS TO

RELATED PARTIES

$’000

AMOUNTS OWED BY RELATED PARTIES

$’000

AMOUNTS OWED TO RELATED PARTIES

$’000

2019

Related Party

All NTG Government departments

21,946 1,581 7 75

REVENUE FROM

RELATED PARTIES

$’000

PAYMENTS TO

RELATED PARTIES

$’000

AMOUNTS OWED BY RELATED PARTIES

$’000

AMOUNTS OWED TO RELATED PARTIES

$’000

2018

Related Party

All NTG Government departments

22,514 1,521 7 92

Outside of normal citizen-type transactions with the Territory, there were no related party transactions that involved key management personnel and their close family members. No provision has been required, nor any expense recognised, for impairment of receivables from related parties.

All other transactions that have occurred with KMP and their related parties have been minor or domestic in nature. In this context, transactions are only disclosed when they are considered material in influencing the financial statements.

23. CONTINGENT LIABILITIES AND CONTINGENT ASSETS

a) Contingent liabilities

Contingent liabilities of the corporation relate to the granting of a concession to Darwin Cove Convention Centre Pty Ltd. Agreements for leases or licences of property, plant or equipment generally contain standard indemnity provisions, similar to those commonly found in commercial leases, covering the lessor or licensor for any losses suffered as a result of the lease or licence agreement. The contingent liabilities resulting from the indemnities are unquantifiable.

The granting of a concession to Darwin Cove Convention Centre Pty Ltd, which has been described in Note 2(l), gives rise to contingent liabilities associated with:

• discriminatory changes in law

• environmental clean-up costs

• incentive payments to the operator if performance targets established for the centre should be exceeded

• negotiated payments to the operator in the early years of the centre’s operation.

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For the categories listed above, neither the probability nor the amount that the Territory may be called upon to pay at some future date can be determined reliably. As a result, these items are regarded as contingent liabilities, where the existence of an actual liability in the future will be confirmed only by the occurrence of uncertain future events that lie outside the control of the corporation.

b) Contingent assets

A contingent asset also arises as a consequence of the concession arrangement. As described in Note 2(l), a TAP is recognised as a liability in the corporation’s Statement of Financial Position. However, the Territory has the right to recover up to 75 per cent of that liability if the operator should not achieve certain performance criteria. Because neither the probability of such a recovery nor the amount that might be recovered can be determined reliably, the part of the TAP that might be subject to abatement is classified as a contingent asset.

24. EVENTS SUBSEQUENT TO BALANCE DATE No events have arisen between the end of the financial year and the date of this

report that require adjustment to or disclosure in these financial statements.

25. DETAILS OF BOARD MEMBERS

Full meetings of board members

There were six meetings in the 2018–19 year attended by:

Member Meetings Eligible to Attend

Meetings Attended

Tracey Hayes 6 5

Alastair Shields 6 3

Andrew Kirkman 6 3

Anne Tan 6 6

Charles Burkitt 6 6

Kelvin Costello 6 5

Jacqueline Jennings 6 6

Election and continuation in office of board members

The date of appointment of members:

Member Initial date of appointment

Tracey Hayes 1 July 2018

Alastair Shields 30 March 2017

Andrew Kirkman 21 April 2015

Anne Tan 30 March 2017

Charles Burkitt 1 July 2018

Kelvin Costello 1 July 2018

Jacqueline Jennings 1 July 2018

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26. OTHER STATUTORY INFORMATION

a) Distributions

No dividends or distributions were made during the financial period ended 30 June 2019. No dividends or distributions are proposed.

b) Number of employees

The corporation had 11 employees (2018: 11) during the financial period, who were fully remunerated by the Northern Territory Government.

c) Indemnifying officers

No indemnities have been given or agreed to be given or insurance premiums paid or agreed to be paid by the corporation during or since the end of the financial year to any person who is or has been an officer or auditor of the corporation.

d) Segments

The corporation operates solely in Australia to manage and operate the Darwin Waterfront Precinct.

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TELEPHONE 08 8999 5155

FAX 08 8999 5210

EMAIL [email protected]

WWW.WATERFRONT.NT.GOV.AU

LEVEL 5 HOSPITALITY BUILDING

7 KITCHENER DRIVE DARWIN NT 0800

annual report · 2019. 12. 16. · the hon. lauren moss mla minister for tourism, sport and culture...

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