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DEPARTMENT OF STATE

DEVELOPMENT BUSINESS AND

INNOVATION ANNUAL REPORT

2012-13

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DSDBI ANNUAL REPORT 2012-13

This 2012-13 Annual Report covers the Department of State Development, Business and Innovation, an individual entity.

Published by the Department of State Development, Business and Innovation. September 2013. Also published on dsdbi.vic.gov.au

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Strategic Communications Branch Department of State Development, Business and Innovation

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This document is also available in an accessible format on the internet at dsdbi.vic.gov.au

© Copyright State of Victoria 2013. This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968.

Authorised by the Victorian Government, Department of State Development, Business and Innovation 121 Exhibition Street, Melbourne VIC 3000 Postal Address: PO Box 4509, Melbourne VIC 3001

Tel: 03 9651 9999 Fax: 03 9651 9770

ISSN 2202-6924 (Print) ISSN 2202-7440 (Online)

DSDBI 6397

DEPARTMENT OF STATE DEVELOPMENT, BUSINESS AND INNOVATION ANNUAL REPORT 2012-2013 1

CONTENTS01 OVERVIEW 2

Secretary’s foreword 3

Major Department changes during 2012-13 5

DSDBI objectives 5

Our ministers 5

Organisational chart 6

Major achievements for 2012-13 8

Governance arrangements 11

02 STRATEGIC OBJECTIVES 12

Assist business in accessing skilled workers to align with Victoria’s industry needs 13

Promote Victoria to attract tourists, investors and students 15

Support organisations to boost their productivity through innovation 18

Provide market intelligence and assistance to organisations to make it easy to invest in Victoria 22

Create more opportunities for Victorian businesses to grow and become more productive and competitive in the global marketplace 24

03 FINANCIAL REPORT 30

04 APPENDICES 106

2 DEPARTMENT OF STATE DEVELOPMENT, BUSINESS AND INNOVATION ANNUAL REPORT 2012-2013

01 OVERVIEW


01 OVERVIEW

ECONOMIC CONTEXT

Victorian businesses continued to face difficult trading conditions during 2012-13, reflecting subdued national and global economic settings, the high Australian dollar (for most of the year) and ongoing cautious consumer and business sentiment. Pressures on both trade-exposed and domestic industries have continued, with firms looking for efficiency gains and cost reductions. Consolidation of operations, including closure of some facilities has, unfortunately, been the outcome in some instances.

The fundamentals of the Victorian economy remain sound, with growth expected to strengthen in 2013-14 to 2.25 per cent (from the forecast outcome of 1.5 per cent in 2012-13). This compares favourably with Australia’s other non-mining states and international peers. Many of the previous drivers of growth remain important, although contributing at lower levels: population growth, especially net migration, remains strong and above the national level; Victoria continues to have the strongest non-residential building sector in Australia; and many housing indicators such as housing finance and dwelling investment are showing growth. Confidence has been slowly improving, reflecting the low inflation and low interest rate environment, and the recent shift in the exchange rate.

Outcomes on employment, investment and exports have been mixed, with employment growth picking up at the end of 2012-13. While unemployment has risen, participation in the workforce has declined. Competition for job vacancies is strong as the level of job advertisements has declined both in Victoria and nationally. Investment activity has remained quiet, although the housing market has shown recent positive signs.

Victoria’s outlook remains more sensitive to the exchange rate than most states. While recent falls may contribute to a more positive outlook, the current (lower) level is still high by historical standards and short-term movements are uncertain. Other positives for the outlook come from improved economic performance in the United States and Japan, although these are offset by concerns about the outlook for China and the future of quantitative easing in the United States.

SECRETARY’S FOREWORD

THE DEPARTMENT

In April 2013, the Department of Business and Innovation became the new Department of State Development, Business and Innovation (DSDBI). It includes Regional Development Victoria, energy and resources, and whole-of-government ICT, together with its existing portfolios. A new Office of State Development brings the Department’s investment attraction and facilitation activities together in one division and will facilitate significant investment and development projects, requiring a whole-of-government approach. The Office of the Red Tape Commissioner also joins the Department to advise the Minister for State Development and the Minister for Employment and Trade on cutting business costs.

These and other changes announced at the time reflected, in the words of Premier Napthine, a desire by the Government for “the public service to offer a proactive ‘open for business’ culture across the whole-of-government.” They are also a natural extension of the work undertaken by the Department over the whole of 2012-13, with our continued focus on assisting businesses to export, invest and innovate – three activities critical to the state’s economic growth.

Details of the Department’s achievements and activities for 2012-13 are contained throughout this report. They confirm that this past year has once again been a very active, challenging and productive time for the Department as Victoria’s lead economic development agency.

The Government’s Business Engagement Model has continued to expand as our key way of working directly with business to help boost productivity, encourage innovation and develop new markets. During 2012-13, the Department’s Business Development Managers, based in 16 Victorian Government Business Offices (VGBOs) across metropolitan and regional Victoria met with more than 12,700 Victorian companies to identify barriers to growth faced by individual firms and infrastructure, and skills and regulatory issues where we can advocate for and lead a broader Government response.


01 OVERVIEW

The Small Business Festival, held during August 2012, raised awareness of Government and private sector support services available for small businesses and provided workshops and network opportunities to support business growth and competitiveness.

The Major Projects portfolio achievements in 2012-13 included the $288 million BioSciences Research Centre (AgriBio, Centre for AgriBioscience), a state-of-the-art agricultural research facility at La Trobe University’s Bundoora campus, which was formally opened by the Premier, Minister for Major Projects and Minister for Agriculture and Food Security in April 2013. The $135.8 million redevelopment of the Victorian Arts Centre’s Hamer Hall was also completed, with a refurbished foyer for greater ease of movement, auditorium improvements including new seating and improved acoustics, and external improvements that better connect Hamer Hall with the Southbank precinct and the Yarra River. Construction of Melbourne Park’s new Eastern Plaza and National Tennis Centre were completed ahead of schedule and in time for the start of the 2013 Australian Open in January. Construction of the Western Precinct remained on schedule to be completed in time for the 2015 Australian Open.

Looking ahead, a new Departmental structure, effective from 1 July 2013, will allow us to meet our expanded economic development responsibilities and clearly integrate them with current initiatives and programs to support business growth. I particularly look forward to new opportunities to bring together our work on investment attraction and facilitation across the state with our energy and earth resources, major projects, innovation and technology, and international engagement and trade functions. Small business and key service industries such as tourism, international education, and financial, professional and technical services will also continue as Departmental priorities for 2013-14.

The Department has also continued its active pursuit of investment opportunities from local and international companies seeking to establish, expand or diversify in Victoria. In the 2012-13 financial year, the Victorian Government facilitated 166 projects valued at more than $2.2 billion which are expected to generate 4,737 new jobs.

The Department’s trade engagement program grew strongly in 2012-13, providing direct support for companies to develop new export markets and skills, and organising a wide range of inbound and outward Trade Missions, including four very successful Super Trade Missions – to China, the Gulf States and Turkey, India and South-East Asia. Super Trade Missions, led by the Premier or senior ministers, include between 100 and 500 companies, and provide the critical mass for building enduring relationships with large and diverse markets.

As well as these Super Trade Missions, throughout 2012-13 the Department also delivered 22 smaller Trade Missions targeted at particular industries or events in high-growth markets.

Complementing this outbound program, the Department helped organise and support 16 inbound investment and buyer missions to Victoria in 2012-13, including major missions to the International Food and Beverage Trade Week, the Australian International Air Show and Australian Automotive Week.

Fostering innovation in research and development activities at the firm and industry level, and in how we engage with businesses, remained a key focus for the Department over the past year. This included developing and supporting networks and collaborations to share ideas and information, and new programs to help companies make better use of Victoria’s outstanding innovation and technology capabilities. These activities include the successful rollout of the Innovation Voucher Program, which matches small and medium-sized businesses with appropriate skills and services suppliers, and the Investing in Manufacturing Technology Program, which supports high-performing manufacturers to become more internationally competitive by adopting new technologies or processes. Similarly, the Technology Voucher Program, launched in September 2012, has provided successful recipients with funding to support the testing and adoption of new technologies.

I would like to thank all members of the Department for their hard work and professionalism throughout a very busy year of major change. Now, as the new Department of State Development, Business and Innovation, we are even better placed to lead an ‘open for business’ culture across the whole-of-government that contributes strongly to Victoria’s economic growth.

Howard Ronaldson Secretary


01 OVERVIEW

MAJOR DEPARTMENT CHANGES DURING 2012-13 DSDBI OBJECTIVES

CHANGES IN MINISTERIAL APPOINTMENTS

On 13 March 2013, on the advice of the Premier, His Excellency the Governor of the State of Victoria withdrew the following ministerial appointment relevant to the Department:

> The Hon. Richard Dalla-Riva, MLC, as Minister for Employment and Industrial Relations, Minister for Manufacturing, Exports and Trade

His Excellency the Governor of Victoria made the following ministerial appointments:

> The Hon. Peter Ryan, MLA, as Minister for State Development

> The Hon. Louise Asher, MLA, as Minister for Employment and Trade

> The Hon. Robert Clark, MLA, as Minister for Industrial Relations

> The Hon. Nicholas Kotsiras, MLA, as Minister for Energy and Resources

> Mr David Hodgett, MLA, as Minister for Manufacturing, Minister for Major Projects

MACHINERY OF GOVERNMENT CHANGES

On 9 April 2013, the name of the Department was changed to the Department of State Development, Business and Innovation (DSDBI) by order of the Governor in Council.

The new Department incorporates an office of State Development to provide whole-of-government coordination of strategic investment projects, and the added portfolios of Regional Development Victoria, energy and earth resources and whole-of-government ICT.

Joint co-ordinating ministers for the new DSDBI are the Minister for State Development (the Hon. Peter Ryan) and the Minister for Innovation, Services and Small Business (the Hon. Louise Asher).

Staff carrying out policy and advice functions relating to private sector workplace relations transferred to the Department of Treasury and Finance, effective 3 June 2013.

OUR MINISTERS

01 The Hon. Louise Asher, MLA Minister for Innovation, Services and Small Business Minister for Tourism and Major Events Minister for Employment and Trade (from 13 March 2013)

02 The Hon. Peter Ryan, MLA Minister for State Development (from 13 March 2013) Minister for Regional and Rural Development

03 The Hon. Gordon Rich-Phillips, MLC Minister for Technology Minister responsible for the Aviation Industry

04 The Hon. David Hodgett, MLA (from 13 March 2013) Minister for Major Projects Minister for Manufacturing

05 The Hon. Dr Denis Napthine, MLA Minister for Major Projects (1 July 2012 to 13 March 2013) Minister for Regional Cities

06 The Hon. Richard Dalla-Riva, MLC (1 July 2012 to 13 March 2013) Minister for Employment and Industrial Relations Minister for Manufacturing, Exports and Trade

07 The Hon. Nicholas Kotsiras, MLA (from 13 March 2013) Minister for Energy and Resources

08 The Hon. Robert Clark, MLA (from 13 March 2013) Minister for Industrial Relations

OUR PARLIAMENTARY SECRETARIES

09 Russell Northe, MLA Parliamentary Secretary for Small Business and Tourism

10 Damian Drum, MLC Parliamentary Secretary for Regional Development (from 13 March 2013)

The Department of State Development, Business and Innovation is the Victorian Government’s lead agency for economic development. The Department develops and implements a diverse range of programs, initiatives and projects designed to attract and facilitate investment, encourage exports, generate job opportunities, stimulate innovation, and promote Victoria nationally and internationally.

DSDBI’s objectives include:

> assisting businesses in accessing skilled workers to align with Victoria’s industry needs

> promoting Victoria to attract tourists, investors and students

> supporting organisations to boost their productivity through innovation

> providing market intelligence and assistance to organisations to make it easy to invest in Victoria

> creating more opportunities for Victorian businesses to grow and become more productive and competitive in the global marketplace


01 OVERVIEW

PARLIAMENTARY SECRETARY SMALL BUSINESS AND TOURISM

Russell Northe MLA

SMALL BUSINESS COMMISSIONER

Geoff Browne

RISK AND AUDIT COMMITTEE

SECRETARY

Howard Ronaldson

ORGANISATIONAL CHARTDepartment of State Development, Business and Innovation (at 30 June 2013)

MINISTER FOR ENERGY AND RESOURCES

The Hon. Nicholas Kotsiras MLA

MINISTER FOR INNOVATION, SERVICES AND SMALL BUSINESSMINISTER FOR TOURISM AND MAJOR EVENTSMINISTER FOR EMPLOYMENT AND TRADE

The Hon. Louise Asher MLA

MINISTER FOR MAJOR PROJECTSMINISTER FOR MANUFACTURING

The Hon. David Hodgett MLA

TOURISM AND AIRLINE SERVICES Chief Executive/ Deputy SecretaryLeigh Harry

Tourism Victoria

Marketing

Strategy and Policy

Aviation and Investment Attraction

INVESTMENT AND MAJOR PROJECTSDeputy SecretaryPeter Noble

Major Projects Victoria

Invest Assist

Melbourne Market Relocation Project

ENERGY AND EARTH RESOURCES*Deputy SecretarySandra Denis

TRADE AND INDUSTRY DEVELOPMENTDeputy SecretaryJustin Hanney

Investment

International Coordination Office

Export

Industry Development

Metropolitan/Regional Victorian Government Business Offices

INNOVATION AND TECHNOLOGYDeputy SecretaryGrantly Mailes

Technology Industries

Science and Technology Programs

Innovation and Technology Capabilities

Science and Technology Policy

Programs and Small Business

Labour Markets and International Education

* New Divisions added to the Department following the machinery-of-Government changes announced on 9 April 2013.


01 OVERVIEW

PARLIAMENTARY SECRETARY FOR REGIONAL DEVELOPMENT

Damian Drum

MINISTER FOR TECHNOLOGYMINISTER RESPONSIBLE FOR THE AVIATION INDUSTRY

The Hon. Gordon Rich-Phillips MLC

MINISTER FOR STATE DEVELOPMENT MINISTER FOR REGIONAL AND RURAL DEVELOPMENT

The Hon. Peter Ryan MLA

RED TAPE COMMISSIONER

John Lloyd

MINISTER FOR REGIONAL CITIESThe Hon. Dr Denis Napthine MLA

POLICYDeputy SecretaryJohn Robinson

Policy and Research

Strategic Planning and Ministerial Services

Infrastructure

Regulation Reform

OFFICE OF STATE DEVELOPMENT*Acting Deputy SecretaryMatt Carrick

REGIONAL DEVELOPMENT VICTORIA*Deputy SecretaryLachlan Bruce

CORPORATE SERVICESDeputy SecretaryRob Barr

Human Resources

Information Management and Technology

Legal, Audit and Risk

Strategic Communications

Finance

Business Services

Business Victoria Online


01 OVERVIEW

From 2013-14, projected export sales will be reported for a two-year-period following participation in an export program (this reflects a change in budget reporting for future years).

The Department also hosted major inbound missions throughout 2012-13. These missions were designed to coincide with major events, including Australian Automotive Week, the International Food and Beverage Trade Week and the Australian International Airshow, and Aerospace and Defence Exposition.

International education is one of the state’s most valuable export sectors. International education generated $4.36 billion in expected revenue in 2012 and provides an estimated 30,500 jobs. During 2012-13, more than 80 Victorian education and training organisations participated in overseas Trade Missions.

The Study Melbourne website underwent a redevelopment to strengthen its role in promoting Victoria as a study destination. In 2012-13, 45 Victorians were awarded Hamer Scholarships of $10,000 to study Chinese-language in Victoria’s sister-state, Jiangsu, China.

INVESTMENT FACILITATED

The Department facilitated more than 166 investment projects for Victoria, totalling more than $2.2 billion during 2012-13. Projects included the new Kraft Foods Asia Pacific Confectionery Centre of Excellence – Australia’s largest food research and development centre – in Ringwood; the expansion of Cotton On’s headquarters in Geelong North; and the new $17 million Nine Mile Fresh apple sorting, grading and packaging facility in Tynong.

The Department continued to implement the Victorian Government’s manufacturing strategy through the launch of two programs aimed to lift the productivity and competitiveness of Victoria’s manufacturing sector, including the Investing in Manufacturing Technology Program and the first round of Manufacturing Productivity Networks Program.

BUSINESS ENGAGEMENT

The Department continued its proactive approach to engaging with businesses across Victoria through its Business Engagement Model. Business Development Managers consulted with more than 12,700 Victorian businesses to gather information and better understand the business environment. This consultation better informs the Department to assist business to achieve sustainable growth and enhanced productivity.

The business.vic.gov.au website provided a vital link between Victorian businesses and Government, with 2.92 million visits and more than 725,000 in-depth interactions occurring between businesses and Government throughout 2012-13. The website features information and tools to make compliance easier, improve business skills and solve problems to help businesses grow. The Government also interacted with business through the more than 70,000 subscribers to the Small Business Victoria Update eNewsletter, and received more than 27,800 calls and emails through its Business Victoria Contact Centre, which offers referrals to business advice and support.

The network of Victorian Government Business Offices was extended with the opening of the Eastern Metropolitan VGBO in Ringwood. Six regional Business Leaders Forums were held in Ballarat, Benalla, Bendigo, Geelong, Mildura and Traralgon. Hosted by the Deputy Premier Peter Ryan, these forums were attended by up to 200 local business people.

INTERNATIONAL TRADE

The Department delivered opportunities for Victorian organisations through strategic engagement with overseas markets. As part of the Government’s international engagement, the Department continued its successful Trade Mission Program in 2012-13, including four Super Trade Missions to China, the Gulf States and Turkey, India and South-East Asia.

More than 1,000 organisations participated in the Super Trade Missions. The projected export sales as reported by participants from the four Super Trade Missions over the 13-24 month period was $1.3 billion.

MAJOR ACHIEVEMENTS FOR 2012-13


01 OVERVIEW

The $10 million Victorian Design Initiatives 2012-2015 strategy was announced in September 2012 to help Victorian businesses innovate by understanding and integrating best-practice design to improve business performance.

In April 2013, the Export Design Program and Design Matters, the Government’s brand for its new Public Design Program, were announced to promote greater awareness of design among the general public and business, and to build Victoria’s design profile. The Export Design Program provides support for Victorian design businesses to attend international trade fairs, meetings to arrange or confirm sale contracts, and to carry out export market research.

TECHNOLOGY

In December 2012, the Government supported 78 companies through workshops, seminars and industry visits as part of its Collaborative Networks Pilot Program. This $1.2 million program supports the development of four networks in diverse areas of industry, including agriculture and manufacturing, biotechnology and pharmaceuticals, technical textiles and composites industries, and textile, clothing and footwear for the mining sectors. The new networks have facilitated 10 new collaborative industry and research projects.

In September 2012, the Government launched its Technology Voucher Program to facilitate the uptake of biotechnology, small technologies and ICT across industry sectors. More than 40 Technology Development Vouchers were awarded during 2012-13, valued at up to $50,000. The funds will assist companies to develop technologies or integrate technologies into a product, process or service.

In April 2013, the Department announced the recipients of Technology Implementation Vouchers, valued at up to $250,000. These vouchers enable businesses to explore the use of cutting-edge technologies to create more competitive products and processes. Projects included the development of a new diagnostic tool for the forensic industry, a cloud-enabled livestock weight management system, a renewable solvent to replace existing petroleum-derived products, and large-scale production of an additive to improve the strength of plastics.

The Department facilitated the Victorian Government’s partnership with the Commonwealth to deliver the $42 million Automotive New Markets Program to assist Victorian automotive businesses to diversify into new products or markets. The Department also secured an investment for Toyota to locally manufacture the next major facelift to the Toyota Camry.

SMALL BUSINESS

The Department continued to provide year-round assistance for small business through a range of practical services and programs delivered through Small Business Victoria. These included: low-cost workshops and seminars in Melbourne and regional Victoria; the Small Business Mentoring Service; the Small Business Festival; and the Streetlife initiative.

The Department managed the interaction between businesses and the Government via business.vic.gov.au, the Business Victoria Contact Centre, its eNewsletter and social media. There were 2.92 million visits to business.vic.gov.au during 2012-13. The website, together with the Contact Centre and social media platforms allows businesses to access information, ask questions and manage their interactions with Government. There were about 383,300 social media interactions and more than 27,800 calls and emails to the Contact Centre during 2012-13. There are more than 70,000 subscribers to the Small Business Victoria Update eNewsletter.

INNOVATION

Launched in September 2012, the Victorian Government’s Innovation and Technology Voucher Programs represent two new ways of engaging with Victorian businesses, providing nimble and responsive funding through vouchers to help businesses develop better products, processes and services for local and global markets. Innovation, including the uptake of new technologies, is a critical driver of productivity. A total of 100 vouchers was awarded under the Innovation Voucher Program and 54 vouchers were awarded under the Technology Voucher Program during 2012-13.


01 OVERVIEW

The Department also continued to advocate for a fair and productive regulatory and policy framework to influence workforce participation, industrial relations and skilled and business migration. Measures included its submission to the Annual Wage Review 2012-13.

The Department placed 341 young people in the Victorian public sector under the Youth Employment Scheme.

AVIATION AND AIRLINE SERVICES

The $20 million Regional Aviation Fund supports infrastructure upgrades at regional public-use aerodromes. As at 30 June 2013, funding of $9.8 million has been committed to upgrade aeronautical infrastructure at Bendigo, Colac, Warrnambool, Latrobe, Edenhope, Cohuna, Benalla, Stawell and Wangaratta airports. The infrastructure upgrades ensure Victoria has a network of safe and accessible regional airports that can be used by a greater variety of aircraft in all-weather conditions, including emergency services aircraft.

In February 2013, the Department facilitated the launch of Sichuan Airlines’ Australian services to Melbourne. The airline commenced direct flights connecting Melbourne with Chengdu, a major inland economic hub, three times per week. This will provide an additional 820 seats per week, or 42,744 seats per annum, between Melbourne and China’s fastest-growing region.

MAJOR PROJECTS

Major Projects Victoria managed approximately $1.9 billion worth of major projects in delivery stages, including the Melbourne Park Redevelopment and the Metropolitan Fire Brigade’s Future of Organisational Learning and Development project.

TOURISM AND MAJOR EVENTS

In September 2012, the Government’s first dedicated brand campaign to the China market was unveiled as part of the China Super Trade Mission. The $8 million integrated marketing campaign promoted Victoria in Beijing, Shanghai, Guangzhou and Shenzhen using advertising, print, social media and public relations activities. The campaign also featured a fully redeveloped Chinese-language website.

To complement the brand campaign in China, the Government launched an integrated trade and consumer marketing campaign, providing information on tourism experiences available in Melbourne and Victoria, and promoting themed travel packages. Over the six-week campaign, the microsite featured 30 new themed Victorian travel packages, attracted more than 50,000 visitors, more than 18,000 campaign participants and nearly 4,000 new fans to Tourism Victoria’s Sina Weibo media channel.

EMPLOYMENT AND INDUSTRIAL RELATIONS

The Department nominated 651 business migrants for provisional and permanent residency visas in 2012-13. These businesses expect to invest up to $1.1 billion and create more than 1,300 jobs in Victoria. The Department also nominated 768 business migrants – who successfully established businesses in Victoria while holding a provisional visa – for permanent residency. The business activities of these migrants have resulted in investment of $227 million and the creation of 871 jobs across the state.

The Department also assessed the overseas qualifications of 1,191 recently arrived individuals who are keen to pursue further education and employment in Victoria. The leading sources of migrants in this category were India, Sri Lanka, Iran, Pakistan, New Zealand and the Philippines.


01 OVERVIEW

Governance is the system by which organisations are directed and controlled, providing the foundations for sound decision-making and accountability.

The Department’s governance framework:

> has established processes for developing organisational strategy and direction

> ensures compliance and accountability

> contains clearly defined structures and relationships

> maintains performance monitoring and review processes

The Secretary, as head of the Department, is accountable to the Department’s ministers for governance of the Department. The Secretary chairs the Strategy and Management Team (SMT), the strategically focused leadership team for the Department that provides an integrated approach for operations, emphasising accountability, prioritisation and coordination of whole-of-department issues.

The SMT consists of the Secretary, Deputy Secretaries, the Executive Director, Strategic Communications, and the Executive Director, Strategic Planning and Ministerial Services. It meets weekly and is responsible for:

> determining the Department’s strategic direction, consistent with government policy

> appropriately resourcing the Department’s activities

> building a high-performance culture

> actively managing relationships with stakeholders

The Secretary is assisted by key committees, including the:

Planning Committee, chaired by the Secretary: provides long-term strategic leadership on whole-of-portfolio priorities and challenges, and standards for corporate and business planning.

Information Management and Technology Strategy Board, chaired by the Deputy Secretary, Innovation and Technology: responsible for developing strategies for information management initiatives and significant new business systems, and establishing the appropriate governance arrangements.

Information Security Committee, chaired by the Deputy Secretary, Corporate Services: responsible for ensuring that information security practices, including policies, systems and employee awareness, are effective in maintaining the integrity of Departmental information and compliance with relevant legislation and standards.

Accredited Purchasing Unit, chaired by the Deputy Secretary, Corporate Services: responsible for overseeing the Department’s procurement and contracting process through delegated powers assigned by the Victorian Government Purchasing Board.

Occupational Health and Safety Committee, chaired by the Deputy Secretary, Corporate Services: facilitates cooperation and consultation between the Department and employees in instigating, developing and implementing initiatives designed to ensure the health and safety of employees.

People Committee, chaired by the Deputy Secretary, Trade and Industry Development: responsible for guiding the development of departmental workforce and people strategies, shaping organisational culture and monitoring the delivery of key initiatives.

GOVERNANCE ARRANGEMENTS

Environment Steering Committee, chaired by the Deputy Secretary, Corporate Services: responsible for endorsing the Department’s Environment Policy, Environmental Management System and annual Environmental Management Program, and for ensuring compliance with relevant audit and reporting requirements.

Workplace Partnership Committee, chair is shared between the Deputy Secretary, Corporate Services, and a Community and Public Sector Union industrial officer: responsible for providing a formal mechanism for communication and consultation between management and staff consistent with the principles of the Victorian Public Service Workplace Determination 2012.

RISK AND AUDIT COMMITTEE

The Risk and Audit Committee is an independent body established in accordance with the Financial Management Act 1994. It reviews risk management activity and key systems of internal control, including internal and external audit.

The Committee operates under an approved charter and comprises an independent chair, three independent members and one departmental member. Members of the Department’s 2012-13 Risk and Audit Committee were:

> Michael Perry – Independent chair

> Fiona Bennett – Independent member

> Merran Kelsall – Independent member (To December 2012)

> Peter Lewinski – Independent member

> Mark Darmody – Independent member (From March 2013)

> Sonja Gibson – Departmental member


02 STRATEGIC OBJECTIVES


02 STRATEGIC

OBJECTIVES

The success of the Victorian biotechnology sector depends on the ability of companies to attract and retain highly skilled people. To ensure Victoria remains at the forefront of biotechnology innovation, in October 2012, the Government launched initiatives designed to build the commercial, business and technical skills of Victoria’s biotechnology workforce. These initiatives deliver against targets under Victoria’s Technology Plan for the Future – Biotechnology.

Throughout 2012-13, the Government continued to advocate for Victoria’s interests in workplace relations reviews and proceedings.

For example, the Department prepared the Victorian Government submission to the Annual Wage Review 2012-13. The submission urged the Fair Work Commission, when making its decision, to take account of the soft labour market performance and outlook, and the limited capacity for employers to absorb or pass on increases in minimum wages. It also noted the importance of retaining incentives for parties to bargain at the enterprise level. The Fair Work Commission referenced the Victorian Government submission at a number of points in its decision.

The Government also supported Bendigo TAFE’s High Court appeal of the full Federal Court Barclay decision, which was an important test case on the Fair Work Act’s general protections laws. In late 2012, the High Court unanimously allowed the appeal and ordered the respondents to pay the TAFE’s costs of the appeal.

HIGHLIGHTS AND ACHIEVEMENTS:

INNOVATION VOUCHER PROGRAM AND TECHNOLOGY VOUCHER PROGRAM

These two complementary initiatives assist companies to develop new and improved products, processes and services that will enhance their productivity and competitiveness through the use of cutting-edge technologies. The programs provide Victorian businesses with improved access to the state’s extensive research and development and technology expertise in order to support innovation.

The Government supports Victorian industries and businesses in addressing skills shortages across a number of sectors, including health, engineering, science and ICT.

In 2012-13, Victoria nominated 1,331 skilled migrants with skills in high demand for permanent residency visas, including 310 international student graduates, mainly nurses, life scientists, chemists, university lecturers and engineering technologists. More than 1,191 Victorian residents were assisted in having their overseas qualifications recognised. The Department also nominated 651 new business migrants who expect to invest up to $1.1 billion in the Victorian economy.

The Department managed the Youth Employment Scheme. This program encourages the creation of structured training and employment opportunities for young people aged 15 to 24 years by providing a wage subsidy for traineeships in the Victorian public sector. It helps build skills and opportunities for local labour markets and career pathways for those who are disadvantaged.

In 2012-13, 341 young people commenced employment in the Victorian public sector under the scheme. Seven youth employment projects for the private sector placed 115 young people into employment.

In 2012, the Government launched its Innovation Voucher Program, including the Innovation Skills Vouchers, to assist businesses in developing and commercialising new products and processes to improve productivity and competitiveness. Early feedback shows almost a third of Innovation Skills applications are from regional Victoria and that small and medium-sized businesses across the state are keen to embrace innovation in their everyday business activities. Together with the Innovation Business Research and Development Vouchers and the Technology Voucher Program, these initiatives continue to promote the existence of a pool of highly skilled people. This ensures that companies will have access to the necessary skills needed for success in accessing global markets.

ASSIST BUSINESS IN ACCESSING SKILLED WORKERS TO ALIGN WITH VICTORIA’S INDUSTRY NEEDS



BUSINESS ENGAGEMENT MODEL

Throughout 2012-13, the Department continued to deliver the Government’s Business Engagement Model. The model aims to build enduring relationships with individual businesses and capture business intelligence to better inform the Government of the key issues affecting business. Policy processes informed by business intelligence include reforms to the Dangerous Goods (Storage and Handling) Regulations, which came into effect in December 2012, and the Victorian Waste Policy, released in April 2013. The Department also regularly shares a summary of business intelligence with the Environment Protection Authority and the Victorian Work Cover Authority so that issues can be identified and addressed.

The Department delivers the Business Engagement Model through its network of Victorian Government Business Offices throughout Victoria, including the Ringwood office, which opened in 2013. In 2012-13, the Department engaged with more than 12,700 Victorian companies, and facilitated six regional Business Leaders Forums.

The Department also established a partnership with the Department of Education and Early Childhood Development to place skill and training experts within Victorian Government Business Offices. These experts will assist businesses navigate training systems and access support through the Victorian Training Guarantee.

ABORIGINAL EMPLOYMENT INITIATIVES

The Department is delivering integrated initiatives to improve Aboriginal employment rates. These initiatives have resulted in sustainable ongoing employment (16 weeks of continuous work) for 94 Indigenous job seekers in the period from 1 July 2012 to 14 June 2013.

The Government’s Employment StartUp for Indigenous Jobseeker Program supports job seekers by providing training, mentoring and work placements in 17 metropolitan and regional locations across the state.

Partners in the program include industry organisations, local Governments, Indigenous organisations, high-profile sporting clubs and community specialist organisations, such as the Australian Retail Association, the Municipal Association Victoria, the Victorian Transport Association, Collingwood, Essendon and Richmond Football Clubs and the Victorian Rugby Union. This project has 1,149 participants, with 560 placed in employment.

The Department has also partnered with the Australian Retail Association’s Retail Institute to assist with the delivery of the Bridge to Work Program. This program offers Aboriginal job seekers quality retail employment opportunities, retail-based training with a focus on skills directly relevant to working in retail.


02 STRATEGIC

OBJECTIVES

Tourism remains a significant economic driver for Victoria, worth $19.1 billion a year or 5.8 per cent of the total Victorian economy in 2011-12. The tourism industry generated more than 200,000 jobs or seven per cent of the employment in Victoria in 2011-12. China was Victoria’s largest source of international visitors in 2012, and the second largest source of visitors to Australia behind New Zealand.

The second phase of the Department’s Play Melbourne campaign played a significant role in attracting visitors from New Zealand to Melbourne and regional Victoria. The Melbourne Now! campaign – the first Australian tourism campaign to focus on markets beyond the major cities in India – garnered more than 200,000 Facebook fans and was seen by more than five million people.

In 2012, spending by international overnight visitors to Victoria reached a record $4.4 billion, an increase of 2.1 per cent year-on-year. The latest forecasts indicate that Victoria will gain 65 per cent of expected tourism expenditure growth to 2021-22 from international markets, especially China and India. Chinese overnight visitors also had the highest expenditure of all international visitors to Victoria in 2012, following 8.7 per cent year-on-year growth. Chinese visitors to Victoria spent more than the next three largest markets combined (New Zealand, UK and Malaysia), accounting for more than one-fifth of total international visitor expenditure in Victoria.

National Visitor Survey results showed Victoria experienced an increase in domestic overnight expenditure of 4.2 per cent to reach $10.3 billion in 2012. At the same time, domestic overnight visitors to Victoria increased by 1.9 per cent to reach 18 million in 2012.

The Department continued to promote Victoria as a destination of excellence in education, delivering a range of initiatives to attract international students to Victoria’s educational institutions. This includes supporting the participation of more than 80 Victorian education and training organisations on Super Trade Missions to China, India, the Gulf States and Turkey, and South-East Asia, as well as the Department’s education mission to Japan. The Department also supported senior inbound delegations from Brazil, Iraq, India, Japan and Turkey.

In 2012-13, the Department completed a major redevelopment of the Study Melbourne website – the Victorian Government’s portal to information on post-secondary study options in Melbourne and Victoria. The redevelopment included 10 language versions and mobile sites in five languages.

The Department continued to provide support for international students in Victoria, including: the International Student Care Service, which provides free and confidential support and welfare advice for international students; the Student Welcome Desk at Melbourne Airport; two International Student Information Days; and a free Culture Card for international students.


INTERNATIONAL ENGAGEMENT

During 2012-13, the Government established Victorian Government Business Offices in Beijing, Chengdu and Mumbai. The international offices around the world helped facilitate more than $2.2 billion of direct foreign investment into the state in 2012-13, which helped create 4,737 new full-time jobs in Victoria. They also supported 2,685 Victorian organisations operating in international markets. The Government released four country strategies to support Victoria’s international engagement: Engaging China – Strengthening Victoria, the State’s China Strategy (September 2012); the Victoria – Gulf States Engagement Strategy 2013, focusing on Victoria’s engagement with key economies in the Gulf States (February 2013); Victoria and India From Engagement to Partnership 2013, the State’s India Strategy (March 2013); and South-East Asian Market Engagement Plan 2013 (June 2013).

VICTORIA INDIA DOCTORAL SCHOLARSHIPS

These scholarships support essential research by providing funding for India’s brightest students to commence PhD studies at a Victorian institution, helping to build closer partnerships between India and Victoria. Ten scholarship winners were announced in India during the Super Trade Mission in March 2013.

PROMOTE VICTORIA TO ATTRACT TOURISTS, INVESTORS AND STUDENTS



SPOTTED BY LOCALS CAMPAIGN

Launched in May 2013, the Spotted by Locals campaign, a partnership between Tourism Victoria and Fairfax Media, featured prominent Melburnians with personal connections to regional Victoria. Raising awareness of a range of experiences available in regional Victoria, the participants’ recommendations were published across Fairfax publications and websites and through social media. Video content was available for viewing through a special section on The Age website, iPad and mobile applications.

REGIONAL COOPERATIVE MARKETING INNOVATION FUND

Launched in June 2013, the Department, through Tourism Victoria, is working with all 10 regional tourism boards to support innovative and creative projects, encourage regional collaboration and support projects that align with state-wide priorities and product strengths. Projects that have been supported include the development of social media campaigns, free Wi-Fi networks at key visitor locations, mobile phone applications and mobile-optimised websites.

MAJOR EVENTS

In 2012-13, Victoria’s major events calendar remained one of the most prestigious and successful in the world. The Department continued to work with Victoria Major Events Company, Government departments, event promoters and organisers to attract, promote and leverage the tourism benefits of major events. Events and exhibitions included:

Napoleon: Revolution to Empire and Game Masters

As part of the Melbourne Winter Masterpieces series, the Napoleon: Revolution to Empire exhibition opened at the National Gallery of Victoria in June 2012, attracting 188,729 people over its duration. The Game Masters exhibition, at the Australian Centre for the Moving Image, attracted 102,803 people over the duration of the exhibition. This was the fourth-most-attended exhibition in ACMI’s history, with 23 per cent of visitors coming from outside Victoria.

MASTERCHEF

In August 2012, the Department successfully negotiated to bring MasterChef Australia to Melbourne. MasterChef: The Professionals aired nationally in January 2013, and attracted on average 1.3 million peak viewers per episode in its launch week.

The show highlighted Melbourne and regional Victoria’s culinary excellence, showcasing the state’s fresh produce, innovative chefs, quality restaurants and outstanding winemakers. It featured offsite challenges filmed in key Victorian locations, including Federation Square and featuring a pop-up tram restaurant; while in Mansfield an episode involved the legendary cattlemen of the High Country. Both episodes attracted around one million viewers.

AUSTRALIAN GOURMET TRAVELLER CAMPAIGN

The Department partnered with Australian Gourmet Traveller magazine in a promotion to increase awareness in interstate markets of the quality and range of tourism experiences in regional Victoria.

Five leading Victorian chefs were chosen by the national magazine for their passion, skill and contribution to raising awareness of the culinary riches of their respective regions. The areas included: the Mornington Peninsula, the Yarra Valley, Daylesford, the Grampians and the Victorian High Country.

A dedicated booklet was included in the July edition of Australian Gourmet Traveller and content will also be distributed across the publisher’s website and iPad channels. The Department also negotiated for two reader events to be held, featuring Victorian produce and wine at two exclusive restaurants, in Sydney and Brisbane. There was also a consumer prize promotion with the opportunity to win a trip to Victoria.


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BUSINESS EVENTS AND CONFERENCES

In 2012-13, Melbourne reinforced its reputation as a world-class business events destination by attracting a range of major business events to the state. In the financial year ending June 2013, a partnership between Tourism Victoria, the Melbourne Convention and Exhibition Centre, and Melbourne Convention Bureau held 172 business events (10 of which were supported by the Major Business Events Fund).

In 2012-13, major international conferences held at the Melbourne Convention and Exhibition Centre included:

> World Model United Nations: in March 2013, Melbourne hosted more than 2,000 university students from about 80 countries for a week of debate and cultural exchange at the Harvard WorldMUN. Modelled on the United Nations, students debated issues of global importance at the Melbourne Convention and Exhibition Centre. The Department hosted a traditional barbecue lunch and Bollywood dancers performed a farewell to students

> Australian International Education Conference: in October 2012, Melbourne hosted the annual Australian International Education Conference at the Melbourne Convention and Exhibition Centre. The conference addressed global developments and trends in international education and was attended by about 1,300 national and international delegates

> Amway India Leadership Seminar: in December 2012, Melbourne welcomed 3,890 Amway delegates from India. It was the largest Indian incentive group to be hosted in Australia and the first time Amway India’s top achievers have been able to meet at one convention centre at the same time

Men’s Champions Trophy Hockey Tournament

Held over nine days in December 2012, the 34th edition of the Hockey Champions Trophy for men was hosted at the State Netball Hockey Centre in Melbourne. Featuring the world’s top eight hockey teams, Australia won the tournament, extending its record winning streak at the event to five consecutive titles.

ISAF Sailing World Cup – Melbourne

The International Sailing Federation’s ISAF Sailing World Cup series is the grand slam of Olympic class sailing, featuring the world’s best sailors. The Melbourne event held in December 2012, one of six hosted in different countries, ran over six days and attracted 216 competitors from overseas and interstate.

Indian Film Festival of Melbourne

The second Indian Film Festival of Melbourne ran through May 2013. The festival celebrated the centenary of Indian cinema by opening with Raja Harishchandra, India’s first feature film, 100 years to the day since its first public screening. The festival screened more than 60 films from across India and the subcontinent, including retrospectives, industry masterclasses and free public events.

White Night Melbourne

An all-night arts and cultural celebration, the inaugural White Night event was attended by more than 300,000 people. Cultural institutions recorded significant attendance, including the National Gallery of Victoria, Australian Centre for the Moving Image, and the Arts Centre Melbourne. Videos of the event were distributed through social media and attracted 95,000 Facebook views and produced an estimated Twitter reach of 68,000.

Ironman Asia-Pacific Championship – Melbourne

This long-distance triathlon race featuring a 3.8-kilometre swim in Frankston; a 180-kilometre bike ride on the EastLink motorway; and a 42.2-kilometre run along Port Phillip Bay was held in March 2013. The race attracted 2,200 competitors, including the world’s elite Iron Man distance triathletes.



SUPPORT ORGANISATIONS TO BOOST THEIR PRODUCTIVITY THROUGH INNOVATION

The Government continues to support innovation by providing business with access to information and improving the delivery of Government services. In 2012-13, this included the relaunch of the website at vic.gov.au, giving citizens smarter access to Victorian Government information and services, and making the most of current and innovative ICT. As part of the Victorian Government’s ICT Strategy, the new mobile-friendly vic.gov.au improves the online experience for Victorians through search-driven access to Government information, services, contacts and events, and provides immediate access via an aggregated feed to all Government tweets.

In August 2012, the Government released its DataVic Access Policy, promoting open access to Government data to drive innovation, create new business opportunities and enable new services. In the year to June 2013, the number of Government data-sets available on data.vic.gov.au rose from 99 to almost 700 and will meet the target of more than 1,000 datasets available by September 2013.

The Government also launched Grants Victoria, a new gateway for businesses and individuals to access state grants available to them via vic.gov.au/grants. The website provides information on more than 130 Government grants which can be searched using key words, categories and recently added grants.


INNOVATION VOUCHER PROGRAM

Innovation vouchers can be used by businesses to access external research and development facilities and expertise. During 2012-13, 100 vouchers were awarded under the Innovation Voucher Program, including:

> 62 small and medium-sized businesses were awarded Business Research and Development vouchers with a total value of approximately $1.44 million, to access research and development facilities and expertise. Almost half of these businesses had never collaborated previously

> 38 small and medium-sized businesses and research organisations were awarded Innovation Skills Vouchers with a total value of more than $344,000. Almost one-in-three applicants for skills vouchers were from regional Victoria

Victoria has a strong set of innovation capabilities, with many skilled people, an internationally recognised research sector, cutting-edge technology platforms and infrastructure, and businesses that are global leaders. The Department facilitates collaboration between business and the research sector to help better connect businesses with the knowledge, information, capacity, skills and partners they need to be innovative and generate economic success for Victoria.

This collaboration was facilitated by a range of support programs, including the Collaborative Networks Pilot Program. Designed to bring industry and research networks together to translate recent research and technical innovations into commercial outcomes, the program provides $1.2 million to establish networks in diverse areas of industry, including agriculture and manufacturing; biotechnology and pharmaceuticals; technical textiles and composites industries; and textile, clothing and footwear products for the mining sector.

In 2012-13, 78 companies were supported through the program’s workshops, seminars and industry visits. These activities have led to the development of 10 new projects for industry and research collaboration to develop new products, such as protective apparel for hot and humid climates, anti-bacterial and anti-influenza drug screening, carbon fibre for bridge reconstruction, and the use of carbon dioxide to extend the shelf life of dairy products.

In September 2012, the Government launched two complementary programs to support business innovation – the Innovation Voucher Program and the Technology Voucher Program. These programs aim to build business productivity and competitiveness through the development of new and improved products, processes and services. The diverse range of companies that have already benefited from take-up of vouchers include bluechiip, Biota Pharmaceuticals, Dolphin Products, Carbon Revolution, Albion Sports and Nufarm.

http://www.vic.gov.au


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Sixty-nine suppliers were listed on the business Research and Development voucher supplier directory, linking them with business networks, while 20 suppliers are approved to deliver skills development activities and programs for Innovation Skills vouchers.

TECHNOLOGY VOUCHER PROGRAM

Technology vouchers can be used to explore how cutting-edge technologies, such as biotechnology, small technologies and advanced ICT, can be used to develop new and improved products and processes. During 2012-13, 54 vouchers were awarded under the Technology Voucher Program, including:

> seven companies were awarded a total of more than $1.6 million Technology Implementation vouchers worth up to $250,000 each, for projects including the development of new diagnostic tools for the forensic industry, and a large-scale production of an additive to improve the strength of plastics

> 38 companies were awarded Technology Development vouchers worth approximately $1.8 million in total to assist them in developing or integrating technologies into new or improved products, processes and services. More than half of the companies were in the manufacturing, ICT, pharmaceutical and life science sectors

> nine companies were awarded Technology Student Accelerator Vouchers

During 2012-13, 213 suppliers were listed on the technology voucher supplier directory.

INVESTING IN MANUFACTURING TECHNOLOGY PROGRAM

The Investing in Manufacturing Technology Program assists manufacturers to purchase and integrate new technologies that will improve productivity and competitiveness, strengthen capability and have a transformative impact on their business. The $24.8 million initiative is part of the Victorian Government’s manufacturing strategy, A More Competitive Manufacturing Industry. To date, the Victorian Government has committed $6.6 million in assistance to 40 Victorian manufacturers over two funding rounds. These projects represent $29 million in additional investment into the state, and are expected to create 219 new jobs and transition a further 310 to higher-value roles.

GROWING VICTORIA’S BIOTECHNOLOGY CAPACITY

In April 2013, the Victorian Government launched the Building Global Bridges Program in partnership with the Massachusetts Life Sciences Center. Building Global Bridges is designed to support Victorian life sciences companies to collaborate with similar businesses in Massachusetts in order to accelerate late-stage life sciences research and development projects.

As part of Victoria’s Technology Plan for the Future – Biotechnology, the Department also supported the Victorian Platform Technologies Network in its second phase of activity. Building on the successful networking of biotechnology research and development facilities, the second phase of the network will expand to include other disciplines and industries. New software and a single web-booking system will be rolled out to help industry and academic researchers to better access the network’s facilities through the Australian Research Infrastructure Network Project.



eRESEARCH AGENDA

In November 2012, the Government released its new eResearch Agenda detailing support for the use of advanced ICT in research, committing $3.9 million towards sustainable and mainstream adoption of eResearch. In 2012-13 supported activites included:

> continuation of the Victorian eResearch Strategic Initiative, which provides Victoria’s researchers with advanced ICT services

> the set-up of the VicNode, a new data storage facility for Victorian researchers

DIGITAL FUTURES FUND

The Government’s $11 million Digital Futures Fund supports collaborative projects that transform business practices and deliver productivity benefits to Victorian small and medium-sized businesses through developing ICT solutions. In June 2013, the first funding round saw $900,000 awarded to ICT projects involving more than 17 partners across the warehousing, automotive and manufacturing sectors.

HEALTH MARKET VALIDATION PROGRAM

The Health Market Validation Program is a flagship initiative under Victoria’s Technology Plan for the Future – Biotechnology. In May 2013, the Government announced its support for 12 feasibility study projects with funding of $100,000 per project. The program offers $15 million worth of competitive grants to encourage innovation in healthcare and builds on the structure and success of the Market Validation Program pilot. The Victorian Government is seeking solutions to healthcare challenges through the program, in order to:

> achieve better health outcomes

> improve healthcare service delivery

> deliver economic benefits for Victoria

VICTORIAN FIBRE STRATEGY

Construction of the Victorian Government-funded fibre optic cable network from Geelong to Warrnambool was completed in May 2013. The new fibre network will enable high-capacity broadband services for the public sector and support competition in the backhaul telecommunications market in Victoria’s south-west region. The fibre was rolled out as part of the Victorian Fibre Strategy, with the aim of supporting a range of alternative broadband networks.

BROADBAND ENABLED INNOVATION PROGRAM

The Broadband Enabled Innovation Program is a competitive grants program that provides funding to community, business and government organisations to develop innovative technologies that rely on high-capacity broadband. In 2012-13, round two of the program funded 11 projects across the environment, emergency services, health, education and training, human services and aged care sectors. The Government launched three projects in the first half of 2013:

> the Uni TV trial, which will test the use of internet protocol television as a delivery mechanism for educational content

> the Regional Cystic Fibrosis e-Health and Telemonitoring Program, a pilot project that will remotely monitor cystic fibrosis patients at home and deliver online health services

> the Victorian Stroke Telemedicine – Loddon Mallee Project, which will use high-capacity broadband to link Melbourne-based neurologists with regional doctors treating emergency stroke patients

OPERATIONAL INFRASTRUCTURE SUPPORT PROGRAM

The Government’s Operational Infrastructure Support Program provided $26.1 million to assist 13 Victorian medical research institutes to meet their operational overhead costs. In 2012, this support assisted the institutes in attracting more than $196 million in external competitive research funding to Victoria. The administrative burden on institutes applying for funding from the program was reduced in 2012-13 by substantially reducing the paperwork involved.


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INNOVATION AND SCIENCE AWARENESS SUPPORT

The Victorian Government continues to recognise the valuable contribution made by Victorian researchers through its support of:

> 2013 Premier’s Award for Health and Medical Research: awarded to Dr Aung Ko Win for his research on colorectal cancer

> Innovation Fellowships and Inspiring Students program: the Victorian Endowment for Science, Knowledge and Innovation received additional funding of $1.5 million over three years for Innovation Fellowships, which are designed to bring the world’s top researchers to Victoria. Four Innovation Fellowships were awarded in 2012-13. The program is also working with three outer metropolitan and regional schools to improve student engagement with science and technology

> 2012 Victoria Prize for Science and Innovation and the Victoria Fellowships: the 2012 Victoria Prize for Science and Innovation (Life Sciences) was awarded to Professor Terry Speed (analysis of large data-sets), and the 2012 Victoria Prize in Physical Sciences was awarded to Professor Ana Deletic (water management). The Victorian Government has doubled the number of fellowships to be awarded annually with 12 Victoria fellowships being awarded in 2012-13

VICTORIAN DESIGN INITIATIVES 2012-15

In September 2012, the Government launched the Victorian Design Initiatives 2012-15 Designing the Future to support best practice and excellence in design in Victoria and grow the state’s design business capability. Initiatives commencing in 2012-13 included:

> the Export Design Program, which helps Victorian designers explore new export opportunities and connect them with global markets

> the Design Matters public design program, which celebrates and promotes good design in Victoria. The program includes the Premier’s Design Awards, which recognise and reward Victorian designers and businesses for outstanding applications of design, and agIdeas 2013, held in April 2013, the flagship event of the Melbourne International Design Week

LAUNCH OF THE VICTORIAN GOVERNMENT ICT STRATEGY

In February 2013, the Government launched the Victorian Government ICT Strategy 2013 to 2014. The strategy provides high-level direction on the design and use of information and technology in the Victorian Government to deliver better services.

The principles and objectives of the strategy are now being incorporated into ICT planning. In 2012-13, as part of the strategy, the Department updated and relaunched the Victorian Government web portal at vic.gov.au, creating an online searchable register of Government mobile apps, publicly releasing Government datasets, consolidation of ICT planning and conducting a review of ICT governance.

As foreshadowed by the strategy, the Government created the new role of Chief Technology Advocate in March 2013, and in June 2013 concluded the transfer of whole-of-government ICT responsibilities to the Department.

OPENING OF WALTER AND ELIZA HALL INSTITUTE

In November 2012, the Premier and the Commonwealth Parliamentary Secretary for Health opened the new $185 million Walter and Eliza Hall Institute research facility in Parkville. The redevelopment doubles the institute’s floor space and includes a number of Australian-first research services. This includes a new personalised medicine research centre, volunteer blood donor registry, insectary for breeding malaria-carrying mosquitoes and a clinical translation centre.

http://www.vic.gov.au



PROVIDE MARKET INTELLIGENCE AND ASSISTANCE TO ORGANISATIONS TO MAKE IT EASY TO INVEST IN VICTORIA

> IBM Australia – expansion at Victoria’s Ballarat Technology Park, creating 150 jobs. The new investment will lead to the establishment of an IBM Asia-Pacific Centre of Excellence for Software Testing in Victoria

> Primary Health Care – establishment of a Specialist Diagnostic Services Innovation Centre in Ballarat, creating up to 60 jobs

> China Construction Bank and Industrial and Commercial Bank of China – establishment of branches in Melbourne, creating up to 80 jobs and building on the Victorian Government’s engagement with the Chinese market

> Australian Paper – $90 million de-inking plant in Maryvale


INVESTMENT SUPPORT PROGRAM

In 2012-13, the Government committed $55 million to projects under the Investment Support Program. It is anticipated that these projects will result in $166 million of direct capital expenditure (including $76 million in the packaging sector and $63 million in the food sector) and create 1,521 full-time jobs, including 500 jobs in manufacturing and 450 in information and communication technologies.

In 2012-13, Investment Support Program recipients received an aggregate 94 per cent of the originally contracted grant amounts. These projects collectively achieved 107 per cent of the capital expenditure and 115 per cent of the employment required to receive the full grant payment.

Follow-up survey data on investment projects attracted and facilitated by the Department, and matured in 2012-13, indicated recipients achieved 125 per cent of forecast capital investment and 97 per cent of forecast employment.

In 2012-13, the Government helped facilitate key projects, which are expected to deliver significant investment and jobs for Victoria. Specific achievements include:

> Cotton On Group – stage two global headquarters expansion, creating up to 500 jobs in Geelong North

> Swisse – establishment of new global headquarters in Collingwood, creating up to 140 jobs

> Nine Mile Fresh―– $17 million apple-sorting, grading and packaging facility in Tynong, creating up to 100 jobs

> SAP – establishment of the global software company’s Mission Control Centre in Melbourne

> Mars Australia – $52 million product line expansion in Ballarat, securing more than 400 jobs

> Kraft – Asia-Pacific Confectionery Centre of Excellence, creating up to 100 jobs in Ringwood

> Cipla – establishment of the Australian headquarters of India’s largest pharmaceuticals company

The Department showcased Victoria’s capabilities and status as an attractive investment location to national and international companies looking to expand, diversify and seek specific investment opportunities. In doing so, the Department provided facilitation services to new international investors, continued to encourage additional investment by companies already operating in Victoria, and worked effectively with businesses to overcome challenges to pursuing investment and creating jobs for Victoria.

In 2012-13, the Department facilitated 166 projects totalling more than $2.2 billion, which are expected to generate more than 4,700 jobs for Victoria.

One example is the Kraft Foods Asia Pacific Confectionery Centre of Excellence. The company will establish a world-class, globally competitive research facility at Kraft’s manufacturing site in Ringwood. The centre is a significant boost for Victorian food manufacturing innovations, and will be staffed by the largest research and development team in Australia. The Government’s investment into the facility will expand Kraft’s market from 20 million Australian consumers to a market of 1.6 billion consumers across the Asia-Pacific.

As part of the Government’s ongoing commitment to engaging with business, the Department also helped prospective investors navigate the complex processes for new developments, provided specialist services (including locating suitable development sites) and advice on development approvals and infrastructure services.

In 2012-13, Major Projects Victoria managed approximately $1.9 billion worth of projects in delivery stages and project development for projects notionally worth $5 billion to $10 billion. Contracted projects that contributed to the Department’s performance for 2012-13 include:

> Biosciences Research Centre

> Kew Residential Services

> Melbourne Market Relocation

> Melbourne Park Redevelopment – Eastern Plaza

> Melbourne Park Redevelopment – Western Precinct

> Parkville Gardens

> Southbank Cultural Precinct Redevelopment


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MAJOR PROJECTS

Major Projects Victoria acted as an interface between Government and industry in the development and delivery of projects that facilitate investment, generate jobs and promote innovation in Victoria. In 2012-13, Major Projects Victoria managed development projects such as E-Gate, Federation Square East, the Flinders Station Design Competition and Stage two of the Melbourne Park Redevelopment, a total notionally worth $5 billion to $10 billion.

Further, during 2012-13 Major Projects Victoria managed the delivery of the Melbourne Park Redevelopment, Parkville Gardens, the Metropolitan Fire Brigade’s Future of Organisational Learning and Development facilities project, and the Galleries of Remembrance at the Melbourne Shrine.

A major achievement was the $135.8 million refurbishment of Hamer Hall. Part of the Southbank cultural precinct redevelopment, the project delivered substantial improvements to Hamer Hall and its surroundings, as well as creating better connections between the buildings, Southbank, the city and the river.

Other projects in development or delivery stages being managed by the Department include:

Melbourne Market Relocation Project

The Department has been working closely with the Melbourne Market Authority in order to relocate the market from its current location in West Melbourne to Epping in 2014-15. The relocation will create a pivotal piece of infrastructure for the development of Melbourne’s northern sector as a food-related industrial and logistics hub.

Docklands Studios Melbourne

Docklands Studios Melbourne completed building upgrades that will enhance the studios’ reputation as Victoria’s premier live television facility, offering a flexible, multi-use complex. The new building works, completed in December 2012, were made possible by a $10 million investment by the Victorian Government.

Victorian Coal Development

During 2012-13, the Department was responsible for a whole-of-government approach to drafting the Victorian Coal Development Strategy. The first stage of the strategy, which involves a market engagement process to gauge the industry’s interest in developing brown coal and interest in the Latrobe Valley location, is being prepared.

AUSTRALIAN INTERNATIONAL AIRSHOW AND THE AEROSPACE AND DEFENCE EXPOSITION

The airshow was held at Avalon Airport from 26 February to 3 March 2013. The Department was responsible for the management and delivery of the Victorian Government activities associated with the airshow and the exposition. For Victoria, the Australian International Airshow and the Aerospace and Defence Exposition generated an economic impact gross benefit of $141.6 million and a direct economic impact of $97.09 million. The airshow was attended by 135,138 people and the exposition by 32,671 people.

2012 LAND WARFARE CONFERENCE AND TRADE EXPOSITION

The 2012 Land Warfare Conference and Trade Exposition was held at the Melbourne Exhibition and Conference Centre from 29 October to 2 November 2012. The conference was co-sponsored by the Australian Army and the Defence Science and Technology Organisation. The conference was attended by 1,500 delegates and had more than 250 exhibitors. As a direct result of the conference, more than 140 new business leads and 49 new projects or contracts were generated by local exhibitors at the Victorian Government Pavilion.

SCREEN PRODUCTION ACTIVITY

In 2012-13, Film Victoria supported 54 film, television and digital media projects with funding, delivering an estimated 5,810 jobs and generating a total spend of more than $140 million in the state. Supported projects included feature film Predestination starring Ethan Hawke, and popular Australian television series such as Offspring, Jack Irish, Wentworth and Miss Fisher’s Murder Mysteries.



of the Business Victoria Facebook group, ‘I am a business owner in Victoria’, increasing to more than 2,300 members.

An estimated 163,000 small and medium-sized businesses accessed business.vic.gov.au services more than 11 times during 2012-13. These businesses using the website are 40 per cent more satisfied with the overall services the Government offers than those not using the website.


SUPER TRADE MISSION TO CHINA

The Department’s Super Trade Mission to China in September 2012 was the largest to leave Australia. The Super Trade Mission was led by the then Premier of Victoria, the Hon. Ted Baillieu, and supported by the Hon. Louise Asher, Minister for Innovation, Services and Small Business and Minister for Tourism and Major Events; the Hon. Gordon Rich-Phillips, Minister for Technology and Minister responsible for the Aviation Industry; and the Hon. Richard Dalla-Riva, the then Minister for Employment and Trade.

This mission attracted more than 650 delegates representing 406 organisations seeking to gain a first-hand understanding of China’s market dynamics and showcase their organisations with potential qualified customers, business partners and investors. Participants represented industries of strategic importance to both Victoria and China, including: automotive, aviation and aerospace, cleantech, education, food and beverage, ICT, life sciences, mining equipment and technology services, professional services (including financial, carbon markets and healthcare), sustainable urban design and tourism.

This mission significantly strengthened Victoria’s investment relationship with China and generated positive outcomes for both economies, as well as additional exports and jobs for Victoria. Companies that participated in this mission reported more than $964 million in anticipated additional exports for the 13-24 month period following the mission. A number of significant investments were announced as part of the visit, including the China Construction Bank and the Industrial and Commercial Bank of China establishing a presence in Victoria; and VanceInfo announcing expansion of its Australian and New Zealand headquarters by 60 employees, bringing total employment numbers to 200 by 2014.

A key focus of the Department in 2012-13 was to create more opportunities for Victorian businesses to grow and become more productive and competitive in the global marketplace. During this period, 2,685 businesses participated in export programs facilitated by the Department, including the outbound Trade Mission Program, a major component of the Government’s International Engagement model. The Trade Mission Program supports Victorian companies across a range of industries, including food and beverage, infrastructure (including building and construction), sustainable urban development, aged and health care, automotive, aviation and aerospace, cleantech, ICT, professional services, resources and mining services, defence, equine, water technologies, marine and biotechnology. Ninety-five per cent of Victorian businesses participating in Trade Missions were satisfied with the program.

In 2012-13, the Government supported 26 Trade Missions, including four Super Trade Missions abroad. The Trade Mission Program targeted more than 20 countries, including countries across the Gulf States and Turkey, South-East Asia, North Asia, the Americas and Europe.

Collectively the Trade Mission Program is expected to facilitate more than $1.5 billion in additional exports in the period 13-24 months following the missions, as reported by participating companies.

The Department’s Export Skills Program supported the Trade Mission Program, providing training and information sessions on business skills and international markets to 646 companies across metropolitan and regional Victoria.

The Department operated a range of communications channels to engage with Victorian businesses, including the recently upgraded website, business.vic.gov.au, a central site for information on starting and running a business. The website provides tools to help businesses improve their productivity and reduce the burden of red tape, while assisting with regulatory compliance obligations. The Department also provided news, advice and interactive tools specific to the needs of Victorian businesses through its fortnightly Small Business Victoria Update eNewsletter and through social media. Subscriptions to the Small Business Victoria Update increased from 57,000 in 2011-12 to 70,000 in 2012-13. There were 383,320 social media interactions for 2012-13, with membership

CREATE MORE OPPORTUNITIES FOR VICTORIAN BUSINESSES TO GROW AND BECOME MORE PRODUCTIVE AND COMPETITIVE IN THE GLOBAL MARKETPLACE


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Significant investment announced as part of the mission included:

> Victorian ICT company CPT Global striking a deal with leading technology service provider China eTek

> NICTA’s intended collaboration with Shanghai University on precision farming practices using the FarmNet software platform

> SmartTrans and Double Eagle China agreement to deliver e-shopping payments card technology for China Merchants Bank

> Environmental Protection Authority (EPA) Victoria signing a Memorandum of Understanding with the Xiangtan Environmental Protection Department

> EPA Victoria signing a Memorandum of Understanding with the Jiangsu Government when the latter visited Melbourne in December 2012

SUPER TRADE MISSION TO GULF STATES AND TURKEY

The Gulf States and Turkey represent a major and fast-growing trading region for Victoria. It is now the second-largest value-added export region after South-East Asia. The Super Trade Mission in February 2013 was led by the Hon. Louise Asher, Minister for Innovation, Services and Small Business and Minister for Tourism and Major Events, and supported by the Hon. Peter Walsh, Minister for Agriculture and Food Security and Minister for Water, and the Hon. Dr Denis Napthine, the then Minister for Racing, Minister for Ports, Minister for Major Projects and Minister for Regional Cities.

The Trade Mission attracted 178 organisations, including leading business representatives from food and beverage, defence, marine, education, tourism, professional services, agribusiness, infrastructure and water management industries. The mission also visited Turkey to develop new and wider trade, investment and joint venture opportunities. This mission strengthened Victoria’s investment relationships with the region and generated substantial outcomes for both economies, as well as additional exports and jobs for Victoria. Participating companies reported more than $127 million in anticipated additional exports for the 13-24 month period following the mission.

Companies participated in a range of events and activities, including Gulfood, the world’s largest annual food and beverage trade fair; the International Defence Exhibition and Conference (IDEX) Abu Dhabi; Dubai International Boat Show; the A2 Education Fair; and significant buyer meetings and forums with relevant local government and business representatives. More than 70 Victorian companies participated at Gulfood in Dubai, with 40 Victorian food and beverage companies showcasing their products on the Victorian stand.

SUPER TRADE MISSION TO INDIA

In March 2013, the Super Trade Mission Program visited India, a country with a rapidly growing economy and an important player in the shift of global economic and political influence to Asia. The Trade Mission was led by the Hon. Louise Asher, Minister for Innovation, Services and Small Business and Minister for Tourism and Major Events, and supported by the Hon. Gordon Rich-Phillips, Minister for Technology and Minister responsible for the Aviation Industry and the Hon. Richard Della-Riva, the then Minister for Manufacturing, Exports and Trade. The mission visited Mumbai, Bangalore, Delhi, Chennai, Hyderabad, Pune, Kolkata, Ahmedabad and Gandhinagar. The mission attracted 146 organisations and included 180 delegates representing nine industry sectors, including automotive, aviation and aerospace, biotech, cleantech, education, food and beverage, ICT, infrastructure and tourism. Participating companies reported projected export sales of more than $110 million in the period 13-24 months following the mission.

Key outcomes from the 2013 Super Trade Mission to India include:

> launch of the Victorian Government’s India Strategy ‘From Engagement to Partnership’ in Mumbai

> launch of the 2013 Indian Film Festival of Melbourne program in Mumbai with Indian Film Festival of Melbourne ambassador and one of India’s leading actors, Vidya Balan

> awarding the 2013 Victoria India Doctoral Scholarships to Indian students

> co-hosting a Sustainable Urban Development roundtable with the Federation of Indian Chambers of Commerce and Industry to showcase Victoria’s capabilities in this area



This mission was completed in late June 2013 and company export projections are still to be finalised. However, initial projections of export sales by participating companies are expected to total more than $106 million in the period 13-24 months following the Trade Mission.

As part of the mission, the Premier announced that Victoria would reopen the Indonesia Victorian Government Business Office in Jakarta, signalling a strengthened commitment to the region. The mission is expected to generate substantial outcomes for Victoria, as well as additional investment, exports and jobs for the state, including:

> Baby Royale, as a result of engagement with the Department and participation in this and past Trade Missions, secured a contract to supply its products to about 350 supermarkets in Malaysia. First-year sales of $2 million and $20 million over five years are estimated

> Tune Hotel will open its first hotel in Australia in Melbourne’s CBD in November 2013. The Tune Group will also establish its Australian and New Zealand operational headquarters in Melbourne. This investment is expected to create up to 100 jobs

> Telekomunikasi Indonesia, the country’s largest telecommunications company, chose Melbourne as the site of its first Australian office, announced during the Trade Mission. The new Telkom Australia office will create jobs and partnerships with local businesses in Victoria

> Aircraft Maintenance Services Australia announced an expansion of maintenance operations at Melbourne Airport, creating 100 jobs

> Victorian print management software company, Papercut International, signing a letter of appointment with Bizmann (Singapore) to be the Authorised Solution Centre for South-East Asia

> Streamline Solutions, securing its first customer, Singapore Mercantile Co-Operative, to use its core processing system in Singapore

> Geelong’s Sky Software announcing its collaboration with Singapore-based, Inchone, which will offer Blue Sky to the Singaporean market

> launch of a Melbourne photography exhibition by leading Indian photographer Atul Kasbekar. The exhibition is part of a tourism campaign to promote Melbourne and Victoria as a tourism destination to the Indian tourism industry

> a Victoria India Higher Education Dialogue in New Delhi, a development on a previous education roundtable held during the Super Trade Mission to India in February 2012. The dialogue expanded and strengthened engagement between Victorian and Indian universities

> announcement of 120 new high-tech jobs to be created in Victoria with the expansion of global software services company, SAP

> opening of the new office of we-do-IT in Hyderabad. we-do-IT expects to create 15 new jobs in Victoria as a result of increasing its global capacity

> announcement that Mumbai-based pharmaceutical company Cipla has opened its Australian Headquarters in Melbourne. This marks one of the first investments by the company in a regional office outside India

SUPER TRADE MISSION TO SOUTH-EAST ASIA

In June 2013, the Government conducted a Super Trade Mission to countries within the Association of South-East Asian Nations, Victoria’s largest export market for both goods and services. The mission was led by the Premier of Victoria, the Hon. Dr Denis Napthine and supported by the Hon. Louise Asher, Minister for Innovation Services and Small Business, Minister for Tourism and Major Events and Minister for Employment and Trade; the Hon. Gordon Rich-Phillips, Minister for Technology and Minister responsible for the Aviation Industry; the Hon. Peter Walsh, Minister for Agriculture and Food Security and Minister for Water; and the Hon. Ryan Smith, Minister for Environment and Climate Change. The mission visited Malaysia, Singapore, Indonesia, Vietnam, Thailand and the Philippines. More than 300 organisations participated in the mission from a diverse set of Victorian industries, including ICT, health and aged care, infrastructure, automotive, aviation, tourism, education, wealth and funds management, food and beverage (including wine), and cleantech.


02 STRATEGIC

OBJECTIVES

Australian International Airshow – Aerospace and Defence Exposition

The exposition and airshow was held at Avalon Airport from 26 February to 1 March 2013 and is expected to have generated approximately $20-25 million of direct investment within Victoria. The exposition was attended by 32,671 people.

MANUFACTURING PRODUCTIVITY NETWORKS PROGRAM

Launched in September 2012, the Manufacturing Productivity Networks Program is a major initiative of the Victorian Government’s manufacturing strategy, A More Competitive Manufacturing Industry. The $7.5 million program provides funding to business networks to undertake projects on behalf of their manufacturing member firms.

Twelve networks were contracted to undertake projects and activities that will benefit 508 businesses. Projects and activities include:

> research in additive manufacturing, prototyping, testing and commercialisation of new products

> collaborative approaches for major projects

> opportunities for businesses in clean technology

> productivity audits and supply chain mapping

> digital manufacturing, innovation and leadership seminars

> coaching and peer-to-peer forums

REFORMS TO THE VICTORIAN INDUSTRY PARTICIPATION POLICY

On 1 January 2013, the Government introduced reforms to the Victorian Industry Participation Policy. The policy targets Government procurement where there are contestable goods and services, which are those goods and services with competitive international suppliers and competitive local suppliers. If there are no significant contestable items, bidders no longer need to prepare a Victorian Industry Participation Policy Plan. Instead, only an estimate of total local content is required. A consultation process for grants and design contracts has also been introduced. This process replaces Victorian Industry Participation Policy Plans for grants and ensures design specifications for projects above $3 million in Melbourne or $1 million in regional Victoria do not inadvertently exclude local industry from bidding into a supply chain for Government work.

> Rectifier Technologies Pacific Pty Ltd, together with business partner ADC Power Concept, secured a significant order of unique modular hot swappable power supplies to Petronas Malaysia, for its oil field refining and gas processing plants

TECHNOLOGY TRADE AND INTERNATIONAL PARTNERING PROGRAM

The Technology Trade and International Partnering (TRIP) Program provides grants for export-ready Victorian ICT companies to attend recognised overseas trade shows and events. In 2012-13, 289 grants were provided, generating more than $126 million in anticipated exports over the next 12 months and more than $304 million in anticipated exports over the next 24 months. A separate TRIP program was also available for life sciences companies, which in 2012-13 provided 91 grants and is expected to generate $72.9 million in anticipated exports over the next 12 months and $191.4 million in anticipated exports over the next 24 months.

INBOUND MISSIONS

In addition to the Trade Mission Program abroad, the Department facilitated major inbound missions during 2012-13, to coincide with the following events:

International Food and Beverage Trade Week

During International Food and Beverage Trade Week, the Department hosted a three-day program for targeted, senior international buyers from South-East Asia, China, Japan and South Korea. The events were held to coincide with the Melbourne Food and Wine Festival.

Automotive Week

As part of Automotive Week 2013, the Department led an inbound mission of delegates from South Korea, Germany, Malaysia, China, Indonesia and Thailand. The Department partnered with the Australian Grand Prix Corporation to deliver an Industry and Innovation Precinct at the Australian Grand Prix to promote the local manufacturing industry to prospective business partners and school children.



HAMER SCHOLARSHIPS PROGRAM

The Hamer Scholarships program provides scholarships for Victorian students to undertake intensive Chinese-language study in Victoria’s sister-state, Jiangsu, China. In 2012-13, two selection rounds were held, bringing the total number of Victorians awarded a Hamer Scholarship to 57. The Premier, the Hon. Dr Denis Napthine, announced the expansion of the Hamer Scholarships program to Indonesia while in Jakarta in June 2013.

SMALL BUSINESS WORKSHOPS AND SEMINARS PROGRAM AND GROW YOUR BUSINESS GRANTS

During 2012-13, the Department continued its Small Business Workshops and Seminars Program, including the new Commercialising Your New Idea workshops, to assist businesses at the early stages of innovation, and the Winning Government Business workshops, which help small and medium-sized businesses to access opportunities in Government procurement. Throughout the year, 4,235 small business operators participated in 360 workshops and seminars. The Department also awarded 87 Grow Your Business grants, valued at $1,036,577. The grants help small businesses develop and implement strategies to become internationally competitive.

The Industry Capability Network (Victoria) Ltd assists the Department in the implementation of the reforms, and has developed a new online smart form to make the process easier for businesses and the Government. The Department and ICN Victoria have jointly held information sessions for businesses and for Victorian public sector bodies to raise awareness and understanding of the Victorian Industry Participation Policy and the 2013 reforms. The reforms are contributing towards the Government’s red tape reduction target. It is expected that the number of plans required will drop by at least 20 per cent, and indicative results suggest that this reduction is being exceeded.

STREETLIFE

More than 70 applications from local councils and business or trader associations were received for the first round of Streetlife. Twenty-four councils received $457,730 and eight business/trader associations received $39,340 to assist business improvement projects in local shopping areas across Victoria. More than 60 per cent of round one projects will be delivered in regional Victoria.

SMALL BUSINESS FESTIVAL

The Small Business Festival creates greater awareness and uptake of both Government and private sector small business support services. In 2012, the festival was refocused to place greater emphasis on events being held in regional Victoria and, in particular, at times more convenient for small business owners. More than 32,000 participants received assistance through workshops, conferences, expos, seminars and events, and 67 per cent of attendees agreed the festival increased their awareness of available Victorian Government support services.


02 STRATEGIC

OBJECTIVES

BUSHFIRE AND FLOOD ASSISTANCE

In 2012-13, mentors from the Small Business Mentoring Service assisted small businesses affected by the bushfires in the Alpine Shire region. Mentors also assisted businesses affected by Victoria’s March to June 2012 floods. The Department approved 659 disaster assistance grants valued at $12.5 million, and 46 low-interest loans valued at $2.2 million.

BUSINESS VICTORIA CONTACT CENTRE

The Business Victoria Contact Centre helped Victorian businesses by providing information on: starting a business; assisting with bookings for workshops and events; obtaining the services of a business mentor; and providing referrals to other Victoria Government agencies and industry associations. In 2012-13, the Contact Centre responded to more than 27,800 calls and emails from Victorian small businesses. The Contact Centre handled 5,500 calls for the Office of the Small Business Commissioner in relation to business-to-business disputes and retail leasing.

BUSINESS REGULATION REFORM

In November 2012, the Victorian Business Licencing Information Service and Find a Form service transitioned to the national service delivered by the Council of Australian Government’s Business Online Services Program. This national service, known as the Australian Business Licence Information Service, allows businesses to find all Commonwealth, state and local government licences, permits, registrations, standards and guidelines needed to meet compliance responsibilities.

MOBILE BUSINESS CENTRE

The Department’s Mobile Business Centre visited 103 locations throughout Victoria (52 regional and 51 metropolitan) and delivered more than 703 mentoring sessions (285 regional and 418 metropolitan). In late 2012, it visited Kyabram, Echuca, Shepparton and Warrnambool to deliver free mentoring assistance to businesses affected by the Banksia Financial Group collapse. Mentoring sessions are provided by highly experienced business advisers from the Small Business Mentoring Service. The sessions provide small business operators with specialist industry knowledge, and help them gain insights and ideas in a variety of areas, including marketing, finance, human resources and sales.

RETAIL LEASES AMENDMENT ACT 2012

In 2012, the Retail Leases Act 2003 was amended to reduce red tape for small business owners. The Retail Leases Amendment Act 2012 removed the requirement to notify the Victorian Small Business Commissioner of certain information each time a lease is entered into or renewed. In April 2013, the Retail Leases Regulations were remade following an extensive consultation process and preparation of a Regulatory Impact Statement. The new regulations introduce streamlined disclosure statements and provide greater protection for tenants from interruptions to their business caused by planned works that may be known by the landlord when a lease agreement is signed but not revealed to the tenant.

VICTORIAN SMALL BUSINESS COMMISSIONER―REVIEW OF ROLE AND POWERS

In 2013, 10 years since the introduction of the Victorian Small Business Commissioner, the Government released a consultation paper inviting public comment on ways to enhance the Commissioner’s functions and powers. After taking into account all submissions, the Government will consider amending the Small Business Commissioner Act 2003 to ensure the role and functions of the Commissioner keep pace with current developments in business and law.


03 FINANCIAL REPORT

03 FINANCIAL REPORT


03 FINANCIAL

REPORT

This financial report covers the Department of State Development, Business and Innovation (the Department), formerly the Department of Business and Innovation, as an individual reporting entity and is presented in the Australian currency.

Under section 10(C) of the Public Administration Act 2004 it was gazetted on 9 April 2013 that the name of the Department of Business and Innovation be changed to the Department of State Development, Business and Innovation.

The Department of State Development, Business and Innovation is a Government department of the State of Victoria. The Department was established pursuant to an order made by the Premier under the Administrative Arrangements Act 1983. Its principal address is:

Department of State Development, Business and Innovation 121 Exhibition Street Melbourne VIC 3000

A description of the nature of the Department’s operations and its principal activities are included in the Report of Operations section of the annual report which does not form part of this financial report.

For inquiries in relation to our reporting, please call 9651 9999, or visit the Department’s website at dsdbi.vic.gov.au

INTRODUCTION


03 FINANCIAL REPORT

Comprehensive operating statement 33

Balance sheet 34

Statement of changes in equity 35

Cash flow statement 36

Notes to the financial statements 37

Note 1. Summary of significant accounting policies 37

Note 2. Departmental (controlled) outputs 58

Note 3. Administered (non-controlled) items 62

Note 4. Income from transactions 64

Note 5. Expenses from transactions 66

Note 6. Other economic flows included in net result 68

Note 7. Receivables 69

Note 8. Inventories 69

Note 9. Property, plant and equipment 70

Note 10. Non-financial physical assets classified as held for sale including disposal group and directly associated liabilities 74

Note 11. Investments accounted for using the equity method 74

Note 12. Intangible assets 75

Note 13. Other non-financial assets 76

Note 14. Payables 76

Note 15. Borrowings 76

Note 16. Provisions 77

CONTENTSNote 17. Superannuation 78

Note 18. Other liabilities 78

Note 19. Leases 79

Note 20. Commitments for expenditure 80

Note 21. Contingent assets and contingent liabilities 82

Note 22. Financial instruments 82

Note 23. Cash flow information 89

Note 24. Investments 90

Note 25. Reserves 90

Note 26. Summary of compliance with annual parliamentary and special appropriations 90

Note 27. Ex-Gratia payments 91

Note 28. Annotated income agreements 91

Note 29. Trust account balances 92

Note 30. Responsible persons 95

Note 31. Remuneration of executives and payments to other personnel 96

Note 32. Remuneration of auditors 98

Note 33. Restructure of administrative arrangements 98

Note 34. Glossary of terms 99

Accountable Officer’s and Chief Finance Officer’s Declaration 103

Auditor-General’s report 104


03 FINANCIAL

REPORT

Notes 2013 2012

$’000 $’000

CONTINUING OPERATIONS

Income from transactions

Output appropriations 438,132 435,590

Interest 4(a) 611 1,218

Grants 4(b) 83,495 87,891

Other income 4(c) 98,654 32,814

Total income from transactions 620,892 557,513

EXPENSES FROM TRANSACTIONS

Employee expenses 5(a) (78,271) (75,855)

Depreciation and amortisation 5(b) (4,060) (3,162)

Interest expense 5(c) (47) (40)

Grants and other transfers 5(d) (310,279) (356,787)

Capital asset charge (9,491) (9,451)

Other operating expenses 5(e) (203,940) (128,814)

Total expenses from transactions (606,088) (574,109)

Net result from transactions (net operating balance) 14,804 (16,596)

OTHER ECONOMIC FLOWS INCLUDED IN NET RESULT

Net gain/(loss) on non-financial assets 6(a) (3,887) (7,230)

Net gain/(loss) on financial instruments 6(b) - 3

Other gains/(losses) from other economic flows 6(c) 93 (492)

Total other economic flows included in net result (3,794) (7,719)

Net result 11,010 (24,315)

OTHER ECONOMIC FLOWS – OTHER COMPREHENSIVE INCOME

Items that will not be classified to net result

Changes in physical asset revaluation surplus 25 - (809)

Total other economic flows – other comprehensive income - (809)

Comprehensive result 11,010 (25,124)

The comprehensive operating statement should be read in conjunction with the notes to the financial statements.

COMPREHENSIVE OPERATING STATEMENTfor the financial year ended 30 June 2013


03 FINANCIAL REPORT

Notes 2013 2012

$’000 $’000

ASSETS

Financial assets

Cash and deposits 23 89,229 61,045

Receivables 7 113,626 100,667

Total financial assets 202,855 161,712

Non-financial assets

Inventories 8 23,646 34,760

Non-financial physical assets classified as held for sale, including disposal group assets 10 23 12

Property, plant and equipment 9 526,159 422,827

Investments accounted for using the equity method 11 35,000 35,000

Intangible assets 12 26,490 26,920

Other non-financial assets 13 966 1,016

Total non-financial assets 612,284 520,535

Total assets 815,139 682,247

LIABILITIES

Payables 14 62,672 47,772

Borrowings 15 984 951

Provisions 16 20,876 21,573

Other liabilities 18 194 916

Liabilities directly associated with assets classified as held for sale, including disposal groups

10 23 12

Total liabilities 84,749 71,224

Net assets 730,390 611,023

EQUITY

Accumulated surplus/(deficit) 209,859 198,849

Physical asset revaluation surplus 25 30,970 30,970

Contributed capital 489,561 381,204

Net worth 730,390 611,023

Commitments for expenditure 20

Contingent assets and contingent liabilities 21

The balance sheet should be read in conjunction with the notes to the financial statements.

BALANCE SHEETas at 30 June 2013


03 FINANCIAL

REPORT

NotesPhysical Asset

Revaluation SurplusAccumulated

SurplusContributions by

Owner Total

$’000 $’000 $’000 $’000

Balance at 1 July 2011 31,779 223,164 234,608 489,551

Net result for the year - (24,315) - (24,315)

Other comprehensive income for the year (809) - - (809)

Capital appropriations - - 146,596 146,596

Balance at 30 June 2012 30,970 198,849 381,204 611,023

Net result for the year - 11,010 - 11,010

Capital appropriations - - 120,511 120,511

Transfers (12,154) (12,154)

Balance at 30 June 2013 30,970 209,859 489,561 730,390

The statement of changes in equity should be read in conjunction with the notes to the financial statements.

STATEMENT OF CHANGES IN EQUITYfor the financial year ended 30 June 2013


03 FINANCIAL REPORT

Notes 2013 2012

$’000 $’000

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts

Receipts from Government 522,913 466,815

Receipts from other entities 91,088 29,442

Goods and Services Tax recovered from the ATO 41,754 37,043

Interest received 611 1,218

Total receipts 656,366 534,518

Payments

Payments of grants and other transfers (310,278) (294,846)

Payments to suppliers and employees (305,858) (244,347)

Capital asset charge payments (9,491) (9,451)

Interest and other costs of finance paid (47) (40)

Total payments (625,674) (548,684)

Net cash flows from/(used) in operating activities 23(c) 30,692 (14,166)

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from sale of investments - 27,186

Purchases of non-financial assets (117,440) (147,438)

Sales of non-financial assets 351 352

Payments for intangible assets (2,803) (405)

Net cash flows from/(used in) investing activities (119,892) (120,305)

CASH FLOWS FROM FINANCING ACTIVITIES

Owner contributions by State Government 117,975 146,596

Repayment of finance leases (591) (687)

Net cash flows from/(used in) financing activities 117,384 145,909

Net increase/(decrease) in cash and cash equivalents 28,184 11,438

Cash and cash equivalents at the beginning of the financial year 61,045 49,607

Cash and cash equivalents at the end of the financial year 23(a) 89,229 61,045

Non-cash transactions 23(b)

The cash flow statement should be read in conjunction with the notes to the financial statements.

CASH FLOW STATEMENTfor the financial year ended 30 June 2013


03 FINANCIAL

REPORT

NOTES TO THE FINANCIAL STATEMENTSfor the financial year ended 30 June 2013

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

These annual financial statements represent the audited general purpose financial statements for the Department of State Development, Business and Innovation (the Department) for the period ending 30 June 2013. The purpose of the report is to provide users with information about the Department’s stewardship of resources entrusted to it.

(A) STATEMENT OF COMPLIANCEThese general purpose financial statements have been prepared in accordance with the Financial Management Act 1994 (FMA) and applicable Australian Accounting Standards (AAS), which include interpretations, issued by the Australian Accounting Standards Board (AASB). In particular, they are presented in a manner consistent with the requirements of the AASB 1049 Whole of Government and General Government Sector Financial Reporting.

Where appropriate, those paragraphs of the AASs applicable to not-for-profit entities have been applied.

Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported.

To gain a better understanding of the terminology used in this report, a glossary of terms can be found in Note 34.

These annual financial statements were authorised for issue by the Secretary of the Department on 19 August 2013.

(B) BASIS OF ACCOUNTING PREPARATION AND MEASUREMENT

The accrual basis of accounting has been applied in the preparation of these financial statements whereby assets, liabilities, equity, income and expenses are recognised in the reporting period to which they relate, regardless of when cash is received or paid.

Judgements, estimates and assumptions are required to be made about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on professional judgements derived from historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.

Revisions to accounting estimates are recognised in the period in which the estimate is revised and also in future periods that are affected by the revision. Judgements and assumptions made by management in the application of AASs that have significant effects on the financial statements and estimates relate to:

> the fair value of land, buildings, infrastructure, plant and equipment, (refer to Note 1(P))

> superannuation expense (refer to Note 1(J))

> actuarial assumptions for employee benefit provisions based on likely tenure of existing staff, patterns of leave claims, future salary movements and future discount rates (refer to Note 1(Q))

These financial statements are presented in Australian dollars, and prepared in accordance with the historical cost convention except for:

> non-financial physical assets which, subsequent to acquisition, are measured at a revalued amount being their fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent impairment losses. Revaluations are made with sufficient regularity to ensure that the carrying amounts do not materially differ from their fair value

> the fair value of an asset other than land which is generally based on its depreciated replacement value

> historical cost which is based on the fair values of the consideration given in exchange for assets


03 FINANCIAL REPORT

(C) SCOPE AND PRESENTATION OF FINANCIAL STATEMENTS

Comprehensive operating statementIncome and expenses in the comprehensive operating statement are classified according to whether or not they arise from ‘transactions’ or ‘other economic flows’. This classification is consistent with the whole-of-government reporting format and is allowed under AASB 101 Presentation of financial statements.

‘Transactions’ and ‘other economic flows’ are defined by the Australian System of Government Finance Statistics: Concepts, Sources and Methods 2005 and Amendments to Australian System of Government Finance Statistics, 2005 (ABS Catalogue No. 5514.0) (the GFS manual, refer to Note 34).

‘Transactions’ are those economic flows that are considered to arise as a result of policy decisions, usually interactions between two entities by mutual agreement. Transactions also include flows within an entity, such as depreciation where the owner is simultaneously acting as the owner of the depreciating asset and as the consumer of the service provided by the asset. Taxation is regarded as mutually agreed interactions between the Government and taxpayers. Transactions can be in kind (e.g. assets provided/given free of charge or for nominal consideration) or where the final consideration is cash.

‘Other economic flows’ are changes arising from market re-measurements. They include:

> gains and losses from disposals

> revaluations and impairments of non-current physical and intangible assets

> actuarial gains and losses arising from defined benefit superannuation plans

> fair value changes of financial instruments and agricultural assets

> depletion of natural assets (non-produced) from their use or removal

The net result is equivalent to profit or loss derived in accordance with AASs.

Balance sheetAssets and liabilities are presented in liquidity order with assets aggregated into financial assets and non-financial assets.

Current and non-current assets and liabilities (non-current being those expected to be recovered or settled in more than 12 months after the reporting period) are disclosed in the notes, where relevant.

Statement of changes in equityThe statement of changes in equity presents reconciliations of non-owner and owner changes in equity from the opening balance at the beginning of the reporting period to the closing balance at the end of the reporting period. It also shows separately changes due to amounts recognised in the ‘Comprehensive result’ and amounts recognised in ‘Other economic flows – other movements in equity’ related to ‘Transactions with owner in its capacity as owner’.

Cash flow statementCash flows are classified according to whether or not they arise from operating, investing or financing activities. This classification is consistent with requirements under AASB 107 Statement of Cash Flows.

For cash flow statement presentation purposes, cash and cash equivalents include bank overdrafts, which are included as current borrowings on the balance sheet.

RoundingAmounts in the financial statements have been rounded to the nearest $1,000, unless otherwise stated. Figures in the financial statements may not equate due to rounding. Please refer to the end of Note 34 for a style convention for explanations of minor discrepancies resulting from rounding.

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)


03 FINANCIAL

REPORT

(D) BASIS OF CONSOLIDATIONIn accordance with AASB 127 Consolidated and Separate Financial Statements:

The consolidated financial statements of the Department incorporates assets and liabilities of all reporting entities controlled by the Department as at 30 June 2013, and their income and expenses for that part of the reporting period in which control existed (refer reporting entity Note 1(E)) are controlled and consolidated.

The consolidated financial statements exclude bodies within the Department’s portfolio that are not controlled by the Department and therefore are not consolidated. Bodies and activities that are administered (refer administered items Note 1(F)) are also not controlled and not consolidated.

Where control of an entity is obtained during the financial period, its results are included in the comprehensive operating statement from the date on which control commenced. Where control ceases during a financial period, the entity’s results are included for that part of the period in which control existed. Where dissimilar accounting policies are adopted by entities and their effect is considered material, adjustments are made to ensure consistent policies are adopted in these financial statements.

In the process of preparing consolidated financial statements for the Department, all material transactions and balances between consolidated entities are eliminated.

Consistent with the requirements of AASB 1004 Contributions, contributions by owners (that is, contributed capital and its repayment) are treated as equity transactions and, therefore, do not form part of the income and expenses of the Department.

Jointly controlled assets or operationsInterest in jointly controlled assets or operations are not consolidated by the Department, but are accounted for in the financial statements using the equity method. Under the equity method, the share of the profits or losses of the partnership is recognised in the comprehensive operating statement, and the share of movements in reserves is recognised in reserves (non-owner equity) in both the comprehensive operating statement and the statement of changes in equity. The cumulative post-acquisition changes are adjusted against the

carrying value of the jointly controlled entity. Details relating to the joint venture are set out in Note 11.

The Department has a joint venture interest with Monash University in the Australian Regenerative Medical Institute (ARMI). ARMI was established to construct and operate a facility which will promote Victoria as a global leader in regenerative medical research, foster and develop existing research collaboration on both domestic and overseas projects and provide a major site for both undergraduate and postgraduate training programs.

(E) REPORTING ENTITY The financial statements cover the Department as an individual reporting entity.

The Department is a Government department of the State of Victoria, established pursuant to an order made by the Premier under the Administrative Arrangements Act 1983.

Its principal address is: Department of State Development, Business and Innovation 121 Exhibition Street, Melbourne VIC 3000 Postal address: PO BOX 4509 Melbourne VIC 3001

The Department is an administrative agency acting on behalf of the Crown.

The financial statements include all the controlled activities of the Department. The following statutory body is included in the Department’s reporting entity:

> Victoria Trade and Investment Office Pty Ltd, a wholly owned subsidiary operating in China, was acquired on 1 July 2005 to enable the Department to engage in trade and investment promotion activities in the South-East Asian region.

In addition, the following entities are included in the Department‘s reporting entity:

> Office of the Small Business Commissioner established under the Small Business Commissioner Act 2003

> Major Projects Victoria (MPV) established under Project Development Construction and Management Act 1994 (Vic)

A description of the nature of the Department’s operations and its principal activities is included in the report of operations which does not form part of the financial statements.


03 FINANCIAL REPORT

On 9 April 2013, the Department changed its name to the Department of State Development, Business and Innovation. This restructure also resulted in changes to the Department’s functions and outputs. However, as responsibility for the delivery of the 2012-13 outputs specified in the 2012-13 Budget remained with the transferor Department until 1 July 2013, all associated income, expenses, assets and liabilities are reported in the financial statements of the transferor Department in 2012-13.

Details on the restructure of administrative arrangements can be found in Note 33.

Objectives and fundingThe objectives of the Department during the reporting period were as follows:

> assist businesses in accessing skilled workers to align with Victoria’s industry needs

> provide market intelligence and assistance to organisations to make it easy to invest in Victoria

> create more opportunities for Victorian businesses to grow and become more productive and competitive in the global market place

> promote Victoria to attract tourists, investors and students

> support organisations to boost their productivity through innovation

Information about the Department’s output activities, and the income, expenses, assets and liabilities which are reliably attributable to those output activities, is set out in the output activities schedule (Note 2). Information about income, expenses, assets and liabilities administered by the Department are given in the schedule of administered expenses and income and the schedule of administered assets and liabilities (see Note 3).

(F) ADMINISTERED ITEMSCertain resources are administered by the Department on behalf of the State. While the Department is accountable for the transactions involving administered items, it does not have the discretion to deploy the resources for its own benefit or the achievement of its objectives. Accordingly, transactions and balances relating to administered items are not recognised as Departmental income, expenses, assets or liabilities in the body of the financial statements.


Administered income includes revenue generated for the State for the proceeds from the sale of books from the Victorian Government Bookshop. Administered assets include Government income earned but not yet collected. Administered liabilities include Government expenses incurred but not yet paid.

Except as otherwise disclosed, administered resources are accounted for on an accrual basis using the same accounting policies adopted for recognition of the Departmental items in the financial statements. Both controlled and administered items of the Department are consolidated into the financial statements of the State.

Disclosures related to administered items can be found in Notes 3 and 20.

(G) EVENTS AFTER THE REPORTING PERIOD

Assets, liabilities, income or expenses arise from past transactions or other past events. Where the transactions result from an agreement between the Department and other parties, the transactions are only recognised when the agreement is irrevocable at or before the end of the reporting period. Adjustments are made to amounts recognised in the financial statements for events which occur after the reporting period and before the date the financial statements are authorised for issue, where those events provide information about conditions which existed in the reporting period. Note disclosure is made about events between the end of the reporting period and the date the financial statements are authorised for issue where the events relate conditions which arose after the end of the reporting period and which may have a material impact on the results of subsequent years.

(H) ACCOUNTING FOR THE GOODS AND SERVICES TAX (GST)

Income, expenses, assets and liabilities are recognised net of the amount of associated GST, except where GST incurred is not recoverable from the taxation authority. In this case GST payable is recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the balance sheet.


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Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities, which are recoverable from or payable to the taxation authority, are presented as an operating cash flow.

Commitments and contingent assets and liabilities are also stated exclusive of GST (refer to Note 1(R) and Note 1(S)).

(I) INCOME FROM TRANSACTIONSIncome is recognised to the extent that it is probable that the economic benefits will flow to the Department and the income can be reliably measured at fair value.

Appropriation incomeAppropriated income becomes controlled and is recognised by the Department when it is appropriated from the Consolidated Fund by the Victorian Parliament and applied to the purposes defined under the relevant appropriations Act. Additionally, the Department is permitted under Section 29 of the Financial Management Act 1994 to have certain income annotated to the annual appropriation. The income which forms part of a Section 29 agreement is recognised by the Department and the receipts paid into the Consolidated Fund as an administered item. At the point of income recognition, Section 29 provides for an equivalent amount to be added to the annual appropriation. Examples of receipts which can form part of a Section 29 agreement are Commonwealth specific purpose grants, municipal council special purpose grants, the proceeds from the sale of assets and income from the sale of products and services.

Where applicable, amounts disclosed as income are net of returns, allowances, duties and taxes. All amounts of income over which the Department does not have control are disclosed as administered income in the schedule of administered income and expenses (see Note 3). Income is recognised for each of the Department’s major activities as follows:

Output appropriationsIncome from the outputs the Department provides to Government is recognised when those outputs have been delivered and the relevant Minister has certified delivery of those outputs in accordance with specified performance criteria.

Interest incomeInterest income includes interest received on bank term deposits and other investments and the unwinding over time of the discount on financial assets. Interest income is recognised using the effective interest method which allocates the interest over the relevant period.

Net realised and unrealised gains and losses on the revaluation of investments do not form part of income from transactions, but are reported as part of income from other economic flows in the net result or as unrealised gains and losses taken directly to equity, forming part of the total change in net worth in the comprehensive result.

Trust incomeTrust income received for a specific purpose is deferred and recognised progressively in the comprehensive operating statement in the period in which conditions relating to the payment of the funds to third parties have been met. Major trusts include the Australian Synchrotron Facility.

All other trust income is recognised in the comprehensive operating statement when it is earned by the Department and any unapplied amounts as at the end of the reporting period are recognised in the balance sheet under Other liabilities until the associated expenditure is incurred. The Department recognised revenue from the Commonwealth Government to co-finance the operations of the Australian Synchrotron Facility. Remaining funds are held in the Australian Synchrotron Trust Fund. Accordingly, the Department recognises current and non-current unearned revenue in the notes to the financial statements based on the timing of the estimated future payments to be made.

GrantsIncome from grants (other than contribution by owners) is recognised when the Department gains control over the assets.

Where such grants are payable into the consolidated fund, they are reported as administered income. For reciprocal grants (i.e. equal value is given back by the Department to the provider), the Department is deemed to have assumed control when the Department has satisfied its performance obligations under the terms of the grant.


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For non-reciprocal grants, the Department is deemed to have assumed control when the grant is receivable or received. Conditional grants may be reciprocal or non-reciprocal depending on the terms of the grant.

Fair value of assets and services received free of charge or for nominal considerationContributions of resources received free of charge or for nominal consideration are recognised at fair value when control is obtained over them, irrespective of whether these contributions are subject to restrictions or conditions over their use. Contributions in the form of services are only recognised when a fair value can be reliably determined and the services would have been purchased if not received as a donation.

Other incomeOther income includes trust income, property rental and land development sales for the Kew Residential Services Redevelopment.

Under the Kew Residential Developer Agreement the Department, through Major Projects Victoria, is the proprietor for all building lot sales and as such reports the proceeds from sales as well as the costs of the development.

(J) EXPENSES FROM TRANSACTIONSExpenses from transactions are recognised as they are incurred, and reported in the financial year to which they relate.

Grants and other transfersGrants and other transfers to third parties are recognised as an expense in the reporting period in which they are paid or payable. They include transactions such as grants, subsidies and other transfer payments including but not limited to Tourism Victoria and Film Victoria.

Employee expensesRefer to the section in Note 1(Q) regarding employee benefits.

These expenses include all costs related to employment (other than superannuation which is accounted for separately) including wages and salaries, fringe benefits tax, leave entitlements, redundancy payments and Work Cover premiums.


Superannuation – State superannuation defined benefit plans

The amount recognised in the comprehensive operating statement is the employer contributions for members of both defined benefit and defined contribution superannuation plans that are paid or payable during the reporting period.

The Department of Treasury and Finance (DTF) in their Annual Financial Statements, disclose on behalf of the State, as the sponsoring employer, the net defined benefit cost related to the members of these plans as an administered liability. Refer to DTF’s Annual Financial Statements for more detailed disclosures in relation to these plans.

Depreciation and amortisationAll infrastructure assets, buildings, plant and equipment and other non-financial physical assets (excluding items under operating leases, assets held-for-sale and investment properties) that have finite useful lives are depreciated. Depreciation is generally calculated on a straight-line basis, at rates that allocate the asset’s value, less any estimated residual value, over its estimated useful life. Refer to Note 1(O) for the depreciation policy for leasehold improvements.

The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period, and adjustments made where appropriate.

The following are typical estimated useful lives for the different asset classes for current and prior years.

Asset class Useful life

2013 2012

Buildings 33 to 50 33 to 50

Buildings leasehold 150 150

Infrastructure 90 90

Leasehold improvements 8 to 15 8 to 15

Plant and equipment 3 to 10 3 to 10

Intangible produced assets – software development 1 to 5 -

Core cultural assets, which are considered to have an indefinite life, are not depreciated. Depreciation is not recognised in respect of these assets as their service potential has not, in any material sense, been consumed during the reporting period.


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Intangible produced assets with finite useful lives are depreciated as an expense from transactions on a systematic (typically straight line) basis over the asset’s useful life. Depreciation begins when the asset is available for use, that is, when it is in the location and condition necessary for it to be capable of operating in the manner intended by management.

Intangible assets with indefinite useful lives are not depreciated or amortised, but are tested annually for impairment.

The intangible asset (see Note 12) is deferred expense relating to the development of Parkville Gardens and work in progress for internal software development. The value for the development of Parkville Gardens is progressively recognised (expensed) in line with the sale of properties within the site and is tested for impairment every 12 months.

Interest expenseInterest expenses are recognised as expenses in the period in which they are incurred and mainly relate to finance lease interest charges. Refer to Glossary of terms and style conventions in Note 34 for an explanation of interest expense items.

Capital asset charge The capital asset charge is calculated on the budgeted carrying amount of applicable non-financial physical assets.

Other operating expensesOther operating expenses generally represent the day-to-day running costs incurred in normal operations and include:

Supplies and services

Supplies and services costs are recognised as an expense in the reporting period in which they are incurred. The carrying amounts of any inventories held for distribution are expensed when distributed.

Bad and doubtful debts

Refer to Note 1(N) Impairment of financial assets.

Fair value of assets and services provided free of charge or for nominal consideration

Contributions of resources provided free of charge or for nominal consideration are recognised at their fair value by the transferee when the transferee obtains control over them, irrespective of whether restrictions or conditions are imposed over the use of the contributions, unless received from another government department or agency as a consequence of a restructuring of administrative arrangements. In the latter case, such a transfer will be recognised at carrying value.

Contributions in the form of services are only recognised when a fair value can be reliably determined and the services would have been purchased if not donated.

(K) OTHER ECONOMIC FLOWS INCLUDED IN NET RESULT

Other economic flows measure the change in volume or value of assets or liabilities that do not result from transactions. These include:

Net gain/(loss) on non-financial assetsNet gain/(loss) on non-financial assets and liabilities includes realised and unrealised gains and losses as follows:

Revaluation gains/(losses) of non-financial physical assets

Refer to Note 1(P) Revaluations of non-financial physical assets.

Disposal of non-financial assets

Any gain or loss on the disposal of non-financial assets is recognised at the date of disposal and is determined after deducting from the proceeds the carrying value of the asset at that time.

Amortisation of non-produced intangible assets

Intangible non-produced assets with finite lives are amortised on a systematic (typically straight-line) basis over the asset’s useful life. Amortisation begins when the asset is available for use, that is, when it is in the location and condition necessary for it to be capable of operating in the manner intended by management.

Gain/(Loss) arising from transactions in foreign exchange

Refer to Note 1(U) Foreign Currency.


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Impairment of non-financial assets

Intangible assets with indefinite useful lives (and intangible assets not yet available for use) are tested annually for impairment (as described below) and whenever there is an indication that the asset may be impaired.

All other non-financial assets are assessed annually for indications of impairment, except for:

> non-financial physical assets held for sale (refer Note 10)

> inventories (refer Note 8)

If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, the difference is written off as an other economic flow, except to the extent that the write-down can be debited to an asset revaluation surplus amount applicable to that class of asset.

If there is an indication that there has been a change in the estimate of an asset’s recoverable amount since the last impairment loss was recognised, the carrying amount shall be increased to its recoverable amount. This reversal of the impairment loss occurs only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss has been recognised in prior years.

It is deemed that, in the event of the loss of an asset, the future economic benefits arising from the use of the asset will be replaced unless a specific decision to the contrary has been made. The recoverable amount for most assets is measured at the higher of depreciated replacement cost and fair value less costs to sell. This is due to the fact most assets held by the Department are not primarily used for cash generating purposes, and in the event of their loss, the future economic benefits arising from the use of the asset will be replaced unless a specific decision to the contrary has been made. Recoverable amount for assets held primarily to generate net cash inflows is measured at the higher of the present value of future cash flows expected to be obtained from the asset and fair value less costs to sell.

Refer to Note 1(P) in relation to the recognition and measurement of non-financial assets.


Net gain/(loss) on financial instrumentsNet gain/(loss) on financial instruments includes:

> realised and unrealised gains and losses from revaluations of financial instruments at fair value

> impairment and reversal of impairment for financial instruments at amortised cost (refer to Note 1(M))

> disposals of financial assets and derecognition of financial liabilities

Revaluations of financial instruments at fair value

Refer to Note 1(M) Financial Instruments.

Other gains/(losses) from other economic flowsOther gains/(losses) from other economic flows include the gains or losses from:

> the revaluation of the present value of the long service leave liability due to changes in bond interest rates

> transfer of amounts from the reserves to accumulated surplus or net result due to disposal or derecognition or reclassification

(L) ADMINISTERED INCOME

Grants from the Commonwealth Government and other jurisdictionsThe Department’s administered grants mainly comprise funds provided by the Commonwealth to assist the State Government in meeting general or specific service delivery obligations, primarily for the purpose of aiding in the financing of the operations of the recipient, capital purposes and/or for on-passing to other recipients. The Department also receives grants for on passing to other jurisdictions. The Department does not have control over these grants, and the income is not recognised in the Department’s financial statements. Administered grants are disclosed in the Schedule of Administered items in Note 3.

(M) FINANCIAL INSTRUMENTS Financial instruments arise out of contractual agreements that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Due to the nature of the Department’s activities, certain financial assets and financial liabilities arise under statute rather than a contract.


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Such financial assets and financial liabilities do not meet the definition of financial instruments in AASB 132 Financial instruments: Presentation. For example, statutory receivables arising from taxes, fines and penalties do not meet the definition of financial instruments as they do not arise under contract. However, guarantees issued by the Treasurer on behalf of the Department are financial instruments because, although authorised under statute, the terms and conditions for each financial guarantee may vary and are subject to an agreement.

Where relevant, for note disclosure purposes, a distinction is made between those financial assets and financial liabilities that meet the definition of financial instruments in accordance with AASB 132 and those that do not.

The following refers to financial instruments unless otherwise stated.

Categories of non-derivative financial instruments

Loans and receivables

Loans and receivables are financial instrument assets with fixed and determinable payments that are not quoted on an active market. These assets are initially recognised at fair value plus any directly attributable transaction costs. Subsequent to initial measurement, loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

Loans and receivables category includes cash and deposits (refer to Note 1(N)), term deposits with maturity greater than three months, trade receivables, loans and other receivables, but not statutory receivables.

Financial liabilities at amortised costFinancial instrument liabilities are initially recognised on the date they are originated. They are initially measured at fair value plus any directly attributable costs. Subsequent to initial recognition, these financial instruments are measured at amortised cost with any difference between the initial recognised amount and the redemption value being recognised in profit and loss over the period of the interest-bearing liability, using the effective interest rate method (refer Note 34).

Financial instrument liabilities measured at amortised cost include all of the Department’s contractual payables, deposits held and advances received, and interest-bearing arrangements other than those designated at fair value through profit and loss.

Offsetting financial instruments

Financial instrument assets and liabilities are offset and the net amount presented in the consolidated balance sheet when, and only when, the Department concerned has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

Reclassification of financial instruments

Subsequent to initial recognition and under rare circumstances, non-derivative financial instruments assets that have not been designated at fair value through profit or loss upon recognition may be reclassified out of the fair value through profit or loss category, if they are no longer held for the purpose of selling or repurchasing in the near term.

Financial instrument assets that meet the definition of loans and receivables may be reclassified out of the fair value through profit and loss category into the loans and receivables category, where they would have met the definition of loans and receivables had they not been required to be classified as fair value through profit and loss. In these cases, the financial instrument assets may be reclassified out of the fair value through profit and loss category, if there is the intention and ability to hold them for the foreseeable future or until maturity.

Available-for-sale financial instrument assets that meet the definition of loans and receivables may be reclassified into the loans and receivables category if there is the intention and ability to hold them for the foreseeable future or until maturity.

(N) FINANCIAL ASSETS

Cash and depositsCash and deposits, including cash equivalents, comprise cash on hand and cash at bank, deposits at call and highly liquid investments with an original maturity of three months or less, which are held for the purpose of meeting short-term cash commitments rather than for investment purposes, and which are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value.


03 FINANCIAL REPORT

For cash flow statement presentation purposes, cash and cash equivalents includes bank overdrafts, which are included as borrowings on the balance sheet.

ReceivablesReceivables consist of:

> contractual receivables, such as debtors in relation to goods and services, loans to third parties, accrued investment income, and finance lease receivables (refer to Note 1(O) Leases)

> statutory receivables, such as amounts owing from the Victorian Government and GST input tax credits recoverable

Contractual receivables are classified as financial instruments and categorised as loans and receivables (refer to Note 1(M) Financial Instruments for recognition and measurement). Statutory receivables are recognised and measured similarly to contractual receivables (except for impairment), but are not classified as financial instruments because they do not arise from a contract.

Receivables are subject to impairment testing as described below. A provision for doubtful receivables is recognised when there is objective evidence that the debts may not be collected, and bad debts are written off when identified.

For the measurement principle of receivables, refer to Note 1(M).

Investments and other financial assetsInvestments are classified in the following categories:

> financial assets at fair value through profit or loss

> loans and receivables

> held-to-maturity

> available-for-sale-financial assets

The classification depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition.

Any dividend or interest earned on the financial asset is recognised in the comprehensive operating statement as a transaction.


Derecognition of financial assetsA financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when:

> the rights to receive cash flows from the asset have expired; or

> the Department retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without material delay to a third party under a ‘pass through’ arrangement; or

> the Department has transferred its rights to receive cash flows from the asset and either:

> has transferred substantially all the risks and rewards of the asset; or

> has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

Where the Department has neither transferred nor retained substantially all the risks and rewards or transferred control, the asset is recognised to the extent of the Department’s continuing involvement in the asset.

Impairment of financial assetsAt the end of each reporting period, the Department assesses whether there is objective evidence that a financial asset or group of financial assets is impaired. All financial instrument assets, except those measured at fair value through profit or loss, are subject to annual review for impairment.

Receivables are assessed for bad and doubtful debts on a regular basis. Those bad debts considered as written off by mutual consent are classified as a transaction expense. Bad debts not written off by mutual consent and the allowance for doubtful receivables, are classified as other economic flows in the net result.

In assessing impairment of statutory (non-contractual) financial assets, which are not financial instruments, professional judgement is applied in assessing materiality using estimates, averages and other computational methods in accordance with AASB 136 Impairment of Assets.


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(O) LEASESA lease is a right to use an asset for an agreed period of time in exchange for payment.

Leases are classified at their inception as either operating or finance leases based on the economic substance of the agreement so as to reflect the risks and rewards incidental to ownership.

Leases of infrastructure, property, plant and equipment are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Finance Leases

Department as lessor

Amounts due from lessees under finance leases are recorded as receivables. Finance lease receivables are initially recorded at amounts equal to the present value of the minimum lease payments receivable plus the present value of any unguaranteed residual value expected to accrue at the end of the lease term. Finance lease receipts are apportioned between periodic interest income and reduction of the lease receivable over the term of the lease in order to reflect a constant periodic rate of return on the net investment outstanding in respect of the lease.

Department as lessee

At the commencement of the lease term, finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the lease property or, if lower, the present value of the minimum lease payment, each determined at the inception of the lease. The leased asset is accounted for as a non-financial physical asset and depreciated over the shorter of the estimated useful life of the asset or the term of the lease.

Minimum finance lease payments are apportioned between reduction of the outstanding lease liability, and periodic finance expense which is calculated using the interest rate implicit in the lease and charged directly to the comprehensive operating statement. Contingent rentals associated with finance leases are recognised as an expense in the period in which they are incurred.

Operating Leases

Department as lessor

Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease.

All incentives for the agreement of a new or renewed operating lease are recognised as an integral part of the net consideration agreed for the use of the leased asset, irrespective of the incentive’s nature or form or the timing of payments.

In the event that lease incentives are given to the lessee, the aggregate cost of incentives are recognised as a reduction of rental income over the lease term on a straight line basis, unless another systematic basis is more representative of the time pattern in which economic benefits of the leased asset are diminished.

Department as lessee

Operating lease payments, including any contingent rentals, are recognised as an expense in the comprehensive operating statement on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern of the benefits derived from the use of the leased asset. The leased asset is not recognised in the balance sheet.

All incentives for the agreement of a new or renewed operating lease are recognised as an integral part of the net consideration agreed for the use of the leased asset, irrespective of the incentive’s nature or form or the timing of payments.

In the event that lease incentives are received to enter into operating leases, the aggregate cost of incentives is recognised as a reduction of rental expense over the lease term on a straight-line basis, unless another systematic basis is more representative of the time pattern in which economic benefits of the leased asset are consumed.


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(P) NON-FINANCIAL ASSETS

InventoriesInventories include goods and other property held either for sale, or for distribution at zero or nominal cost, or for consumption in the ordinary course of business operations.

Inventories held for distribution are measured at cost, adjusted for any loss of service potential. All other inventories, including land held for sale, are measured at the lower of cost and net realisable value. Where inventories are acquired for no cost or nominal consideration, they are measured at current replacement cost at the date of acquisition.

Cost includes an appropriate portion of fixed and variable overhead expenses. Cost is assigned to land held for sale (undeveloped, under development and developed) and to other high value, low volume inventory items on a specific identification of cost basis. Cost for all other inventory is measured on the basis of weighted average cost.

Bases used in assessing loss of service potential for inventories held for distribution include current replacement cost and technical or functional obsolescence. Technical obsolescence occurs when an item still functions for some or all of the tasks it was originally acquired to do, but no longer matches existing technologies. Functional obsolescence occurs when an item no longer functions the way it did when it was first acquired.

Non-financial physical assets classified as held for sale, including disposal group assetsNon-financial physical assets (including disposal group assets) are treated as current and classified as held for sale if their carrying amount will be recovered through a sale transaction rather than through continuing use.

This condition is regarded as met only when:

> the asset is available for immediate use in the current condition; and

> the sale is highly probable and the asset’s sale is expected to be completed in 12 months from the date of classification.


These non-financial physical assets, related liabilities and financial assets are measured at the lower of carrying amount and fair value less costs to sell, and are not subject to depreciation or amortisation.

Property, plant and equipmentAll non-financial physical assets are measured initially at cost and subsequently revalued at fair value less accumulated depreciation and impairment. Where an asset is acquired for no or nominal cost, the cost is its fair value at the date of acquisition. Assets transferred as part of a machinery-of-government change are transferred at their carrying amount.

The initial cost for non-financial physical assets under a finance lease (refer to Note 1(T)) is measured at amounts equal to the fair value of the leased asset or, if lower, the present value of the minimum lease payments, each determined at the inception of the lease.

Non-financial physical assets such as Crown land are measured at fair value with regard to the property’s highest and best use after due consideration is made for any legal or constructive restrictions imposed on the asset, public announcements or commitments made in relation to the intended use of the asset. Theoretical opportunities that may be available in relation to the asset are not taken into account until it is virtually certain that the restrictions will no longer apply.

The fair value of cultural assets and collections, heritage assets and other non-financial physical assets (including crown land and infrastructure assets) that the Department intends to preserve because of their unique historical, cultural or environmental attributes, are measured at the replacement cost of the asset less, where applicable, accumulated depreciation (calculated on the basis of such cost to reflect the already consumed or expired future economic benefits of the asset) and any accumulated impairment. These policies and any legislative limitations and restrictions imposed on their use and/or disposal may impact their fair value.


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The fair value of infrastructure systems and plant, equipment and vehicles, is normally determined by reference to the asset’s depreciated replacement cost, or where the infrastructure is held by a for-profit entity, the fair value may be derived from estimates of the present value of future cash flows. For plant, equipment and vehicles, existing depreciated historical cost is generally a reasonable proxy for depreciated replacement cost because of the short lives of the assets concerned.

Certain assets are acquired under finance leases, which may form part of a service concession arrangement. Refer to Notes 1(O) Leases and 1(R) Commitments for more information.

The cost of constructed non-financial physical assets includes the cost of all materials used in construction, direct labour on the project, and an appropriate proportion of variable and fixed overheads.

For the accounting policy on impairment of non-financial physical assets, refer to impairment of non-financial assets under Note 1(K) Impairment of non-financial assets.

Leasehold improvementsThe cost of a leasehold improvement is capitalised as an asset and amortised over the shorter of the remaining term of the lease or the estimated useful life of the improvements

Revaluations of non-financial physical assets Non-financial physical assets are measured at fair value on a cyclical basis, in accordance with the Financial Reporting Directions (FRDs) issued by the Minister for Finance. A full revaluation normally occurs every five years, based upon the asset’s government purpose classification but may occur more frequently if fair value assessments indicate material changes in values. Independent valuers are generally used to conduct these scheduled revaluations. Certain infrastructure assets are revalued using specialised advisors. Any interim revaluations are determined in accordance with the requirements of the FRDs.

Revaluation increases or decreases arise from differences between an asset’s carrying value and fair value.

Net revaluation increases (where the carrying amount of a class of assets is increased as a result of a revaluation) are recognised in ‘Other economic flows – other movements in equity’, and accumulated in equity under the asset revaluation surplus. However, the net revaluation increase is recognised in the net result to the extent that it reverses a net revaluation decrease in respect of the same class of property, plant and equipment previously recognised as an expense (other economic flows) in the net result.

Net revaluation decrease is recognised in ‘Other economic flows – other movements in equity’ to the extent that a credit balance exists in the asset revaluation surplus in respect of the same class of property, plant and equipment. Otherwise, the net revaluation decreases are recognised immediately as other economic flows in the net result. The net revaluation decrease recognised in ‘Other economic flows – other movements in equity’ reduces the amount accumulated in equity under the asset revaluation surplus.

Revaluation increases and decreases relating to individual assets in a class of property, plant and equipment, are offset against one another in that class but are not offset in respect of assets in different classes. Any asset revaluation surplus is not normally transferred to accumulated funds on derecognition of the relevant asset.

Intangible assetsIntangible assets are initially recognised at cost. Subsequently, intangible assets with finite useful lives are carried at cost less accumulated depreciation/amortisation and accumulated impairment losses. Costs incurred subsequent to initial acquisition are capitalised when it is expected that additional future economic benefits will flow to the Department.

When the recognition criteria in AASB 138 Intangible Assets are met, internally generated intangible assets are recognised and measured at cost less accumulated depreciation/amortisation and impairment.

Refer to Note 1(J) Depreciation, Amortisation of non-produced intangible assets and Note 1(K) Impairment of non-financial assets.


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Expenditure on research activities is recognised as an expense in the period in which it is incurred.

An internally-generated intangible asset arising from development (or from the development phase of an internal project) is recognised if, and only if, all of the following are demonstrated:

(a) the technical feasibility of completing the intangible asset so that it will be available for use or sale

(b) an intention to complete the intangible asset and use or sell it

(c) the ability to use or sell the intangible asset;

(d) the intangible asset will generate probable future economic benefits

(e) the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset

(f) the ability to measure reliably the expenditure attributable to the intangible asset during its development

Other non-financial assets

Prepayments

Other non-financial assets include prepayments which represent payments in advance of receipt of goods or services or that are part of expenditure made in one accounting period covering a term extending beyond that period.

(Q) LIABILITIES

PayablesPayables consist of:

> contractual payables, such as accounts payable, and unearned income including deferred income. Accounts payable represent liabilities for goods and services provided to the Department prior to the end of the financial year that are unpaid, and arise when the Department becomes obliged to make future payments in respect of the purchase of those goods and services

> statutory payables, such as goods and services tax and fringe benefits tax payables


Contractual payables are classified as financial instruments and categorised as financial liabilities at amortised cost (refer to Note 1(M)). Statutory payables are recognised and measured similarly to contractual payables, but are not classified as financial instruments and not included in the category of financial liabilities at amortised cost, because they do not arise from a contract.

BorrowingsAll interest bearing liabilities are initially recognised at fair value of the consideration received, less directly attributable transaction costs (refer also to Note 1(O) Leases). The measurement basis subsequent to initial recognition depends on whether the Department has categorised its interest-bearing liabilities as either financial liabilities designated at fair value through profit or loss, or financial liabilities at amortised cost. Any difference between the initial recognised amount and the redemption value is recognised in net result over the period of the borrowing using the effective interest method.

Financial guaranteesPayments that are contingent under financial guarantee contracts are recognised as a liability at the time the guarantee is issued. The liability is initially measured at fair value, and if there is a material increase in the likelihood that the guarantee may have to be exercised, then it is measured at the higher of the amount determined in accordance with AASB 137 Provisions, Contingent Liabilities and Contingent Assets and the amount initially recognised less cumulative amortisation, where appropriate.

In the determination of fair value, consideration is given to factors including the overall capital management/prudential supervision framework in operation, the protection provided by the State Government by way of funding should the probability of default increase, probability of default by the guaranteed party and the likely loss to the Department in the event of default.

The value of loans and other amounts guaranteed by the Treasurer is disclosed in Note 21 Contingent assets and contingent liabilities.


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Derecognition of financial liabilities

A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires.

When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised as an other economic flow in the estimated consolidated comprehensive operating statement.

ProvisionsProvisions are recognised when the Department has a present obligation, the future sacrifice of economic benefits is probable, and the amount of the provision can be measured reliably.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows, using a discount rate that reflects the time value of money and risks specific to the provision.

When some or all of the economic benefits required to settle a provision are expected to be received from a third party, the receivable is recognised as an asset if it is virtually certain that recovery will be received and the amount of the receivable can be measured reliably.

Employee benefitsProvision is made for benefits accruing to employees in respect of wages and salaries, annual leave and long service leave for services rendered to the reporting date.

(i) Wages and salaries, annual leave and sick leave

Liabilities for wages and salaries, including non-monetary benefits, and annual leave, are recognised in the provision for employee benefits, classified as current liabilities. Those liabilities which are expected to be settled within 12 months of the reporting period, are measured at their nominal values. Those liabilities that are not expected to be settled within 12 months are also recognised in the provision for employee benefits as current liabilities, but are measured at present value of the amounts expected to be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement.

(ii) Long service leaveLiability for long service leave (LSL) is recognised in the provision for employee benefits.

Unconditional LSL is disclosed in the notes to the financial statements as a current liability, even where the Department does not expect to settle the liability within 12 months because it will not have the unconditional right to defer the settlement of the entitlement should an employee take leave within 12 months.

The components of this current LSL liability are measured at:

> nominal value – component that the Department expects to settle within 12 months

> present value – component that the Department does not expect to settle within 12 months

Conditional LSL is disclosed as a non-current liability. There is an unconditional right to defer the settlement of the entitlement until the employee has completed the requisite years of service. This non-current LSL liability is measured at present value.

Any gain or loss following revaluation of the present value of non-current LSL liability is recognised as a transaction, except to the extent that a gain or loss arises due to changes in bond interest rates for which it is then recognised as an other economic flow (refer to Note 1(K)).


03 FINANCIAL REPORT


(iii) Termination benefitsTermination benefits are payable when employment is terminated before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. The Department recognises termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after the end of the reporting period are discounted to present value.

EMPLOYEE BENEFITS ON-COSTSEmployee benefits on-costs such as payroll tax, workers compensation and superannuation are recognised separately from the provision of employee benefits.

(R) COMMITMENTSCommitments for future expenditure include operating and capital commitments arising from contracts. These commitments are disclosed by way of a note (refer to Note 20 Commitments for expenditure) at their nominal value and exclusive of the goods and services tax (GST) payable. In addition, where it is considered appropriate and provides additional relevant information to users, the net present values of significant individual projects are stated. These future expenditures cease to be disclosed as commitments once the related liabilities are recognised in the balance sheet.

(S) CONTINGENT ASSETS AND CONTINGENT LIABILITIES

Contingent assets and contingent liabilities are not recognised in the balance sheet, but are disclosed by way of a note (refer Note 21 Contingent assets and contingent liabilities) and, if quantifiable, are measured at nominal value. Contingent assets and liabilities are presented exclusive of GST receivable or payable respectively.

(T) EQUITY

Contributions by ownersAdditions to net assets which have been designated as contributions by owners are recognised as contributed capital. Other transfers that are in the nature of contributions or distributions have also been designated as contributions by owners.

Transfers of net assets arising from administrative restructurings are treated as distributions to or contributions by owners. Transfers of net liabilities arising from administrative restructurings are treated as distributions to owners.

(U) FOREIGN CURRENCYAll foreign currency transactions during the financial year are brought to account using the exchange rate in effect at the date of the transaction. Foreign monetary items existing at the date of the end of the reporting period are translated at the closing rate at the date of the end of the reporting period. Non-monetary assets carried at fair value that are denominated in foreign currencies are translated to the functional currency at the rates prevailing at the date when the fair value was determined.

Foreign currency translation differences are recognised in other economic flows and accumulated in a separate component of equity, in the period in which they arise.

(V) AASs ISSUED THAT ARE NOT YET EFFECTIVE

Certain new AASs have been published that are not mandatory for the 30 June 2013 reporting period. The Department of Treasury and Finance assesses the impact of all these new standards and advises Department of their applicability and early adoption where applicable. In addition, the Department undertakes a detailed assessment of the impact on its operations of transitional Australian Accounting Standards.


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As at 30 June 2013, the following AASs have been issued by the AASB but not yet effective. They become effective for the first financial statements for reporting periods commencing after the stated operative dates as follows:

STANDARD / INTERPRETATION

SUMMARY APPLICABLE FOR ANNUAL REPORTING PERIODS BEGINNING ON

IMPACT ON DEPARTMENTAL FINANCIAL STATEMENTS

AASB 9

Financial Statements

The Standard simplifies requirements for the classification and measurement of financial assets resulting from Phase 1 of the IASB’s project to replace IAS 39 Financial Instruments: recognition and measurement (AASB 139 Financial Instruments: Recognition and Measurement).

Beginning

1 January 2015

No material impact on the Department

AASB 10

Consolidated Financial Statements

This Standard establishes principles for the presentation and preparation of consolidated financial statements when an entity controls one or more other entities and supersedes those requirements in AASB 127 Consolidated and Separate Financial Statements and Interpretation 112 Consolidation – Special Purpose Entities.

The AASB has deferred the mandatory application date from

1 January 2013 to 1 January 2014

Details of impact being assessed.

AASB 11

Joint ventures

This Standard requires entities that have an interest in arrangements that are controlled jointly to assess whether the arrangement is a joint operation or joint venture. AASB 11 shall be applied for an arrangement that is a joint operation. It also replaces parts of requirements in AASB 131 Interests in Joint Ventures.




AASB 12

Disclosure of Interests in other Entities

This Standard requires disclosure of information that enables users of financial statements to evaluate the nature of, and risks associated with interests in other entities and the effects of those interests on the financial statements. This Standard replaces the disclosure requirements in AASB 127 and AASB 131.




AASB 13

Fair Value Measurement

This Standard outlines the requirements for measuring the fair value of assets and liabilities and replaces the existing fair value definition and guidance in other ASSs. AASB 13 includes a fair value hierarchy which ranks the valuation technique inputs into 3 levels using unadjusted quoted prices in active markets for identical assets or liabilities; other observable inputs; and unobservable inputs.

Beginning

1 January 2013


AASB 119

Employee Benefits

This Standard streamlines the guidance for measuring assets and liabilities at fair value as well as the resultant disclosure requirements. The Standard also clarifies the requirements in determining the short-term employee benefits. Currently all annual leave provisions are classified as short-term employee benefits and measured on an undiscounted basis. However, the amendments specify that classification of short-term employee benefits would be appropriate only when benefits are expected to be settled wholly within 12 months of the end of the annual financial period in which employees render the related services. Therefore, for the proportion of annual leave provisions that is not expected to be settled within 12 months, that proportion should be classified as ‘long-term benefits’ and measured on a discounted basis similar to ‘long-service leave’.

Beginning

1 January 2013

No material impact on the Department but is expected to have a material impact on the State’s operating surplus with the calculation of the superannuation interest expense.

The impact on the Department of the change to annual leave provision is to be evaluated.

AASB 127

Separate Financial Statements

This revised Standard prescribes the accounting and disclosure requirements for investments in subsidiaries, joint ventures and associates when an entity prepares separate financial statements.



Not-for-profit entities are not permitted to apply this standard and the AASB is assessing the applicability of principles in a not-for-profit context.

AASB 128

Investments in Associates and Joint Ventures

This revised Standard sets out the requirements for the application of the equity method when accounting for investments in associates and joint ventures.




AASB 1053

Application of Tiers of Australian Accounting Standards

This Standard establishes a differential financial reporting framework consisting of 2 tiers of reporting requirements for preparing general purpose financial statements.

Beginning

1 July 2013

No impact on the Department.


03 FINANCIAL REPORT




AASB 1055

Budgetary Reporting

This Standard sets out budgetary reporting requirements for not-for-profit entities within the GGS, and, together with AASB 2013-1 Amendments to AASB 1049 – Relocation of Budgetary Reporting Requirements, relocates the corresponding budgetary reporting requirements from AASB 1049.

Beginning

1 January 2014


AASB 2009-11

Amendments to Australian Accounting Standards arising from AASB 9 [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 121, 127, 128, 131, 132, 136, 139, 1023 and 1038 and Interpretations 10 and 12]

This gives effect to consequential changes arising from the issuance of AASB 9. Beginning

1 January 2013


AASB 2010-2

Amendments to Australian Accounting Standards arising from reduced Disclosure Requirements

This Standard makes amendments to many Australian Accounting Standards, including interpretations, to introduce reduced disclosure requirements to the pronouncements for application by certain types of entities.

Beginning

1 January 2013

Does not affect financial measurement or recognition, so is not expected to have any impact on financial result or position. May reduce some note disclosures in financial statements.

AASB 2010-7

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

These consequential amendments are in relation to the introduction of AASB9. Beginning

1 January 2013


AASB 2010-10

Further Amendments to Australian Accounting Standards – Removal of Fixed dates for First time Adopters (AASB 2009-11 & AASB 2010-7)

This amendment provides relief for first-time adopters of Australian Accounting Standards from having to reconstruct transactions that occurred before their date of transition to Australian Accounting Standards.

Beginning

1 January 2013


AASB 2011-2

Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project – Reduced Disclosure Requirements [AASB 101 & AASB 1054]

The objective of this amendment is to include some additional disclosure from the Trans-Tasman Convergence Project and to reduce disclosure requirements for entities preparing general purpose financial statements under Australian Accounting Standards – Reduced Disclosure Requirements.

Beginning

1 July 2013


AASB 2011-4

Amendments to Australian Accounting Standards to Remove Individual Key Management Personnel Disclosure Requirements.

AASB 124 – remove the key management personnel disclosure requirements. Beginning

1 January 2013


AASB 2011-6

Amendments to Australian Accounting Standards – Extending Relief from Consolidation, the Equity Method and Proportionate Consolidation AASB 127, AASB 128 and AASB 131– Reduced Disclosure Requirements (AASB 124).

The amendments to the prior AASB 2011-5 to reflect reduced disclosure requirements.

Beginning

1 January 2013




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AASB 2011-7

Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards AASB 1, 2, 3, 5, 7, 9, 2009-11, 101, 107, 112, 118, 121, 124, 132, 133, 136, 138, 139, 1023 & 1038 and Interpretations 5, 9, 16 & 17.

Applicable only when AASB 10, 11, 12, 127 and 128 are applied. Some amendments will result in accounting changes for presentation, recognition or measurement purposes, while other amendments will relate to terminology and editorial changes.

Beginning

1 January 2013

Terminology and editorial changes. Minor impact on the Department.

AASB 2011-8

Amendments to Australian Accounting Standards arising from AASB 13 – AASB 1, 2, 3, 4, 5, 7, 9, 2009-11, 2010-7, 101, 102, 108, 110, 116, 117, 118, 119, 120, 121, 128, 131, 132, 133, 134, 136, 138, 139, 140, 141, 1004, 1023 & 1038 and Interpretations 2, 4, 12, 13, 14, 17, 19, 131 & 132.

Applicable only when AASB 13 is applied. It replaces the existing definition and fair value guidance in other accounting standards and interpretations.

Beginning

1 January 2013


AASB 2011-10

Amendments to Australian Accounting Standards arising from AASB 119 (September 2011) – AASB 1, AASB 8, AASB 101, AASB 124, AASB 134, AASB 1049 & AASB 2011-8 and Interpretation 14.

Applied only when AASB 119 – employee benefits is applied. Some amendments will result in accounting changes for presentation, recognition or measurement purposes, while other amendments will relate to terminology and editorial changes.

Beginning

1 January 2013

Terminology and editorial changes. Minor impact on the Department.

AASB 2011-11

Amendments to AASB 119 (September 2011) arising from Reduced Disclosure Requirements

Applicable only if AASB 1053 (Application of Tiers of AAS) and AASB 119 (Employee benefits) are applied to incorporate reduced disclosure requirements into the standards for entities applying Tier 2 requirements.

Beginning

1 January 2013


AASB 2011-12

Amendments to Australian Accounting Standards arising from Interpretation 20 (AASB 1)

The standard is resulting from the issuance of IFRIC 20 for stripping costs in the production phase of a surface mine.

Beginning

1 January 2013


AASB 2012-1

Amendments to Australian Accounting Standards – Fair Value Measurement – Reduced Disclosure Requirements – AASB 3, AASB 7, AASB 13, AASB 140 & AASB 141.

Applicable only if AASB 1053 (Application of Tiers of AAS) and AASB 119 (Employee benefits) are applied to incorporate reduced disclosure requirements into the standards for entities applying Tier 2 requirements.

Beginning

1 January 2013


AASB 2012-2

Amendments to Australian Accounting Standards – Disclosures – Offsetting Financial Assets and Financial Liabilities [AASB 132]

This Standard amends the required disclosures in AASB 7 to include information that will enable users of an entity’s financial statements to evaluate the effect or potential effect of netting arrangements, including rights of set-off associated with the entity’s recognised financial assets and recognised financial liabilities, on the entity’s financial position.

Beginning

1 January 2014

Minimal impact on the Department.

AASB 2012-3

Amendments to Australian Accounting Standards – Offsetting Financial Assets and Financial Liabilities.

This Standard adds application guidance to AASB 132 to address inconsistencies identified in applying some of the offsetting criteria of AASB 132, including clarifying the meaning of “currently has a legally enforceable right of set-off” and that some gross settlement systems may be considered equivalent to net settlement.

Beginning

1 January 2014



03 FINANCIAL REPORT




AASB 2012-4

Amendments to Australian Accounting Standards – Government Loans

This Standard adds an exception to the retrospective application of Australian Accounting Standards to require that first-time adopters apply the requirements in AASB 139 and AASB 120.

Beginning

1 January 2013


AASB 2012-5

Amendments to Australian Accounting Standards arising from Annual Improvements 2009–2011 Cycle

The objective of this Standard is to make amendments to: (a) AASB 1 First-time Adoption of Australian Accounting Standards; (b) AASB 101 Presentation of Financial Statements; (c) AASB 116 Property, Plant and Equipment; (d) AASB 132 Financial Instruments: Presentation; (e) AASB 134 Interim Financial Reporting; and (f) Interpretation 2 Members’ Shares in Co-operative Entities and Similar Instruments; as a consequence of the issuance of International Financial Reporting Standard Annual Improvements to IFRSs 2009 – 2011 Cycle by the International Accounting Standards Board in May 2012.

Beginning

1 January 2013


AASB 2012-7

Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements [AASB 7, 12, 101 & 127]

This Standard adds to or amends the Australian Accounting Standards – Reduced Disclosure Requirements for AASB 7 Financial Instruments: Disclosures, AASB 12 Disclosure of Interests in Other Entities, AASB 101 Presentation of Financial Statements and AASB 127 Separate Financial Statements. AASB 1053 Application of Tiers of Australian Accounting Standards provides further information regarding the differential reporting framework and the two tiers of reporting requirements for preparing general purpose financial statements.

Beginning

1 July 2013


AASB 2012-9

Amendment to AASB 1048 arising from the Withdrawal of Australian Interpretation 1039

This Standard is to make an amendment to AASB 1048 Interpretation of Standards as a consequence of the withdrawal of Australian Interpretation 1039 Substantive Enactment of Major Tax Bills in Australia.

Beginning

1 January 2013


AASB 2012-10

Amendments to Australian Accounting Standards – Transition Guidance and Other Amendments [AASB 1, 5, 7, 8, 10, 11, 12, 13, 101, 102,

108, 112, 118, 119, 127, 128, 132, 133, 134, 137, 1023, 1038, 1039, 1049 & 2011-7 and Interpretation 12]

This Standard and related Standards revise the transition guidance relevant to the initial application of those Standards, to clarify the circumstances in which adjustments to an entity’s previous accounting for its involvement with other entities are required and the timing of such adjustments. These amendments result from proposals issued in AASB Exposure Draft ED 224 Transition Guidance (December 2011). Further amendments to AASB 10 and related Standards revise their application paragraphs, so that they apply mandatorily to not-for-profit entities for annual reporting periods beginning on or after 1 January 2014, with early application permitted for not-for-profit entities only from 1 January 2013. The application of the amendments set out in AASB 2011-7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards is similarly amended.

Beginning

1 January 2013

Details of impact to be assessed

AASB 2012-11

Amendments to Australian Accounting Standards – Reduced Disclosure Requirements and Other Amendments

The Standard makes various editorial corrections to Australian Accounting Standards – Reduced Disclosure Requirements (Tier 2).

Beginning

1 July 2013


AASB 2013-1

Amendments to AASB 1049 – Relocation of Budgetary Reporting Requirements

This Standard makes amendments to AASB 1049 to remove the requirements relating to the disclosure of budgetary information specified in that Standard for whole-of-governments and General Government Sectors (GGSs), as a consequence of the issuance of AASB 1055 Budgetary Reporting.

Beginning

1 July 2014

Details of impact to be assessed.

AASB 2013-2

Amendments to AASB 1038 – Regulatory Capital

This Standard makes amendments to AASB 1038 as a consequence of changes to the Australian Prudential Regulation Authority’s reporting requirements relating to life insurers, particularly Prudential Standard LPS 110 Capital Adequacy, applicable from 1 January 2013. Primarily the amendments align terminology by changing references to ‘solvency’ in AASB 1038 to ‘capital’ and remove a related explanatory paragraph.

Beginning

31 March 2013




03 FINANCIAL

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AASB 2013-3

Amendments to AASB 136 – Recoverable Amount Disclosures for Non-Financial Assets

This Standard amends the disclosure requirements in AASB 136. The amendments include the requirement to disclose additional information about the fair value measurement when the recoverable amount of impaired assets is based on fair value less costs of disposal. In addition, a further requirement has been included to disclose the discount rates that have been used in the current and previous measurements if the recoverable amount of impaired assets based on fair value less costs of disposal was measured using a present value technique. The intention of this amendment is to harmonise the disclosure requirements for fair value less costs of disposal and value in use when present value techniques are used to measure the recoverable amount of impaired assets.

Beginning

1 January 2014


AASB 2013-4

Amendments to Australian Accounting Standards – Novation of Derivatives and Continuation of hedge Accounting

This Standard makes amendments to AASB 139 to permit the continuation of hedge accounting in circumstances where a derivative, which has been designated as a hedging instrument, is novated from one counterparty to a central counterparty as a consequence of laws or regulations.

Beginning

1 January 2014


AASB Interpretation 20

Stripping Costs in the Production Phase of a Surface Mine

This Interpretation clarifies when production stripping costs should lead to the recognition of an asset and how that asset should be initially and subsequently measured.

Beginning

1 July 2013


AASB Interpretation 21 – Levies

This Interpretation clarifies the circumstances under which a liability to pay a levy imposed by a government should be recognised, and whether that liability should be recognised in full at a specific date or progressively over a period of time.

Beginning

1 January 2014



03 FINANCIAL REPORT

NOTE 2. DEPARTMENTAL (CONTROLLED) OUTPUTS

A description of each output group of the Department during the year ended 30 June 2013, together with the objectives of each output group are summarised below.

TRADE AND EXPORT FACILITATION

Description of OutputThe primary strategic objective of this output group is to promote business growth opportunities by providing development assistance and facilitation services to support increased productivity and competitiveness.

ObjectivesThis output creates more opportunities for Victorian businesses to grow and become more productive and competitive in the global market place.

This is achieved by promoting Victoria in the global economy as a world class investment location and by identifying, targeting and facilitating strategically important investments. Utilising the Victorian Government Business Offices network, the Department provides quality services to overseas investor clients.

INNOVATION AND TECHNOLOGY

Description of OutputThe primary strategic objective of this output group is to support innovation by providing access to information and building capacity for the development and effective use of new practices and technologies to support increased productivity and competitiveness in Victoria.

ObjectivesThis output supports organisations to boost their productivity through innovation.

This is achieved by investing in strategic knowledge industries, infrastructure and services and fostering the adoption and commercialisation of ideas and research. The Department also provides market intelligence information and research on economic and industry trends, facilitation and support activities, and initiatives to foster a skilled and productive workforce.

TOURISM AND MARKETING

Description of OutputThe primary strategic objective of this output group is to facilitate employment, and longer term economic benefits of tourism, investment and international students coming to Victoria by positioning and marketing the State as a competitive tourism, investment and study destination.

ObjectivesThis output promotes Victoria to attract tourists, investors and students.

This is achieved by positioning Victoria as a distinct, competitive and fair business environment, exporter and tourist destination and by promoting and marketing these characteristics nationally and overseas. Tourism Victoria supports and develops events for Victoria to maximise economic and tourism benefits and maximises the dissemination of tourism information about Victoria through online channels.


Description of OutputThe primary strategic objective of this output group is to provide programs to link business workforce needs with skilled migration and untapped labour sources to meet Victoria’s requirements.

ObjectivesThis output assists businesses in accessing skilled workers to align with Victoria’s industry needs.

The Department through its policies and employment programs, responds to labour and skill needs of industry and links disadvantaged job seekers and migrants to jobs.


03 FINANCIAL

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INVESTMENT ATTRACTION, FACILITATION AND MAJOR PROJECTS

Description of OutputThe primary strategic objective of this output group is to provide investment attraction and facilitation assistance to attract new international investment and encourage additional investment by businesses already operating in Victoria. In addition, it also supports an increased share of national business investment in Victoria through the management and delivery of nominated development projects.

ObjectivesThis output provides market intelligence and assistance to organisations to make it easy to invest in Victoria.

This output provides the Government with management and delivery of nominated public construction and land development projects, the co-ordination of development projects and associated feasibility studies.

SMALL BUSINESS ASSISTANCE

Description of OutputThe primary strategic objective of this output group is to provide business information, advisory and referral services that contribute to the growth and development of small- and medium-sized enterprises across Victoria.

ObjectivesThis output creates more opportunities for Victorian businesses to grow and become more productive and competitive in the global market place.


03 FINANCIAL REPORT

Schedule A – Controlled income and expenses for the year ended 30 June 2013







DEPARTMENTAL TOTAL

2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Continuing operations


Output appropriations 33,743 37,697 149,753 156,712 74,034 77,318 14,318 16,512 135,543 108,518 30,741 38,832 438,132 435,590

Interest - - 91 557 - - - - 520 661 - - 611 1,218

Grants - 502 6,300 10,961 74,755 74,176 440 509 2,000 396 - 1,348 83,495 87,891

Other income 195 155 3,022 806 58 (9) 565 2 93,084 30,465 1,730 1,395 98,654 32,814

Total Income from transactions 33,938 38,354 159,166 169,036 148,847 151,485 15,323 17,023 231,147 140,040 32,471 41,575 620,892 557,513

Expenses from transactions

Employee expenses (8,608) (8,593) (17,966) (17,480) (8,069) (7,203) (5,476) (5,119) (28,041) (27,344) (10,111) (10,116) (78,271) (75,855)

Depreciation and amortisation (186) (192) (939) (956) (446) (453) (90) (95) (2,153) (1,217) (246) (249) (4,060) (3,162)

Interest expense (7) (6) (9) (8) (6) (5) (4) (4) (14) (10) (7) (6) (47) (40)

Grants and other transfers (7,312) (15,368) (89,522) (136,884) (126,525) (136,225) (5,816) (6,986) (79,153) (58,767) (1,951) (2,558) (310,279) (356,787)

Capital asset charge (159) (159) (3,363) (3,202) (1,705) (1,762) (81) (82) (3,961) (4,024) (222) (223) (9,491) (9,451)

Other operating expenses (15,263) (9,769) (24,953) (22,967) (14,541) (10,122) (4,913) (4,638) (124,098) (51,433) (20,172) (29,884) (203,940) (128,814)

Total expenses from transactions (31,535) (34,087) (136,752) (181,497) (151,292) (155,770) (16,380) (16,924) (237,420) (142,795) (32,709) (43,036) (606,088) (574,109)

Net result from transactions (net operating balance) 2,403 4,267 22,414 (12,461) (2,445) (4,285) (1,057) 99 (6,273) (2,755) (238) (1,461) 14,804 (16,596)

Other economic flows included in net result

Net gain/(loss) on non-financial assets 2 (19) (729) (100) (1) (49) - (10) (3,234) (7,040) 75 (13) (3,887) (7,230)

Net gain/(loss) on financial instruments 2 - 10 3 5 - (26) - 7 - 3 - - 3

Other gains/(losses) from other economic flows 7 (32) 35 (167) 17 (81) 3 (16) 22 (151) 9 (45) 93 (492)

Total other economic flows included in net result 11 (51) (684) (264) 21 (130) (23) (26) (3,205) (7,191) 87 (58) (3,794) (7,719)

Net result 2,414 4,216 21,730 (12,725) (2,424) (4,415) (1,080) 73 (9,478) (9,946) (151) (1,519) 11,010 (24,315)

Other economic flows – other comprehensive income

Items that will not be reclassified to net result

Changes in physical asset revaluation surplus - 420 - 2,188 - 1,066 - 216 - (5,288) - 589 - (809)

Total other economic flows – other comprehensive income - 420 - 2,188 - 1,066 - 216 - (5,288) - 589 - (809)

Comprehensive result 2,414 4,636 21,730 (10,537) (2,424) (3,349) (1,080) 289 (9,478) (15,234) (151) (930) 11,010 (25,124)

The Department to improve the quality of its objectives and outputs to better reflect its service delivery ambitions has a new set of Departmental outputs. Comparatives have been adjusted in line with the change.

NOTE 2. DEPARTMENTAL (CONTROLLED) OUTPUTS (CONTINUED)


03 FINANCIAL

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Schedule A – Controlled income and expenses for the year ended 30 June 2013







DEPARTMENTAL TOTAL

2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Continuing operations


Output appropriations 33,743 37,697 149,753 156,712 74,034 77,318 14,318 16,512 135,543 108,518 30,741 38,832 438,132 435,590

Interest - - 91 557 - - - - 520 661 - - 611 1,218

Grants - 502 6,300 10,961 74,755 74,176 440 509 2,000 396 - 1,348 83,495 87,891

Other income 195 155 3,022 806 58 (9) 565 2 93,084 30,465 1,730 1,395 98,654 32,814

Total Income from transactions 33,938 38,354 159,166 169,036 148,847 151,485 15,323 17,023 231,147 140,040 32,471 41,575 620,892 557,513

Expenses from transactions

Employee expenses (8,608) (8,593) (17,966) (17,480) (8,069) (7,203) (5,476) (5,119) (28,041) (27,344) (10,111) (10,116) (78,271) (75,855)

Depreciation and amortisation (186) (192) (939) (956) (446) (453) (90) (95) (2,153) (1,217) (246) (249) (4,060) (3,162)

Interest expense (7) (6) (9) (8) (6) (5) (4) (4) (14) (10) (7) (6) (47) (40)

Grants and other transfers (7,312) (15,368) (89,522) (136,884) (126,525) (136,225) (5,816) (6,986) (79,153) (58,767) (1,951) (2,558) (310,279) (356,787)

Capital asset charge (159) (159) (3,363) (3,202) (1,705) (1,762) (81) (82) (3,961) (4,024) (222) (223) (9,491) (9,451)

Other operating expenses (15,263) (9,769) (24,953) (22,967) (14,541) (10,122) (4,913) (4,638) (124,098) (51,433) (20,172) (29,884) (203,940) (128,814)

Total expenses from transactions (31,535) (34,087) (136,752) (181,497) (151,292) (155,770) (16,380) (16,924) (237,420) (142,795) (32,709) (43,036) (606,088) (574,109)

Net result from transactions (net operating balance) 2,403 4,267 22,414 (12,461) (2,445) (4,285) (1,057) 99 (6,273) (2,755) (238) (1,461) 14,804 (16,596)

Other economic flows included in net result

Net gain/(loss) on non-financial assets 2 (19) (729) (100) (1) (49) - (10) (3,234) (7,040) 75 (13) (3,887) (7,230)

Net gain/(loss) on financial instruments 2 - 10 3 5 - (26) - 7 - 3 - - 3

Other gains/(losses) from other economic flows 7 (32) 35 (167) 17 (81) 3 (16) 22 (151) 9 (45) 93 (492)

Total other economic flows included in net result 11 (51) (684) (264) 21 (130) (23) (26) (3,205) (7,191) 87 (58) (3,794) (7,719)

Net result 2,414 4,216 21,730 (12,725) (2,424) (4,415) (1,080) 73 (9,478) (9,946) (151) (1,519) 11,010 (24,315)

Other economic flows – other comprehensive income

Items that will not be reclassified to net result

Changes in physical asset revaluation surplus - 420 - 2,188 - 1,066 - 216 - (5,288) - 589 - (809)

Total other economic flows – other comprehensive income - 420 - 2,188 - 1,066 - 216 - (5,288) - 589 - (809)

Comprehensive result 2,414 4,636 21,730 (10,537) (2,424) (3,349) (1,080) 289 (9,478) (15,234) (151) (930) 11,010 (25,124)



03 FINANCIAL REPORT

NOTE 2. DEPARTMENTAL (CONTROLLED) OUTPUTS (CONTINUED)

Schedule B – Controlled assets and liabilities as at 30 June 2013







DEPARTMENTAL TOTAL

2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Assets

Financial assets 9,844 9,592 69,669 47,381 24,160 21,280 5,475 6,541 78,481 63,499 15,226 13,419 202,855 161,712

Non-financial assets 5,621 5,624 29,287 32,449 19,390 18,861 2,886 2,887 547,216 452,827 7,884 7,887 612,284 520,535

Total Assets 15,465 15,216 98,956 79,830 43,550 40,141 8,361 9,428 625,697 516,326 23,110 21,306 815,139 682,247

Total Liabilities (2,934) (3,180) (18,547) (18,919) (13,748) (11,318) (289) (535) (44,919) (32,907) (4,312) (4,366) (84,749) (71,224)

Net Assets 12,531 12,036 80,409 60,911 29,802 28,823 8,072 8,893 580,778 483,419 18,798 16,940 730,390 611,023


NOTE 3. ADMINISTERED (NON-CONTROLLED) ITEMS

In addition to the specific Departmental operations which are included in the financial statements (comprehensive operating statement, balance sheet, statement of changes on equity and cash flow statement), the Department administers or manages other activities and resources on behalf of the State such as the sale of books from Victorian Bookshop. The transactions relating to these activities are reported as administered items (refer to Notes 1(D) and 1(F) in this note).







DEPARTMENTAL TOTAL

2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Administered income from transactions

Appropriations – payments made on behalf of the State

- - - - 59,000 57,350 - - - - - - 59,000 57,350

Sale of goods and services 7 44 1,054 1,079 2,104 5,908 2 (7) 16,014 (2) 3 - 19,184 7,022

Interest - - - - 16,837 16,318 - - - - - - 16,837 16,318

Commonwealth grants - - - - - - - - 1,078 3,259 - - 1,078 3,259

Total administered Income from transactions 7 44 1,054 1,079 77,941 79,576 2 (7) 17,092 3,257 3 - 96,099 83,949

Administered expenses from transactions

Payments into Consolidated Fund - - (5,347) (1,417) (7,692) (34,670) - - (30,215) (7,419) - - (43,254) (43,506)

Bad debts - - (66) (88) - - - - - - - - (66) (88)

Other operating expenses - - - - (18,391) (27,027) - - - - - - (18,391) (27,027)

Interest expense - - - - (40,609) (40,475) - - - - - - (40,609) (40,475)

Total administered expenses from transactions - - (5,413) (1,505) (66,692) (102,172) - - (30,215) (7,419) - - (102,320) (111,096)

Total administered net result from transactions (net operating balance)

7 44 (4,359) (426) 11,249 (22,596) 2 (7) (13,123) (4,162) 3 - (6,221) (27,147)

Administered other economic flows included in administered net result

Net gain/(loss) on non-financial assets - - - - - 23 - - 13,325 4,160 - - 13,325 4,183

Net gain/(loss) on financial instruments - - - 453 - - - - - - - - - 453

Total administered other economic flows - - - 453 - 23 - - 13,325 4,160 - - 13,325 4,636

Administered net result 7 44 (4,359) 27 11,249 (22,573) 2 (7) 202 (2) 3 - 7,104 (22,511)

Total administered comprehensive result 7 44 (4,359) 27 11,249 (22,573) 2 (7) 202 (2) 3 - 7,104 (22,511)



03 FINANCIAL

REPORT

Schedule B – Controlled assets and liabilities as at 30 June 2013







DEPARTMENTAL TOTAL

2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Assets

Financial assets 9,844 9,592 69,669 47,381 24,160 21,280 5,475 6,541 78,481 63,499 15,226 13,419 202,855 161,712

Non-financial assets 5,621 5,624 29,287 32,449 19,390 18,861 2,886 2,887 547,216 452,827 7,884 7,887 612,284 520,535

Total Assets 15,465 15,216 98,956 79,830 43,550 40,141 8,361 9,428 625,697 516,326 23,110 21,306 815,139 682,247

Total Liabilities (2,934) (3,180) (18,547) (18,919) (13,748) (11,318) (289) (535) (44,919) (32,907) (4,312) (4,366) (84,749) (71,224)

Net Assets 12,531 12,036 80,409 60,911 29,802 28,823 8,072 8,893 580,778 483,419 18,798 16,940 730,390 611,023








DEPARTMENTAL TOTAL

2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Administered income from transactions

Appropriations – payments made on behalf of the State

- - - - 59,000 57,350 - - - - - - 59,000 57,350

Sale of goods and services 7 44 1,054 1,079 2,104 5,908 2 (7) 16,014 (2) 3 - 19,184 7,022

Interest - - - - 16,837 16,318 - - - - - - 16,837 16,318

Commonwealth grants - - - - - - - - 1,078 3,259 - - 1,078 3,259

Total administered Income from transactions 7 44 1,054 1,079 77,941 79,576 2 (7) 17,092 3,257 3 - 96,099 83,949

Administered expenses from transactions

Payments into Consolidated Fund - - (5,347) (1,417) (7,692) (34,670) - - (30,215) (7,419) - - (43,254) (43,506)

Bad debts - - (66) (88) - - - - - - - - (66) (88)

Other operating expenses - - - - (18,391) (27,027) - - - - - - (18,391) (27,027)

Interest expense - - - - (40,609) (40,475) - - - - - - (40,609) (40,475)

Total administered expenses from transactions - - (5,413) (1,505) (66,692) (102,172) - - (30,215) (7,419) - - (102,320) (111,096)

Total administered net result from transactions (net operating balance)

7 44 (4,359) (426) 11,249 (22,596) 2 (7) (13,123) (4,162) 3 - (6,221) (27,147)

Administered other economic flows included in administered net result

Net gain/(loss) on non-financial assets - - - - - 23 - - 13,325 4,160 - - 13,325 4,183

Net gain/(loss) on financial instruments - - - 453 - - - - - - - - - 453

Total administered other economic flows - - - 453 - 23 - - 13,325 4,160 - - 13,325 4,636

Administered net result 7 44 (4,359) 27 11,249 (22,573) 2 (7) 202 (2) 3 - 7,104 (22,511)

Total administered comprehensive result 7 44 (4,359) 27 11,249 (22,573) 2 (7) 202 (2) 3 - 7,104 (22,511)



03 FINANCIAL REPORT







DEPARTMENTAL TOTAL

2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Administered financial assets

Receivables - - 3,083 5,778 5,212 4,859 - - - - - - 8,295 10,637

Loans - - 6,035 7,710 277,597 268,452 - - - - - - 283,632 276,162

Investments - - 210,654 201,037 888,977 921,442 - - - - - - 1,099,631 1,122,479

Trust funds (13) (19) (33) (50) (18) (29) (5) (7) (26) (41) (7) (9) (102) (154)

Total administered financial assets (13) (19) 219,739 214,475 1,171,768 1,194,724 (5) (7) (26) (41) (7) (9) 1,391,456 1,409,124

Administered non-financial assets

Total administered non-financial assets - - - - - - - - - - - - - -

Total administered assets (13) (19) 219,739 214,475 1,171,768 1,194,724 (5) (7) (26) (41) (7) (9) 1,391,456 1,409,124

Administered liabilities

Creditors and accruals - - - - (14,969) (14,940) - - - - - - (14,969) (14,940)

Unearned income - - - - (71,976) (74,070) - - - - - - (71,976) (74,070)

Interest bearing liabilities - - - - (461,103) (460,960) - - - - - - (461,103) (460,960)

Total administered liabilities - - - - (548,048) (549,970) - - - - - - (548,048) (549,970)

Total administered net assets (13) (19) 219,739 214,475 623,720 644,754 (5) (7) (26) (41) (7) (9) 843,408 859,154


NOTE 4. INCOME FROM TRANSACTIONS

2013 2012

$’000 $’000

(a) Interest

Interest from financial assets not at fair value through P/L:

– Interest on bank deposits 611 1,218

Total interest 611 1,218

(b) Grants

Grants from Commonwealth - 10,000

Grants from State Government 83,495 77,891

Total grants 83,495 87,891

(c) Other income

Trust income 4,856 2,333

Rental income 127 51

Land development (Kew Residential Services Redevelopment) 85,913 21,127

Miscellaneous income 7,758 9,303

Total other income 98,654 32,814

NOTE 3. ADMINISTERED (NON-CONTROLLED) ITEMS


03 FINANCIAL

REPORT







DEPARTMENTAL TOTAL

2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Administered financial assets

Receivables - - 3,083 5,778 5,212 4,859 - - - - - - 8,295 10,637

Loans - - 6,035 7,710 277,597 268,452 - - - - - - 283,632 276,162

Investments - - 210,654 201,037 888,977 921,442 - - - - - - 1,099,631 1,122,479

Trust funds (13) (19) (33) (50) (18) (29) (5) (7) (26) (41) (7) (9) (102) (154)

Total administered financial assets (13) (19) 219,739 214,475 1,171,768 1,194,724 (5) (7) (26) (41) (7) (9) 1,391,456 1,409,124

Administered non-financial assets

Total administered non-financial assets - - - - - - - - - - - - - -

Total administered assets (13) (19) 219,739 214,475 1,171,768 1,194,724 (5) (7) (26) (41) (7) (9) 1,391,456 1,409,124

Administered liabilities

Creditors and accruals - - - - (14,969) (14,940) - - - - - - (14,969) (14,940)

Unearned income - - - - (71,976) (74,070) - - - - - - (71,976) (74,070)

Interest bearing liabilities - - - - (461,103) (460,960) - - - - - - (461,103) (460,960)

Total administered liabilities - - - - (548,048) (549,970) - - - - - - (548,048) (549,970)

Total administered net assets (13) (19) 219,739 214,475 623,720 644,754 (5) (7) (26) (41) (7) (9) 843,408 859,154


NOTE 4. INCOME FROM TRANSACTIONS

2013 2012

$’000 $’000

(a) Interest

Interest from financial assets not at fair value through P/L:

– Interest on bank deposits 611 1,218

Total interest 611 1,218

(b) Grants

Grants from Commonwealth - 10,000

Grants from State Government 83,495 77,891

Total grants 83,495 87,891

(c) Other income

Trust income 4,856 2,333

Rental income 127 51

Land development (Kew Residential Services Redevelopment) 85,913 21,127

Miscellaneous income 7,758 9,303

Total other income 98,654 32,814


03 FINANCIAL REPORT

2013 2012

$’000 $’000

(a) Employee expenses

Salaries, wages, and long service leave (78,271) (75,855)

Total employee expenses (78,271) (75,855)

(b) Depreciation and amortisation

Depreciation of non-current assets (1,811) (833)

Amortisation of non-current physical and intangible assets (2,249) (2,329)

Total depreciation and amortisation (4,060) (3,162)

(c) Interest expense

Interest on finance leases (47) (40)

Total interest expense (47) (40)

(d) Grants and other transfers

Workforce Participation Programs (1,709) (3,847)

Science, Technology and Innovation Programs (64,329) (93,924)

Industry Programs (83,051) (67,708)

Tourism Victoria (49,107) (58,594)

Film Victoria (14,316) (17,365)

Trust Grants (733) (2,806)

Other Programs (13,200) (10,632)

Major Event Programs (75,834) (76,711)

Synchrotron (8,000) (25,200)

Total grants and other transfers (310,279) (356,787)

NOTE 5. EXPENSES FROM TRANSACTIONS


03 FINANCIAL

REPORT

2013 2012

$’000 $’000

(e) Other operating expenses

Supplies and services

Consultants and professional services (31,752) (44,052)

Contract and service payments (26,120) (18,020)

Accommodation expenses (3,785) (4,284)

Marketing and media expenses (9,893) (6,919)

Computer services and equipment (9,254) (10,241)

Travel and related expenses (3,880) (2,512)

Postage and communications (1,990) (1,797)

Stationery and office requisites (1,446) (1,405)

Educational expenses (1,663) (1,326)

Meeting expenses (3,275) (1,997)

Books and publications (815) (813)

Motor vehicle expenses (380) (368)

Audit costs (internal & external) (a) (712) (544)

Other expenses (497) (700)

Total supplies and services (95,462) (94,978)

Fair value of assets and services provided free of charge or for nominal consideration

(387) (19)

Total fair value of assets and services provided free of charge or for nominal consideration

(387) (19)

Operating lease rental expenses

– Minimum lease payments (10,788) (10,466)

Total operating lease rental expenses (10,788) (10,466)

Cost of goods sold/distributed (b) (97,303) (23,351)

Total other operating expenses (203,940) (128,814)

(a) See Note 32 for external auditor’s remuneration.

(b) Costs relate primarily to Kew Residential Services Redevelopment.


03 FINANCIAL REPORT

NOTE 6. OTHER ECONOMIC FLOWS INCLUDED IN NET RESULT

2013 2012

$’000 $’000

(a) Net gain/(loss) on non-financial assets

Net loss on disposal of property, plant and equipment (654) (256)

Disposal of intangible assets (i) (3,233) (1,248)

Write-down of inventory (ii) - (5,726)

Total net gain/(loss) on non-financial assets (3,887) (7,230)

(b) Net gain/(loss) on financial instruments

Impairment of

– Loans and receivables (iii) - 3

Total net gain/(loss) on financial instruments - 3

(c) Other gains/(losses) from other economic flows

Net gain/(loss) arising from revaluation of long service leave liability (iv) 93 (492)

Total other gains/(losses) from other economic flows 93 (492)

Notes:

(i) Parkville Gardens costs are expensed in line with the sale of properties.

(ii) Write-down of inventory to net realisable value.

(iii) Increase/(decrease) in provision for doubtful debts

(iv) Revaluation gain/(loss) due to changes in bond rates


03 FINANCIAL

REPORT

2013 2012

$’000 $’000

Current receivables

Contractual

Other receivables – Government (i) 8,945 1,794

Other receivables – Non-government 8,044 6,393

Provision for doubtful contractual receivables (i) (27) (27)

16,962 8,160

Statutory

Amounts owing from Victorian Government (ii) 89,756 82,812

GST input tax credit recoverable 5,242 6,245

94,998 89,057

Total current receivables 111,960 97,217

Non-current receivables

Contractual

Other receivables – Government (i) 293 1,574

293 1,574

Statutory

Amounts owing from Victorian Government (ii) 1,373 1,876

Total non-current receivables 1,666 3,450

Total Receivables 113,626 100,667

(i) The average credit period for the provision of goods and services is 30 days. The majority of receivables relate to non-trading activities and the credit terms will differ. No interest is charged on other receivables.

(ii) The amounts recognised from Victorian Government represent funding for all commitments incurred through the appropriations and are drawn from the Consolidated Fund as the commitments fall due.

NOTE 8. INVENTORIES

Notes 2013 2012

$’000 $’000

Current inventories

Work in progress:

– At net realisable value (i) 1(P) 23,646 34,760

Total Inventories 23,646 34,760

(i) Major Projects Victoria is responsible for managing the Kew Residential Services Redevelopment Project. The land for the project is held as inventory until it is sold.

NOTE 7. RECEIVABLES


03 FINANCIAL REPORT

NOTE 9. PROPERTY, PLANT AND EQUIPMENT

Classification by ‘Purpose Groups’ (i) – Carrying amounts

Public Safety and Environment Public Administration Total

2013 2012 2013 2012 2013 2012

$’000 $’000 $’000 $’000 $’000 $’000

Land

Crown land – fair value - - 93,887 93,887 93,887 93,887

- - 93,887 93,887 93,887 93,887

Buildings

Buildings at fair value - - 10,323 10,323 10,323 10,323

Less: Accumulated depreciation - - (279) - (279) -

- - 10,044 10,323 10,044 10,323

Building leasehold

Building leasehold – at fair value (ii) - - 6,094 6,094 6,094 6,094

Less: Accumulated amortisation - - (60) - (60) -

- - 6,034 6,094 6,034 6,094

Leasehold improvements – at fair value - - 26,530 26,328 26,530 26,328

Less: Accumulated amortisation - - (12,194) (10,418) (12,194) (10,418)

- - 14,336 15,910 14,336 15,910

Total land and buildings - - 124,301 126,214 124,301 126,214

Plant and equipment

Plant and equipment at fair value - - 2,529 2,547 2,529 2,547

Less: Accumulated depreciation - - (2,216) (2,032) (2,216) (2,032)

- - 313 515 313 515

Plant and equipment under finance lease – at fair value

- - 1,464 1,421 1,464 1,421

Less: Accumulated depreciation - - (487) (508) (487) (508)

- - 977 913 977 913

Total plant and equipment - - 1,290 1,428 1,290 1,428

Property, plant and equipment in the course of construction – at fair value

- - 335,397 228,880 335,397 228,880

- - 335,397 228,880 335,397 228,880

Total property, plant and equipment - - 460,988 356,522 460,988 356,522

Infrastructure

Infrastructure at fair value - - 66,305 66,305 66,305 66,305

Less: Accumulated depreciation - - (1,134) - (1,134) -

Total infrastructure - - 65,171 66,305 65,171 66,305

Net carrying amount of PPE - - 526,159 422,827 526,159 422,827

(i) Property, plant and equipment are classified primarily by the ‘purpose’ for which the assets are used, according to one of six ‘Purpose Groups’ based upon Government Purpose Classifications (GPC). All assets within a ‘Purpose Group’ are further sub-categorised according to the asset’s ‘nature’ (i.e. buildings, plant and equipment, etc), with each sub-category being classified as a separate class of asset for financial reporting purposes.

(ii) Building Leasehold is for a term of 150 years from the year 1990.


03 FINANCIAL

REPORT

Classification by ‘Public Safety and Environment’ Purpose Group – Movements in carrying amounts

Buildings Leasehold Improvements Plant and Equipment Total

2013 2012 2013 2012 2013 2012

$’000 $’000 $’000 $’000 $’000 $’000

Opening balance - 7 - - - 7

Disposals - (4) - - - (4)

Depreciation/amortisation expense

- (3) - - - (3)

Closing balance - - - - - -


03 FINANCIAL REPORT

NOTE 9. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)

Classification by ‘Public Administration’ Purpose Group – Movements in carrying amounts

Crown Land at Fair Value Buildings at fair value Leasehold Improvements Buildings Leasehold Plant and Equipment Infrastructure Leased Plant and Equipment In Course of Construction Total

2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Opening balance 93,887 107,018 10,323 4,223 15,910 17,379 6,094 4,080 515 583 66,305 30,034 913 943 228,880 115,267 422,827 279,527

Additions - - - - 485 1,121 - - 464 203 - - 677 636 116,859 146,183 118,485 148,143

Disposals - - - - (99) (532) - - - (20) - - (243) (311) - - (342) (863)

Transfers via contributed capital - - - - - - - - - - - - - - (9,616) - (9,616) -

Impairment of assets - - - - - - - - - - - - - - (725) - (725) -

Transfers to classified as held for sale - - - - - - - - - - - - (23) (12) - - (23) (12)

Net revaluation increments - 3,834 - 6,211 - - - 2,060 - - - 4,051 - - - - - 16,156

Net revaluation decrements - (16,965) - - - - - - - - - - - - - - - (16,965)

Depreciation/amortisation expense - - (278) (111) (1,960) (2,058) (61) (46) (279) (251) (1,134) (350) (348) (343) - - (4,060) (3,159)

Received/given free of charge - - - - - - - - (387) - - - - - - - (387) -

Transfers between classes - - - - - - - - - - - 32,570 - - - (32,570) - -

Closing balance 93,887 93,887 10,045 10,323 14,336 15,910 6,033 6,094 313 515 65,171 66,305 976 913 335,398 228,880 526,159 422,827

The following useful lives of assets are used in the calculation of depreciation and amortisation:

2013 2012

Years Years

Buildings 33 to 50 33 to 50


Infrastructure 90 90

Leasehold improvements 8 to 15 8 to 15

Plant and equipment 3 to 10 3 to 10

Leased plant and equipment 1 to 3 1 to 3

Intangible produced assets – software development 1 to 5 -

Aggregate depreciation and amortisation allocated, recognised as an expense during the year:

2013 2012

$’000 $’000

Buildings 279 111


Infrastructure 1,134 350

Leasehold improvements 1,960 2,061

Plant and equipment 279 251

Leased plant and equipment 348 343

Total 4,060 3,162


03 FINANCIAL

REPORT

Classification by ‘Public Administration’ Purpose Group – Movements in carrying amounts

Crown Land at Fair Value Buildings at fair value Leasehold Improvements Buildings Leasehold Plant and Equipment Infrastructure Leased Plant and Equipment In Course of Construction Total

2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Opening balance 93,887 107,018 10,323 4,223 15,910 17,379 6,094 4,080 515 583 66,305 30,034 913 943 228,880 115,267 422,827 279,527

Additions - - - - 485 1,121 - - 464 203 - - 677 636 116,859 146,183 118,485 148,143

Disposals - - - - (99) (532) - - - (20) - - (243) (311) - - (342) (863)

Transfers via contributed capital - - - - - - - - - - - - - - (9,616) - (9,616) -

Impairment of assets - - - - - - - - - - - - - - (725) - (725) -

Transfers to classified as held for sale - - - - - - - - - - - - (23) (12) - - (23) (12)

Net revaluation increments - 3,834 - 6,211 - - - 2,060 - - - 4,051 - - - - - 16,156

Net revaluation decrements - (16,965) - - - - - - - - - - - - - - - (16,965)

Depreciation/amortisation expense - - (278) (111) (1,960) (2,058) (61) (46) (279) (251) (1,134) (350) (348) (343) - - (4,060) (3,159)

Received/given free of charge - - - - - - - - (387) - - - - - - - (387) -

Transfers between classes - - - - - - - - - - - 32,570 - - - (32,570) - -

Closing balance 93,887 93,887 10,045 10,323 14,336 15,910 6,033 6,094 313 515 65,171 66,305 976 913 335,398 228,880 526,159 422,827

Restricted Assets

The Department holds $1.053 million of properties listed as heritage assets. These heritage assets cannot be modified nor disposed of without formal Ministerial approval.

Freehold Land

An independent valuation of the Department’s land and buildings was performed by the Valuer General Victoria to determine the fair value of the land and buildings. The valuation, which conforms to Australian Valuation Standards, was determined by reference to the amounts for which assets could be exchanged between knowledgeable willing parties in an arm’s length transaction. Fair value is determined by direct reference to recent market transactions on arm’s length terms for land and buildings of comparable size and location to the Department. The valuation was based on independent assessments. The effective date of the valuation was 30 June 2012 (refer Note 1(P)).


03 FINANCIAL REPORT

NOTE 10. NON-FINANCIAL PHYSICAL ASSETS CLASSIFIED AS HELD FOR SALE INCLUDING DISPOSAL GROUP AND DIRECTLY ASSOCIATED LIABILITIES

2013 2012

$’000 $’000

Non-financial physical assets including disposal group assets classified as held for sale

Current assets

Leased Plant and equipment held for sale (i) 23 12

Total non-financial physical assets and disposal group assets classified as held for sale 23 12

Liabilities directly associated with assets classified as held for sale including disposal groups

Current liabilities

Finance lease liabilities 23 12

Total liabilities directly associated with assets classified as held for sale including disposal groups 23 12

(i) The Department holds a leased motor vehicle which it intends to sell in the next 12 months.

NOTE 11. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

The Department has a joint venture interest with Monash University in the Australian Regenerative Medical Institute (ARMI). ARMI was established to construct and operate a facility which will promote Victoria as a global leader in regenerative medical research, foster and develop existing research collaboration on both domestic and overseas projects and provide a major site for both undergraduate and post graduate training programs.

2013 2012

$’000 $’000

Non-current investments in jointly controlled entities 35,000 35,000

35,000 35,000

Name of entity Principal Activity Ownership Interest % (i)

Jointly controlled entities 2013 2012

Australian Regenerative Medicine Institute (ARMI)

To construct and operate a regenerative medical research facility. 20 21

(i) The interest of the Department in the joint venture is 20% in accordance with the agreement. The fair value of the ownership interest held by the Department is equal to the value of cash invested in the Joint Venture which amounts to $35 million at 30 June 2013 ($35 million at 30 June 2012).


03 FINANCIAL

REPORT

Summarised financial information of jointly controlled entities

At balance date, the Department’s share of net assets and the net result after tax of its jointly controlled entities are as follows:

2013 2012

$’000 $’000

Current assets 306 294

Non-current assets 135,312 139,225

Total assets 135,618 139,519

Current liabilities

Non-current liabilities - -

Total liabilities - -

Net assets 135,618 139,519

Share of jointly controlled entity’s net assets 35,000 35,000

Share of jointly controlled entity’s result after tax - -

Dividends received from jointly controlled entity - -

Contingent liabilities and capital commitments

The Department’s share of the contingent liabilities, capital commitments and other expenditure commitments of its jointly controlled entities are disclosed in Notes 21 and 20 respectively.

NOTE 12. INTANGIBLE ASSETS

2013 2012

$’000 $’000

Gross carrying amount

Opening balance 26,920 27,763

Additions 2,802 405

Disposals or classified as held for sale (3,232) (1,248)

Closing balance 26,490 26,920

Significant intangible assets

The intangible assets relate to deferred expenditure of $24.947 million at 30 June 2013 (2012: $26.920 million) for the development of Parkville Gardens by Major Projects Victoria and work in progress for the internal software development Financial Systems Strategy project of $1.543 million at 30 June 2013 (2012: nil).

The value for the development of Parkville Gardens is progressively expensed in line with the sale of properties. Parkville Gardens Development was tested for impairment at 30 June 2013 (2012: nil) and no write-down was charged to the net result.

The internal software development Financial Systems Strategy project intangible asset will be amortised from 1 July 2013.


03 FINANCIAL REPORT

2013 2012

$’000 $’000

Current other assets

Prepayments 966 1,016

Total current other assets 966 1,016

NOTE 14. PAYABLES

2013 2012

$’000 $’000

Current payables

Contractual

Amounts payable to other government agencies (i) 5,932 5,483

Other payables (ii) 47,593 33,837

53,525 39,320

Statutory

Other payables 9,147 8,452

9,147 8,452

Total current payables 62,672 47,772

(i) Terms and conditions of amounts payable to other government agencies vary according to a particular agreement with that agency.

(ii) The average credit period is 30 days. No interest is charged on late payments.

(a) Maturity analysis of contractual payables Please refer to table 22.5 in Note 22 for the ageing analysis of contractual payables.

(b) Nature and extent of risk arising from contractual payables Please refer to Note 22 for the nature and extent of risks arising from contractual payables.

NOTE 15. BORROWINGS

2013 2012

$’000 $’000

Current borrowings

Finance lease liabilities (i) (Note 19) 469 589

Total current borrowings 469 589

Non-current borrowings

Finance lease liabilities (i) (Note 19) 515 362

Total non-current borrowings 515 362

Total borrowings 984 951

(i) Secured by the assets leased.

(a) Maturity analysis of interest borrowings Please refer to table 22.5 in Note 22 for the ageing analysis of borrowings.

(b) Nature and extent of risk arising from borrowings Please refer to table 22.6 in Note 22 for the nature and extent of risks arising from borrowings.

(c) Defaults and breaches During the current and prior year, there were no defaults and breaches of any of the loans.

NOTE 13. OTHER NON-FINANCIAL ASSETS


03 FINANCIAL

REPORT

2013 2012

$’000 $’000

Current provisions

Employee benefits (iii)

Unconditional and expected to be settled within 12 months (i) 7,190 6,833

Unconditional and expected to be settled after 12 months (ii) 9,479 10,103

Provisions related to employee benefit on-costs

Unconditional and expected to be settled within 12 months (i) 1,032 1,053

Unconditional and expected to be settled after 12 months (ii) 1,577 1,656

Total current provisions 19,278 19,645

Non-current provisions

Employee benefits (iii) 1,370 1,611

Provisions related to employee benefit on-costs 228 264

Provision for restoration of leased premises (iv) - 53

Total non-current provisions 1,598 1,928

Total provisions 20,876 21,573

Employee benefits and related on-costs

Current employee benefits

Annual leave entitlements 5,633 5,809

Unconditional long service leave entitlements 10,050 10,720

Other entitlements 986 407

Non-current employee benefits

Conditional long service leave entitlements 1,370 1,612

Total employee benefits 18,039 18,548

Current on-costs 2,609 2,709

Non-current on-costs 228 264

Total on-costs 2,837 2,973

Total employee benefits and related on-costs 20,876 21,521

(i) The amounts disclosed are nominal amounts.

(ii) The amounts disclosed are discounted to present value.

(iii) Provisions for employee benefits consist of amounts for annual leave and long service leave accrued by employees, not including on-costs.

(iv) The estimated future make good costs of various leased premises.

NOTE 16. PROVISIONS


03 FINANCIAL REPORT

NOTE 17. SUPERANNUATION

Employees of the Department are entitled to receive superannuation benefits and the Department contributes to both defined benefit and defined contribution plans. The defined benefit plan provides benefits based on years of service and final average salary.

The Department does not recognise any defined benefit liability in respect of the plan because the Department has no legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as they fall due. The Department of Treasury and Finance discloses the State’s defined benefit liabilities in its disclosure for administered items.

However, superannuation contributions paid or payable for the reporting period are included as part of the employee benefits in the comprehensive operating statement of the Department.

The name, details and amounts expensed in relation to the major employee superannuation funds and contributions made by the Department are as follows:

FundPaid contribution for the year

Contribution outstanding at year end

2013 2012 2013 2012

$’000 $’000 $’000 $’000

Defined benefit plans:

State Superannuation Fund – revised and new 1,112 1,319 - -

Defined contributions plans:

VicSuper 3,135 3,182 - -

Other 979 1,060 - -

Total 5,226 5,561 - -

(a) The bases for contributions are determined by the various schemes.

(b) The above amounts were measured as at 30 June of each year, or in the case of employer contributions they relate to the years ended 30 June.

NOTE 18. OTHER LIABILITIES

2013 2012

$’000 $’000

Current other liability

Unrecognised trust revenue – Australian Synchrotron Company Ltd (i) - 500

Other liabilities 194 416

194 916

Total other liabilities 194 916

(i) Trust revenue received for specific purposes is deferred and recognised progressively in the operating statement in the period in which conditions relating to the payment of the funds to third parties have been met.


03 FINANCIAL

REPORT

NOTE 19. LEASES

Finance leases

Leasing arrangements

Finance leases entered into by the Department relate to motor vehicles with lease terms between 1 and 3 years. The Department has options to purchase the vehicles at the conclusion of the lease agreements.

Finance lease liabilities

Minimum future lease payments

Present value of minimum future lease payments

2013 2012 2013 2012

$’000 $’000 $’000 $’000

Finance lease liabilities payable

Not longer than 1 year 516 628 469 589

Longer than 1 year but not longer than 5 years 547 382 515 362

Minimum future lease payments (i) 1,063 1,010 984 951

Less future finance charges (79) (59) –

Present value of minimum lease payments 984 951 984 951

Included in the financial statements as:

Current borrowings (Note 15) 469 589

Non-current borrowings (Note 15) 515 362

Total 984 951

(i) Minimum future lease payments includes the aggregate of all lease payments and any guaranteed residual.

Lessee – Operating leases


Operating leases mainly relate to accommodation with lease terms of between two and 15 years. All operating lease contracts contain market review clauses in the event that the Department exercises its option to renew. The Department does not have an option to purchase the leased asset at the expiry of the lease period.

2013 2012

$’000 $’000

Non-cancellable operating leases

Not longer than 1 year 11,026 10,934

Longer than 1 year but not longer than 5 years 41,597 41,291

Longer than 5 years 33,273 46,290

Total 85,896 98,515


03 FINANCIAL REPORT

NOTE 19. LEASES (CONTINUED)

Lessor – Operating leases


Major Projects Victoria leases out three restaurant premises. The lessees do not have an option to purchase at the end of the lease term.

2013 2012

$’000 $’000

Non-cancellable operating lease receivables

Not longer than 1 year 128 131

Longer than 1 year but not longer than 5 years 546 555

Longer than 5 years 764 953

Total 1,438 1,639

NOTE 20. COMMITMENTS FOR EXPENDITURE

The following commitments have not been recognised as liabilities in the financial statements.

Controlled commitments are payable as follows:

2013 2012

$’000 $’000

(a) Lease commitments

Finance lease liabilities and non-cancellable operating lease commitments are disclosed in Note 19 to the financial statements.

(b) Other expenditure commitments

Outsourcing commitments

Commitments under outsourcing contracts for information technology and internal audit services at the reporting date but not recognised as liabilities and payable are:

Not longer than 1 year 318 350

Longer than 1 year but not longer than 5 years 636 350

Total 954 700

2013 2012

$’000 $’000

Grant commitments

Commitments for the payment of grants under long-term contracts in existence at the reporting date but not recognised as liabilities and payable are:


Long than 1 year but not longer than 5 years 86,529 116,544

Longer than 5 years 1,832 2,433

177,895 198,109

Major Projects

Commitments for payments under contract in relation to projects in existence at the reporting date but not recognised as liabilities and payable are:


Longer than 1 year but not longer than 5 years 20,910 2,945

Total 214,064 169,187


03 FINANCIAL

REPORT

Melbourne Convention Centre Development Project (Administered)In May 2006, the State of Victoria entered into an agreement under its Partnerships Victoria policy for the development and maintenance of the Melbourne Convention Centre (MCC) facility by a private sector consortium (lessor).

The lessor was responsible for construction of the new facility which commenced in June 2006 and commercial acceptance was achieved on 31 March 2009. Upon its completion, the Department on behalf of the State was granted a 25 year finance lease by the lessor, and entered into an agreement under which the new facility will be operated by the Melbourne Convention and Exhibition Trust (MCET).

It is estimated as at 30 June 2013 that future lease payments relating to the new facility amount to $508.4 million (2012: $508.4 million) in net present value terms, or $1.114 million (2012: $1.154 million) in nominal dollars, to be paid to the lessor over a 25 year period which commenced 1 January 2009. At the same time, the Department on behalf of the State has entered into a loan agreement with MCET under which MCET undertakes to repay the State fifty per cent ($227.5 million) of the value of the asset ($455 million) over a 25 year period.

As part of the 25 year lease arrangement the lessor will provide services, maintenance and refurbishments in return for a fixed (inflation adjusted) quarterly service payment from the State. It is estimated that as at 30 June 2013, these future service payments amount to $219.0 million (2012: $219.3 million) in net present value terms, or $477.1 million (2012: $494.7 million) in nominal dollars, over the 25 year lease term.

Ownership of the MCC facility will transfer to the State at the end of the 25 year lease period at no cost.

Finance lease commitments outstanding in relation to the MCC development project for construction of the new facility are as follows:

Indexed nominal value Net present value (i)

2013 2012 2013 2012

$’000 $000 $’000 $000

Not longer than 1 year 41,245 40,211 39,275 38,290

Longer than 1 year but not longer than 5 years 175,880 171,463 137,893 134,437

Longer than 5 years 896,877 942,540 331,242 335,714

Total value of expected future commitments 1,114,002 1,154,214 508,410 508,441

(i) The net present value is calculated using a discount rate of 8.14% per annum and an inflation rate of 2.5% per annum.

Operating lease commitments outstanding in relation to the MCC development project for services, maintenance and refurbishments are as follows:

Indexed nominal value Net present value (i)

2013 2012 2013 2012

$’000 $000 $’000 $000

Not longer than 1 year 18,045 17,620 17,183 16,778

Longer than 1 year but not longer than 5 years 76,625 74,827 60,086 58,679

Longer than 5 years 382,441 402,284 141,759 143,867

Total value of expected future commitments 477,111 494,731 219,028 219,324

(i) The net present value is calculated using a discount rate of 8.14% per annum and an inflation rate of 2.5% per annum.


03 FINANCIAL REPORT

NOTE 21. CONTINGENT ASSETS AND CONTINGENT LIABILITIES

2013 2012

$’000 $’000

Contingent liabilities

Financial guarantee – letter of credit ICAAN, arrangement with Westpac 307 307

Total 307 307

Unquantifiable contingent assets and liabilities (controlled)Following the compulsory acquisition of land by Major Projects Victoria, the final amount of compensation payable to the land holder under the Land and Compensation Act 1986 is pending the outcome of court proceedings.

There are other litigation matters underway at balance date, details of which are not disclosed so as not to prejudice the cases.

Contingent liabilities are not secured over any of the assets of the Department.

NOTE 22. FINANCIAL INSTRUMENTS

(a) Financial risk management objectives and policiesThe Department’s activities expose it primarily to the financial risk of changes in interest rates. The Department does not enter into derivative financial instruments to manage its exposure to interest rate and foreign currency risk.

The Department does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

The Department’s principal financial instruments comprise:

> cash assets

> term deposits

> receivables (excluding statutory receivables)

> payables (excluding statutory payables)

> borrowings

> finance lease liabilities payable

Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement, and the basis on which income and expenses are recognised, with respect to each class of financial asset, financial liability and equity instrument above are disclosed in Note 1 to the financial statements.

The main purpose in holding financial instruments is to prudentially manage the Department’s financial risks in the Government policy parameters.

Investments in associates or joint ventures are disclosed separately in Note 11.

The Department uses different methods to measure and manage the different risks to which it is exposed.

The carrying amounts of the Department’s contractual financial assets and financial liabilities by category are disclosed in the following table.


03 FINANCIAL

REPORT

Table 22.1: Categorisation of financial instruments

Contractual Financial assets –

loans and receivables

Contractual Financial

liabilities at amortised

cost Total

2013 $’000 $’000 $’000

Contractual Financial assets

Cash and deposits 89,229 89,229

Receivables (i) 17,255 17,255

Total contractual financial assets 106,484 106,484

Contractual Financial liabilities

Payables (i)

– Supplies and services 53,525 53,525

Borrowings 984 984

Total contractual financial liabilities 54,509 54,509

2012

Contractual Financial assets

Cash and deposits 61,045 61,045

Receivables (i) 9,734 9,734

Total contractual financial assets 70,779 70,779

Contractual financial liabilities

Payables (i)

– Supplies and services 39,320 39,320

Borrowings 951 951

Total contractual financial liabilities 40,271 40,271

(i) Receivables and payables disclosed above exclude Statutory Receivables (i.e. GST recoverable) and Statutory Payables (i.e. Taxes payable).

Table 22.2: Net holding gain/(loss) on financial instruments by category

Net holding gains/ (loss)

Total interest income/

(expense) Total

2013 $’000 $’000 $’000

Contractual financial assets

Cash and deposits - 611 611

Total contractual financial assets - 611 611


Financial liabilities at amortised cost - (47) (47)

Total contractual financial liabilities - (47) (47)

2012


Cash and deposits - 1,218 1,218

Total contractual financial assets - 1,218 1,218


Financial liabilities at amortised cost - (40) (40)

Total contractual financial liabilities - (40) (40)


03 FINANCIAL REPORT

NOTE 22. FINANCIAL INSTRUMENTS (CONTINUED)

The net holding gains or losses disclosed above are determined as follows:

> For cash and cash equivalents, loans or receivables and available-for-sale financial assets, the net gain or loss is calculated by taking the movement in the fair value of the asset, the interest income, plus or minus foreign exchange gains or losses arising from revaluation of the financial assets, and minus any impairment recognised in the net result.

> For financial liabilities measured at amortised cost, the net gain or loss is calculated by taking the interest expense, plus or minus foreign exchange gains or losses arising from the revaluation of financial liabilities measured at amortised cost.

(b) Credit riskCredit risk arises from the contractual financial assets of the Department, which comprise cash and deposits, non-statutory receivables and available-for-sale contractual financial assets. The Department’s exposure to credit risk arises from the potential default of the counter party on their contractual obligations resulting in financial loss to the Department. Credit risk is measured at fair value and is monitored on a regular basis.

Credit risk associated with the Department’s financial assets is minimal because its main debtor is the Victorian Government. For debtors other than government, it is the Department’s policy to only deal with entities with high credit ratings of a minimum triple-B rating and to obtain sufficient collateral or credit enhancements where appropriate.

In addition, the Department does not engage in hedging for its financial assets and mainly holds financial assets that are on fixed interest except for cash assets which are mainly cash at bank. As with the policy for debtors, the Department’s policy is to only deal with domestic banks with high credit ratings.

Provision of impairment for contractual financial assets is recognised when there is objective evidence that the Department will not be able to collect a receivable. Objective evidence includes financial difficulties of the debtor, default payments, debts which are more than 60 days overdue, and changes in debtor credit ratings.

Except as otherwise detailed in the following table, the carrying amount of financial assets recorded in the financial statements, net of any allowances for losses, represents the Department’s maximum exposure to credit risk without taking account of the value of any collateral obtained.

Table 22.3: Credit quality of contractual financial assets that are neither past due nor impaired.

Government agencies

(AAA credit rating)

Other (minimum

BBB credit rating)

Internally rated bank

depositsNo default customers Total

2013 $’000 $’000 $’000 $’000 $’000

Cash and deposits 43,563 44,339 1,327 - 89,229

Receivables (i) 9,239 - - 8,016 17,255

Total contractual financial assets 52,802 44,339 1,327 8,016 106,484

2012

Cash and deposits 26,660 33,326 1,059 - 61,045

Receivables (i) 3,368 - - 6,366 9,734

Total contractual financial assets 30,028 33,326 1,059 6,366 70,779

(i) The carrying amounts disclosed here exclude statutory amounts (e.g. amounts owing from the Victorian Government and GST input tax credit recoverable)


03 FINANCIAL

REPORT

Contractual financial assets that are either past due or impaired

There are no material financial assets which are individually determined to be impaired. Currently the Department does not hold any collateral as security nor credit enhancements relating to any of its financial assets.

There are no financial assets that have had their terms renegotiated so as to prevent them from being past due or impaired, and they are stated at the carrying amounts as indicated. The ageing analysis Table 22.4 discloses the ageing only of contractual financial assets that are past due but not impaired.

Table 22.4 discloses the ageing only of financial assets that are past due but not impaired.

(c) Liquidity riskLiquidity risk is the risk that the Department would be unable to meet its financial obligations as and when they fall due. The Department operates under the Government fair payments policy of settling financial obligations within 30 days and, in the event of a dispute, making payments within 30 days from the date of resolution.

The Department’s maximum exposure to liquidity risk is the carrying amounts of financial liabilities as disclosed in the face of the balance sheet. The Department manages its liquidity risk by:

> maintaining an adequate level of uncommitted funds that can be drawn at short notice to meet its short term obligations

> holding investments and other contractual financial assets that are readily tradeable in the financial markets

> careful maturity planning of its financial obligations based on forecasts of future cash flows

> a high credit rating for the State of Victoria (Moody’s Investor Services & Standard & Poor’s triple-A), which assists in assessing debt market at a lower interest rate

The Department’s exposure to liquidity risk is deemed insignificant based on prior period’s data and current assessment of risk. Maximum exposure to liquidity risk is the carrying amounts of financial liabilities as disclosed in the face of the Balance Sheet.

Table 22.5 discloses the contractual maturity analysis for the Department’s contractual financial liabilities.

(d) Market riskThe Department’s exposures to market risk are primarily through interest rate risk with only insignificant exposure to foreign currency and other price risks. Objectives, policies and processes used to manage each of these risks are disclosed in the paragraphs below:

Foreign currency risk

The Department is exposed to insignificant foreign currency risk through its payables relating to purchases of supplies and consumables from overseas. This is because of a limited amount of purchases denominated in foreign currencies and a short time frame between commitment and settlement.

The Department manages its risk through continuous monitoring of movements in exchange rates and ensures availability of funds through rigorous cash flow planning and monitoring. Based on past and current assessment of economic outlook, it is deemed unnecessary for the Department to enter into any hedging arrangements to manage risk.

Interest rate risk

Exposure to interest rate risk is insignificant and might arise primarily through the Department’s interest-bearing liabilities and assets. The only interest-bearing liabilities and assets are the motor vehicle lease liabilities and term deposits. The Department’s interest bearing assets are managed by Treasury Corporation Victoria and any movement in interest rates are monitored on a daily basis.

The carrying amounts of financial assets and financial liabilities that are exposed to interest rates are set out in Table 22.6. In addition, the Department’s sensitivity to interest rate risk is set out in Table 22.7.


03 FINANCIAL REPORT


Sensitivity analysis disclosure

The Department’s sensitivity to market risk is determined based on the observed range of actual historical data for the preceding five year period, with all variables other than the primary risk variable held constant. The Department’s fund managers cannot be expected to predict movements in market rates and prices, sensitivity analyses are shown for illustrative purposes only. The following movements are ‘reasonably possible’ over the next 12 months:

A shift of +100 basis points (1%) and -100 basis points (1%) in market interest rates (AUD) from year-end rates.

Table 22.7 discloses the impact on the Department’s net result and equity for each category of financial instrument held by the Department at the end of the reporting period as presented to key management personnel, if the above movement were to occur.

Table 22.4: Ageing analysis of contractual financial assets

Not past due and not

impaired

Past due but not impaired

Carrying amount

Less than 1 month

1-3 months

3 -12 months 1-5 years

2013 $’000 $’000 $’000 $’000 $’000 $’000

Cash and deposits 89,229 89,229 - - - -

Receivables (i) 17,255 13,079 2,031 584 1,508 53

Total 106,484 102,308 2,031 584 1,508 53

2012

Cash and deposits 61,045 61,045 - - - -

Receivables (i) 9,734 9,332 313 12 - 77

Total 70,779 70,377 313 12 - 77

(i) The carrying amounts disclosed here exclude statutory amounts (e.g. amounts owing from Victorian Government and GST input tax credit recoverable).


03 FINANCIAL

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Table 22.5: Maturity analysis of contractual financial liabilities (ii)

Carrying amount

Maturity dates

Nominal amount

Less than 1 month

1 – 3 months

3 – 12 months

1 – 5 years

2013 $’000 $’000 $’000 $’000 $’000 $’000

Payables (i) 53,525 53,525 53,525 - - -

Finance lease liabilities 984 1,062 108 67 340 547

Total 54,509 54,587 53,633 67 340 547

2012

Payables (i) 39,320 39,320 39,320 - - -

Finance lease liabilities 951 1,009 154 58 415 382

Total 40,271 40,329 39,474 58 415 382

(i) The carrying amounts disclosed exclude statutory amounts (e.g. GST payables).

(ii) Maturity analysis is presented using the contractual and discounted cash flow.

Table 22.6: Interest rate exposure of financial instruments

Interest rate exposure

Weighted average effective interest

rateCarrying amount

Fixed interest rate

Variable interest rate

Non-interest bearing

2013 % $’000 $’000 $’000 $’000

Financial assests

Cash and deposits 2.34% 47,372 - 47,372 -

Cash and deposits 41,858 - - 41,858

Receivables (i) 17,255 - - 17,255

Total financial assets 106,485 - 47,372 59,113

Financial liabilities

Payables 53,525 - - 53,525

Financial lease liabilities 6.54% 984 984 - -

Total financial liabilities 54,509 984 - 53,525

2012

Financial assets

Cash and deposits 3.07% 36,579 78 36,501 -

Cash and deposits - 24,466 - - 24,466

Receivables (i) - 9,734 - - 9,734

Total financial assets 70,779 78 36,501 34,200

Financial liabilities

Payables (i) - 39,320 - - 39,320

Financial lease liabilities 6.50% 951 951 - -

Total financial liabilities 40,271 951 - 39,320

(i) The carrying amounts disclosed here exclude statutory amounts (e.g. amounts owing from Victorian Government, GST input tax credit recoverable, and GST payables).


03 FINANCIAL REPORT


Table 22.7: Interest rate risk sensitivity

INTEREST RATE RISK

-1% +1%

-100 basis points +100 basis points

Carrying amount Net Result

Available-for-sale

revaluation surplus Net Result

Available-for-sale

revaluation surplus

2013 $’000 $’000 $’000 $’000 $’000


Cash and deposits 89,229 474 - (474) -

Receivables 17,255 - - - -

Total impact 474 - (474) -


Payables 53,525 - - - -

Borrowings 984 - - - -

Total impact - - - -

2012


Cash and deposits 61,045 (366) - 366 -

Receivables 9,734 - - - -

Total impact (366) - 366 -


Payables 39,320 - - - -

Borrowings 951 - - - -

Total impact - - - -

(e) Fair valueThe fair values and net fair values of financial instrument assets and liabilities are determined as follows:

> Level 1 – the fair value of financial instrument with standard terms and conditions and traded in active liquid markets are determined with reference to quoted market prices;

> Level 2 – the fair value is determined using inputs other than quoted prices that are observable for the financial asset or liability, either directly or indirectly; and

> Level 3 – the fair value is determined in accordance with generally accepted pricing models based on discounted cash flow analysis using unobservable market inputs.

The Department considers that the carrying amount of financial instrument assets and liabilities recorded in the financial statements to be a fair approximation of their fair values, because of the short-term nature of the financial instruments and the expectation that they will be paid in full.


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(a) Reconciliation of cash and cash equivalentsFor the purpose of the cash flow statement, cash includes cash on hand and in bank (including funds held in trust), net of outstanding bank overdrafts. Cash at the end of the financial year as shown in the cash flow statement is reconciled to the related items in the balance sheet as follows:

2013 2012

$’000 $’000

Cash (i) 45,673 37,361

Funds held in trust (Note 29(b)) 43,556 23,684

Balance as per cash flow statement 89,229 61,045

(i) Due to the State of Victoria’s investment policy and Government funding arrangements, the Department does not hold a large cash reserve in it bank accounts. Cash received by the Department from the generation of income is generally paid into the State’s bank account, known as the Public Account. Similarly, any Departmental expenditure, including those in the form of cheques drawn by the Department for the payment of goods and services to its suppliers and creditors are made via the Public Account. The process is such that, the Public Account would remit to the Department the cash required for the amount drawn on the cheques. This remittance by the Public Account occurs upon the presentation of the cheques by the Department’s suppliers or creditors.

The above funding arrangements often result in Department having a notional shortfall in the cash at bank required for payment of unpresented cheques at the reporting period. At 30 June 2013, cash at bank includes the amount of a notional shortfall for the payment of unpresented cheques at the end of the reporting period.

At 30 June 2013, cash at bank included the amount of a notional shortfall for the payment of unpresented cheques of $106,085 (2012: $156,286).

(b) Non-cash financing and investing activities

2013 2012

$’000 $’000

Acquisition of plant and equipment by way of finance lease 677 636

Total 677 636

(c) Reconciliation of net result for the period

2013 2012

$’000 $’000

Net result for the period 11,010 (24,315)

Non-cash movements:

Loss on sale or disposal of non-current assets 3,162 253

Depreciation & amortisation of non-financial assets and intangible assets 4,060 4,410

Provision for doubtful debts - (3)

Impairment of non-current assets 725 -

Movements in assets and liabilities

Increase in current receivables (12,959) (3,248)

Decrease in other current assets 50 139

Increase in current payables 25,289 8,264

(Decrease)/increase in current provisions (368) 213

(Decrease) / increase in non-current provisions (277) 121

Net cash flows from/(used) in operating activities 30,692 (14,166)

NOTE 23. CASH FLOW INFORMATION


03 FINANCIAL REPORT

NOTE 24. INVESTMENTS

Term deposits:

The Department had no investments with maturity > 3 months.

NOTE 25. RESERVES

2013 2012

$’000 $’000

Physical asset revaluation surplus (i)

Balance at beginning of financial year 30,970 31,779

Revaluation increment/(decrements) - (809)

Balance at end of financial year 30,970 30,970

Net change in reserves - (809)

(i) The physical asset revaluation surplus arises on the revaluation of land and buildings.

NOTE 26. SUMMARY OF COMPLIANCE WITH ANNUAL PARLIAMENTARY AND SPECIAL APPROPRIATIONS

The following table discloses the details of the various Parliamentary appropriations received by the Department for the year. In accordance with accrual output-based management procedures ‘provision of outputs’ and ‘additions to net assets’ are disclosed as ‘controlled’ activities of the Department. Administered transactions are those that are undertaken on behalf of the State over which the Department has no control or discretion.

APPROPRIATION ACT FINANCIAL MANAGEMENT ACT 1994

Annual Appropriation Advance from Treasurer Section 3(2) Section 29 Section 30 Section 32Section 35 Advances

Total Parliamentary Authority Appropriations Applied Variance

2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012

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

Controlled

Provision of outputs 477,893 496,482 9,250 1,675 - - 1,078 - 4,070 1,580 42,126 43,038 - - 534,417 542,775 438,132 435,590 96,285 107,185 (i)

Additions to net assets 194,043 31,088 - - - - - 3,259 (9,070) (1,580) 6,961 83,734 - 131,000 191,934 247,501 120,511 146,596 71,423 100,905 (ii)

Administered

Payments made on behalf of the State

54,000 54,000 - 3,500 - - - - 5,000 - - - - - 59,000 57,500 59,000 57,500 - -

Total 725,936 581,570 9,250 5,175 - - 1,078 3,259 - - 49,087 126,772 - 131,000 785,351 847,776 617,643 639,686 167,708 208,090

(i) The Department received approval during 2012-13 to rephase a component of this unspent funding into future years. The Department has also included an estimate of the output carryover into the next financial year.

(ii) The Department received approval during 2012-13 to rephase a component of this unspent funding into future years. The Department has also included an estimate of the asset carryover into the next financial year.


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Term deposits:

The Department had no investments with maturity > 3 months.

NOTE 25. RESERVES

2013 2012

$’000 $’000

Physical asset revaluation surplus (i)

Balance at beginning of financial year 30,970 31,779

Revaluation increment/(decrements) - (809)

Balance at end of financial year 30,970 30,970

Net change in reserves - (809)

(i) The physical asset revaluation surplus arises on the revaluation of land and buildings.

NOTE 26. SUMMARY OF COMPLIANCE WITH ANNUAL PARLIAMENTARY AND SPECIAL APPROPRIATIONS

The following table discloses the details of the various Parliamentary appropriations received by the Department for the year. In accordance with accrual output-based management procedures ‘provision of outputs’ and ‘additions to net assets’ are disclosed as ‘controlled’ activities of the Department. Administered transactions are those that are undertaken on behalf of the State over which the Department has no control or discretion.

APPROPRIATION ACT FINANCIAL MANAGEMENT ACT 1994

Annual Appropriation Advance from Treasurer Section 3(2) Section 29 Section 30 Section 32Section 35 Advances

Total Parliamentary Authority Appropriations Applied Variance

2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012

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

Controlled

Provision of outputs 477,893 496,482 9,250 1,675 - - 1,078 - 4,070 1,580 42,126 43,038 - - 534,417 542,775 438,132 435,590 96,285 107,185 (i)

Additions to net assets 194,043 31,088 - - - - - 3,259 (9,070) (1,580) 6,961 83,734 - 131,000 191,934 247,501 120,511 146,596 71,423 100,905 (ii)

Administered

Payments made on behalf of the State

54,000 54,000 - 3,500 - - - - 5,000 - - - - - 59,000 57,500 59,000 57,500 - -

Total 725,936 581,570 9,250 5,175 - - 1,078 3,259 - - 49,087 126,772 - 131,000 785,351 847,776 617,643 639,686 167,708 208,090

(i) The Department received approval during 2012-13 to rephase a component of this unspent funding into future years. The Department has also included an estimate of the output carryover into the next financial year.

(ii) The Department received approval during 2012-13 to rephase a component of this unspent funding into future years. The Department has also included an estimate of the asset carryover into the next financial year.

NOTE 27. EX-GRATIA PAYMENTS

The Department has not made ex-gratia payments (2012: nil).

NOTE 28. ANNOTATED INCOME AGREEMENTS

The following is a listing of the Financial Management Act 1994 Section 29 annotated income agreements approved by the Treasurer:

2013 2012

$’000 $’000

Commonwealth Specific Purpose Payments

National Urban Water and Desalination Plan: New Melbourne Wholesale Market Stormwater Harvesting and Reuse Project

1,078 3,259

Total annotated income agreements 1,078 3,259


03 FINANCIAL REPORT

NOTE 29. TRUST ACCOUNT BALANCES

(a) Trust account balances relating to trust accounts controlled by the Department:

For the period 2012-13Opening Balance Revenue Expense

Closing Balance

$’000 $’000 $’000 $’000

Department Working Trust Account

State Development Special Projects Trust (i)

Community Regional Industry Skills Program (CRISP) 2,013 - (205) 1,808

Science and Technology Research and Development Fund 1,633 - (28) 1,605

Victorian Greenhouse Strategy Funds 138 - (35) 103

Victorian Government Business Office 421 - (68) 353

Youth Employment Scheme 394 - (49) 345

Infrastructure Precincts 9 - - 9

Recoup trusts 100 - (100) -

Melbourne Major Events 1,216 74,755 (74,398) 1,573

Real Estate Agents Guarantee Fund 155 - - 155

STI Awareness 45 60 (78) 27

ICT Skills 27 - (27) -

Project Funds 5,773 20,432 (1,102) 25,103

Ezybiz 2,658 551 (579) 2,630

Greening Our Automotive Industry 10 - (8) 2

Workforce Participation Trust 3,032 690 (2,316) 1,406

CAT General Purpose Trust 992 189 (30) 1,151

International Education Trust 2,133 - (78) 2,055

Small Business Services Policy 353 - (240) 113

RDV Projects 995 - (60) 935

e-GIF Program - 2,000 - 2,000

Geelong Advancement Fund - 2,000 - 2,000

Commonwealth Trust Accounts (ii)

Australian Synchrotron Contributions Fund 2,613 591 (500) 2,704

Broadband Broker Program 347 38 (115) 270

Regional Development Australia 762 1,519 (1,725) 556

Revenue Clearing Account 423 5 - 428

Vicfleet Finance Lease Sales (28) 120 - 92

Treasury Trust 42 - - 42

Total 26,256 102,950 (81,741) 47,465


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For the period 2011-12Opening Balance Revenue Expense

Closing Balance

$’000 $’000 $’000 $’000

Department Working Trust Account

State Development Special Projects Trust (i)

Community Regional Industry Skills Program (CRISP) 2,252 - (239) 2,013

Science and Technology Research and Development Fund 1,753 - (120) 1,633

Victorian Greenhouse Strategy Funds 250 - (112) 138

Victorian Government Business Office 460 - (39) 421

Youth Employment Scheme 373 90 (69) 394

Infrastructure Precincts 9 - - 9

Recoup Trusts 101 - (1) 100

Melbourne Major Events 601 73,901 (73,286) 1,216

Real Estate Agents Guarantee Fund 160 - (5) 155

STI Awareness 25 60 (40) 45

ICT Skills 27 - - 27

Project Funds 5,094 679 - 5,773

Reducing the Regulatory Burden 958 1,452 (2,410) -

Melbourne 50 Years On 14 - (14) -

Ezybiz 3,620 2,332 (3,294) 2,658

Greening Our Automotive Industry 28 - (18) 10

Workforce Participation Trust 4,438 531 (1,937) 3,032

CAT General Purpose Trust 1,193 184 (385) 992

International Education Trust 2,704 - (571) 2,133

Small Business Services Policy 419 1 (67) 353

RDV Projects 1,349 - (354) 995

Commonwealth Trust Accounts (ii)

Australian Synchrotron Contributions Fund 17,257 10,557 (25,201) 2,613

Broadband Broker Program 100 247 - 347

Natural Disasters Relief (5) 5 - -

Regional Development Australia 512 1,496 (1,246) 762

Regional Infrastructure Development Fund (iii) 53 - (53) -

Revenue Clearing Account 467 - (44) 423

Vicfleet Finance Lease Sales (23) - (5) (28)

Treasury Trust 169 1,690 (1,817) 42

Total 44,358 93,225 (111,327) 26,256

(i) For the purpose to assist in facilitating, encouraging, promoting and carrying out activities leading to a balanced economic development of the State. The governing legislation is Sector 19 of the Financial Management Act 1994.

(ii) For the purpose of holding funds from the Commonwealth Government. The governing legislation is Sector 19 of the Financial Management Act 1994.

(iii) Provide financial assistance for or with respect to capital works in relation to transport, regional industry, tourism, education, IT development and support. The governing legislation is the Regional Development Infrastructure Fund Act No. 64 1999.


03 FINANCIAL REPORT

NOTE 29. TRUST ACCOUNT BALANCES (CONTINUED)

(b ) Trust Account cash balances The following is a list of cash held in trust account balances relating to trusts controlled and administered by the Department.

2013 2012

$’000 $’000

(i) Controlled trusts

Department Working Trust Account 40,048 21,800

Commonwealth Trust Account 2,981 1,449

Treasury Trust Account 41 11

Vic Fleet Lease Sales 57 -

Revenue Clearing Account 429 424

Total controlled trusts 43,556 23,684

(ii) Administered trusts

Public Service Commuters Club Trust (101) (154)

Total administered trusts (Note 3) (101) (154)

The Department’s portion of the Public Service Commuter Club Trust is temporarily in deficit due to the timing difference between the purchase of travel tickets and reimbursement from employees. The Trust’s working capital is funded by the Department of Treasury and Finance, and the overall trust balance is in surplus.

(c) Trust accounts opened and closed by the Department:

During the 2013 financial year, the following Trust Accounts were opened: e-Government Innovation Fund (e-GIF) and Greater Geelong Industry Fund.

During the 2013 financial year, the following Trust Accounts were closed: nil.


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NOTE 30. RESPONSIBLE PERSONS

In accordance with the Ministerial Directions issued by the Minister for Finance under the Financial Management Act 1994, the following disclosures are made regarding responsible persons for the reporting period.

Names

The persons who held the positions of Ministers and Accountable Officer in the Department are as follows:

Minister for Innovation, Services and Small Business The Hon Louise Asher MLA 2 December 2010 to 30 June 2013

Minister for Tourism and Major Events The Hon Louise Asher MLA 2 December 2010 to 30 June 2013

Minister for Employment and Trade The Hon Louise Asher MLA 13 March 2013 to 30 June 2013

Minister for Employment and Industrial Relations The Hon Richard Dalla-Riva MLC 2 December 2010 to 13 March 2013

Minister for Major Projects The Hon David Hodgett MLA 13 March 2013 to 30 June 2013

Minister for Major Projects The Hon Dr Denis Napthine MLA 2 December 2010 to 13 March 2013

Minister for Regional Cities The Hon Dr Denis Napthine MLA 2 December 2010 to 30 June 2013

Minister for Manufacturing The Hon David Hodgett MLA 13 March 2013 to 30 June 2013

Minister for Manufacturing, Exports and Trade The Hon Richard Dalla-Riva MLC 2 December 2010 to 13 March 2013

Minister for State Development The Hon Minister Peter Ryan MLA 13 March 2013 to 30 June 2013

Minister for Regional and Rural Development The Hon Minister Peter Ryan MLA 2 December 2010 to 30 June 2013

Minister for Technology The Hon Gordon Rich-Phillips MLC 2 December 2010 to 30 June 2013

Minister responsible for the Aviation Industry The Hon Gordon Rich-Phillips MLC 2 December 2010 to 30 June 2013

Minister for Energy and Resources The Hon Nicholas Kotsiras MP 13 March 2013 to 30 June 2013

Secretary Mr Howard Ronaldson 14 May 2008 to 30 June 2013

Remuneration

Total remuneration received or receivable by the accountable officer in connection with the management of the Department during the reporting period was in the range $430,000 to $439,999 (2012: $410,000 – $419,000).

Other related transactions and loans requiring disclosure under the Directions of the Minister for Finance have been considered and there are no matters to report.

Amounts relating to Ministers are reported in the financial statements of the Department of Premier and Cabinet.


03 FINANCIAL REPORT

NOTE 31. REMUNERATION OF EXECUTIVES AND PAYMENTS TO OTHER PERSONNEL

(a) Remuneration of executives The number of executive officers, other than ministers and accountable officers, and their total remuneration during the reporting period are shown in the first two columns in the table below in their relevant income bands. The base remuneration of executive officers is shown in the third and fourth columns. Base remuneration is exclusive of bonus payments, long service leave payments, redundancy payments and retirement benefits. The total annualised employee equivalent provides a measure of full-time equivalent executive officers over the reporting period.

Several factors have affected total remuneration payable to executives over the year. A number of employment contracts were completed during the year and renegotiated and a number of executives received bonus payments during the year. These bonus payments depend on the terms of individual employment contracts. Some contracts provide for an annual bonus payment whereas other contracts only include the payment of bonuses on the successful completion of the full term of the contract. A number of these contract completion bonuses became payable during the year.

INCOME BAND TOTAL REMUNERATION BASE REMUNERATION

2013 2012 2013 2012

No. No. No. No.

$0 – $99,999 8 8 10 12

$100,000 – 109,999 - - 1 -

$110,000 – 119,999 2 1 2 -

$120,000 – 129,999 - - - 1

$130,000 – 139,999 1 1 - 1

$140,000 – 149,999 - 3 1 2

$150,000 – 159,999 3 2 3 3

$160,000 – 169,999 3 3 1 4

$170,000 – 179,999 3 2 5 4

$180,000 – 189,999 1 4 - 3

$190,000 – 199,999 1 5 5 5

$200,000 – 209,999 5 3 1 -

$210,000 – 219,999 1 3 - -

$220,000 – 229,999 - - - 1

$230,000 – 239,999 3 - 4 2

$240,000 – 249,999 1 2 1 1

$250,000 – 259,999 1 2 - 1

$260,000 – 269,999 - - - 1

$270,000 – 279,999 - - 1 2

$280,000 – 289,999 - 1 1 -

$290,000 – 299,999 - 2 - -

$300,000 – 309,999 2 - - -

$320,000 – 329,999 - - 1 -

$340,000 – 349,999 1 - - -

$350,000 – 359,999 1 1 1 -

$400,000 – 409,999 1 - - -

Total numbers 38 43 38 43

Total annualised employee equivalent (AEE) (a) 28.3 32.9 28.3 32.9

Total amount ($’000) 6,844 7,473 5,930 6,557

(a) Annualised employee equivalent is based on working 38 ordinary hours per week over the reporting period.

A number of executive officers retired or resigned in the past year. This has had a significant impact on total remuneration figures due to the inclusion of annual leave, and long service leave payments.


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(b) Payments to other personnel (i.e. contractors with significant management responsibilities)

The following disclosures are made in relation to other personnel of the Department, i.e. contractors charged with significant management responsibilities.

Payments have been made to a number of contractors with significant management responsibilities, which are disclosed in the $10,000 expense band. These contractors are responsible for planning, directing or controlling, directly or indirectly, the Department’s activities.

The change in the total expenses from 2012 to 2013 was mainly driven by new functions being undertaken by the Department in the 2013 reporting period.

EXPENSE BAND TOTAL OTHER PERSONNEL

2013 2012

No. No.

$0 – $99,999 1 1

$160,000 – 169,999 1 -

$180,000 – 189,999 1 1

$190,000 – 199,999 1 -

$230,000 – 239,999 1 -

$250,000 – 259,999 - 1

$270,000 – 279,999 - 1

$280,000 – 289,999 1 1

$310,000 – 319,999 1 -

$350,000 – 359,999 - 1

Total numbers 7 6

Total amount (exclusive of GST) ($’000) 1,446 1,419


03 FINANCIAL REPORT

NOTE 32. REMUNERATION OF AUDITORS

2013 2012

$’000 $’000

Victorian Auditor General’s Office

Audit of the financial statements 274 269

274 269

NOTE 33. RESTRUCTURE OF ADMINISTRATIVE ARRANGEMENTS

On 9 April 2013, the Government announced a restructure of its activities and on 25 June 2013 issued Administrative Order No. 217 under the Administrative Arrangements Act 1983. The restructure resulted in a number of changes to the Department’s functions and outputs. A new Office of State Development was created to drive growth and investment from both within Australia and internationally. In addition, the following changes effective from 1 July 2013, are summarised below:

Outputs transferred in:

2012-13 Outputs Transferor Department

Regional Development and Regional Cities Department of Planning and Community Development

Community Development Department of Planning and Community Development

Primary Industries Policy Department of Primary Industries

Regulation and Compliance Department of Primary Industries

Strategic and Applied Scientific Research Department of Primary Industries

Practice Change Department of Primary Industries

Expenses relating to transferred staff and other directly associated business expenses incurred between 3 June to 30 June 2013 which amount to $3,367,517, are reflected in the transferor Departments’ financial statements as the transferred staff continued to contribute to the delivery of the transferor Departments’ outputs during 2012-13.

Specific details of transferred staff are:

> Department of Planning and Community Development transferred 224 FTE staff with total resources received free of charge being $1,838,980

> Department of Primary Industries transferred staff 184 FTE staff with total resources received free of charge being $1,528,537

As part of the restructure, the Premier made two declarations under section 30 of the Public Administration Act 2004. The declarations transferred staff between the affected departments on 3 June 2013 and 1 July 2013 respectively.

As responsibility for the delivery of the 2012-13 outputs specified in the 2012-13 Budget remained with the transferor Department until 1 July 2013, all associated income, expenses, assets and liabilities are reported in the financial statements of the transferor Department in 2012-13. Assets and liabilities associated with outputs transferred to, or received from, another Department on 1 July 2013 will be reflected in the financial statements for 2013-14.


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NOTE 34. GLOSSARY OF TERMS

AmortisationAmortisation is the expense which results from the consumption, extraction or use over time of a non-produced physical or intangible asset. This expense is classified as an other economic flow.

AssociatesAssociates are all entities over which an entity has significant influence but not control, generally accompanying a shareholding and voting rights of between 20% and 50%.

BorrowingsBorrowings refers to interest-bearing liabilities mainly raised from public borrowings raised through the Treasury Corporation of Victoria, finance leases and other interest-bearing arrangements.

Comprehensive resultThe net result of all items of income and expense recognised for the period. It is the aggregate of operating result and other non-owner movements in equity.

Capital asset chargeThe capital asset charge represents the opportunity cost of capital invested in the non-financial physical assets used in the provision of outputs.

CommitmentsCommitments include those operating, capital and other outsourcing commitments arising from non-cancellable contractual or statutory sources.

Current grantsAmounts payable or receivable for current purposes for which no economic benefits of equal value are receivable or payable in return.

DepreciationDepreciation is an expense that arises from the consumption through wear or time of a produced physical or intangible asset. This expense is classified as a ‘transaction’ and so reduces the ‘net result from transaction’.

Effective interest methodThe effective interest method is used to calculate the amortised cost of a financial asset or liability and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument, or, where appropriate, a shorter period.

Employee benefits expensesEmployee benefits expenses include all costs related to employment including wages and salaries, fringe benefits tax, leave entitlements, redundancy payments, defined benefits superannuation plans and defined contribution superannuation plans.

Ex-gratia paymentsEx-gratia payment is the gratuitous payment of money where no legal obligation exists.

Financial assetA financial asset is any asset that is:

(a) cash

(b) an equity instrument of another entity

(c) a contractual or statutory right:

> to receive cash or another financial asset from another entity; or

> to exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the entity; or

(d) a contract that will or may be settled in the entity’s own equity instruments and is:

> a non-derivative for which the entity is or may be obliged to receive a variable number of the entity’s own equity instruments; or

> a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity’s own equity instruments.


03 FINANCIAL REPORT

Financial instrumentA financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets or liabilities that are not contractual (such as statutory receivables or payables that arise as a result of statutory requirements imposed by governments) are not financial instruments.

Financial liabilityA financial liability is any liability that is:

(a) A contractual or statutory obligation:

(i) To deliver cash or another financial asset to another entity; or

(ii) To exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the entity; or

(b) a contract that will or may be settled in the entity’s own equity instruments and is:

> a non-derivative for which the entity is or may be obliged to receive a variable number of the entity’s own equity instruments; or

> a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity’s own equity instruments. For this purpose the entity’s own equity instruments do not include instruments that are themselves contracts for the future receipt or delivery of the entity’s own equity instruments.

Financial statementsDepending on the context of the sentence where the term ‘financial statements’ is used, it may include only the main financial statements (i.e. comprehensive operating statement, balance sheet, cash flow statements, and statement of changes in equity); or it may also be used to replace the old term ‘financial report’ under the revised AASB 101 (Sept 2007), which means it may include the main financial statements and the notes.

NOTE 34. GLOSSARY OF TERMS (CONTINUED)

Grants and other transfersTransactions in which one party provides goods, services, assets (or extinguishes a liability) or labour to another party without receiving approximately equal value in return. Grants can either be operating or capital in nature. While grants to governments may result in the provision of some goods or services to the transferor, they do not give the transferor a claim to receive directly benefits of approximately equal value. Receipt and sacrifice of approximately equal value may occur, but only by coincidence. For example, governments are not obliged to provide commensurate benefits, in the form of goods or services to particular taxpayers in return for their taxes. For this reason, grants are referred to by the AASB as involuntary transfers and are termed non reciprocal transfers.

Grants can be paid as general purpose grants which refer to grants that are not subject to conditions regarding their use. Alternatively, they may be paid as specific purpose grants which are paid for a particular purpose and/or have conditions attached regarding their use.

General government sectorThe general government sector comprises all government departments, offices and other bodies engaged in providing services free of charge or at prices significantly below their cost of production. General government services include those which are mainly non-market in nature, those which are largely for collective consumption by the community and those which involve the transfer or redistribution of income. These services are financed mainly through taxes, or other compulsory levies and user charges.

Grants for on passingAll grants paid to one institutional sector (e.g. a state general government) to be passed on to another institutional sector (e.g. local government or a private non-profit institution).

Intangible produced assetsRefer to produced assets in this glossary.

Intangible non-produced assetsRefer to non-produced assets in this glossary.


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Interest expenseCosts incurred in connection with the borrowing of funds. Interest expenses include interest on bank overdrafts and short- and long-term borrowings, amortisation of discounts or premiums relating to borrowings, interest component of finance leases repayments, and the increase in financial liabilities and non-employee provisions due to the unwinding of discounts to reflect the passage of time.

Interest incomeInterest income includes unwinding over time of discounts on financial assets and interest received on bank term deposits and other investments.

Investment propertiesInvestment properties represent properties held to earn rentals or for capital appreciation or both. Investment properties exclude properties held to meet service delivery objectives of the State of Victoria.

Joint venturesJoint ventures are contractual arrangements between the Department and one or more other parties to undertake an economic activity that is subject to joint control. Joint control only exists when the strategic financial and operating decisions relating to the activity require the unanimous consent of the parties sharing control (the venturers).

Net acquisition of non-financial assets (from transactions)Purchases (and other acquisitions) of non-financial assets less sales (or disposals) of non-financial assets less depreciation plus changes in inventories and other movements in non-financial assets. Includes only those increases or decreases in non-financial assets resulting from transactions and therefore excludes write offs, impairment write downs and revaluations.

Net resultNet result is a measure of financial performance of the operations for the period. It is the net result of items of income, gains and expenses (including losses) recognised for the period, excluding those that are classified as ‘other non-owner changes in equity’.

Net result from transactions/net operating balanceNet result from transactions or net operating balance is a key fiscal aggregate and is income from transactions minus expenses from transactions. It is a summary measure of the ongoing sustainability of operations. It excludes gains and losses resulting from changes in price levels and other changes in the volume of assets. It is the component of the change in net worth that is due to transactions and can be attributed directly to government policies.

Net worthAssets less liabilities, which is an economic measure of wealth.

Non-financial assetsNon-financial assets are all assets that are not ‘financial assets’. It includes inventories, land, buildings, infrastructure, road networks, land under roads, plant and equipment, investment properties, cultural and heritage assets, and intangible assets.

Non-produced assetsNon-produced assets are assets needed for production that have not themselves been produced. They include land, subsoil assets, and certain intangible assets. Non-produced intangibles are intangible assets needed for production that have not themselves been produced. They include constructs of society such as patents.

Other economic flowsOther economic flows are changes in the volume or value of an asset or liability that do not result from transactions. It includes:

> gains and losses from disposals, revaluations and impairments of non-financial physical and intangible assets

> actuarial gains and losses arising from defined benefit superannuation plans

> fair value changes of financial instruments and agricultural assets

> depletion of natural assets (non-produced) from their use or removal

In simple terms, other economic flows are changes arising from market re-measurements.


03 FINANCIAL REPORT

PayablesIncludes short- and long-term trade debt and accounts payable, grants and interest payable.

Produced assetsProduced assets include buildings, plant and equipment, inventories, cultivated assets and certain intangible assets. Intangible produced assets may include computer software, motion picture films, and research and development costs (which do not include the start-up costs associated with capital projects).

Public financial corporation sectorPublic financial corporations (PFCs) are bodies primarily engaged in the provision of financial intermediation services or auxiliary financial services. They are able to incur financial liabilities on their own account (e.g. taking deposits, issuing securities or providing insurance services). Estimates are not published for the public financial corporation sector.

Public non-financial corporation sectorThe public non-financial corporation (PNFC) sector comprises bodies mainly engaged in the production of goods and services (of a non-financial nature) for sale in the market place at prices that aim to recover most of the costs involved (e.g. water and port authorities). In general, PNFC’s are legally distinguishable from governments which own them.

Quasi corporationAn unincorporated enterprise that functions as if it were a corporation, has the same relationship with its owner as a corporation, and keeps a separate set of accounts.

ReceivablesIncludes amounts owing from government through appropriation receivable, short- and long-term trade credit and accounts receivable, accrued investment income, grants, taxes and interest receivable.

NOTE 34. GLOSSARY OF TERMS (CONTINUED)

Sales of goods and servicesRefers to income from the direct provision of goods and services and includes fees and charges for services rendered, sales of goods and services, fees from regulatory services, work done as an agent for private enterprises. It also includes rental income under operating leases and on produced assets such as buildings and entertainment, but excludes rent income from the use of non-produced assets such as land. User charges includes sale of goods and services income.

Supplies and servicesSupplies and services generally represent cost of goods sold and the day-to-day running costs, including maintenance costs, incurred in the normal operations of the Department.

TransactionsTransactions are those economic flows that are considered to arise as a result of policy decisions, usually an interaction between two entities by mutual agreement. They also include flows within an entity such as depreciation where the owner is simultaneously acting as the owner of the depreciating asset and as the consumer of the service provided by the asset. Taxation is regarded as mutually agreed interactions between the government and taxpayers. Transactions can be in kind (e.g. assets provided/given free of charge or for nominal consideration) or where the final consideration is cash. In simple terms, transactions arise from the policy decisions of the government.

Style conventionsFigures in the tables and in the text have been rounded. Discrepancies in tables between totals and sums of components reflect rounding. Percentage variations in all tables are based on the underlying unrounded amounts.

the notation used in the tables is as follows:

– Zero, or rounded to Zero

(xxx) negative numbers

20xx year period

The financial statements and notes are presented based on the illustration for a government department in the 2012-13.


03 FINANCIAL

REPORT

We certify that the attached financial report for the Department of State Development, Business and Innovation has been prepared in accordance with Standing Direction 4.2 of the Financial Management Act 1994, applicable Financial Reporting Directions, Australian Accounting Standards and other mandatory professional reporting requirements.

We further state that, in our opinion, the information set out in the Comprehensive Operating Statement, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes forming part of the financial report, presents fairly the financial transactions during the year ended 30 June 2013 and financial position of the Department as at 30 June 2013.

We are not aware of any circumstance which would render any particulars included in the financial statements to be misleading or inaccurate.

We authorise the attached financial report for issue on 19 August 2013.

Howard Ronaldson Jim Strilakos Secretary Chief Finance Officer

Department of State Development, Department of State Development, Business and Innovation Business and Innovation

Melbourne Melbourne 19 August 2013 19 August 2013

ACCOUNTABLE OFFICER’S AND CHIEF FINANCE OFFICER’S DECLARATION


03 FINANCIAL REPORT

AUDITOR-GENERAL’S REPORT


03 FINANCIAL

REPORT


04 APPENDICES

04 APPENDICES


04 APPENDICES

CONTENTSAppendix 1 Administrative structure of the Department 108

Appendix 2 Workforce information 108

Appendix 3 Consultancies 111

Appendix 4 Victorian Government Business Offices 111

Appendix 5 Human Resource Management 123

Appendix 6 Human Rights and Responsibilities Charter 128

Appendix 7 Freedom of Information 129

Appendix 8 Attestation for compliance with the Ministerial Direction 4.5.5.1–Insurance 129

Appendix 9 Attestation for compliance with the Australian/ New Zealand Risk Management Standard 129

Appendix 10 Implementation of the Victorian Industry Participation Policy 130

Appendix 11 Compliance with the Building Act 1993 130

Appendix 12 Office-based environmental impacts 130

Appendix 13 Financial review of operations and financial conditions 137

Appendix 14 Grants and related assistance 138

Appendix 15 Legislation administered by the Department of State Development, Business and Innovation 157

Appendix 16 Compliance with the Protected Disclosure Act 2012 (formerly, the Whistleblowers Protection Act 2001) 158

Appendix 17 Budget Portfolio Outcomes 160

Appendix 18 Output Groups 166

Appendix 19 Summary of additional Departmental information available upon request 169

Appendix 20 Contact details 170

Appendix 21 Disclosure index 173


04 APPENDICES

The administrative structure of the Department as at 30 June 2013 is represented on pages 6-7 of this report. A current version is also available at the Department of State Development, Business and Innovation’s website at dsdbi.vic.gov.au

APPENDIX 2 WORKFORCE INFORMATION

ONGOING EMPLOYEES

FIXED TERM & CASUAL EMPLOYEES

TOTAL EMPLOYEES

Full-Time (Head count)

Part-Time (Head count)

Total (Head count)

Total (FTE)

Total (FTE) Total (FTE)

June 2012 506 74 580 556 43 599

June 2013 454 54 508 489 25 514

2012 2013

ONGOING EMPLOYEES


ONGOING EMPLOYEES


Head count FTE FTE Head count FTE FTE Totals (FTE)

Gender

Male 248 247 17 221 221 10 231

Female 332 309 26 287 267 16 283

Age

Under 25 1 1 4 5 5 0 5

25-34 98 96 15 85 82 13 95

35-44 168 152 11 149 135 5 140

45-54 171 168 5 152 151 3 154

55-64 122 120 8 105 104 3 107

Over 64 20 19 0 12 12 1 13

Classification

VPS1 1 1 0 1 1 0 1

VPS2 16 14 7 13 12 1 13

VPS3 75 70 3 76 71 0 71

VPS4 97 95 7 85 83 9 92

VPS5 158 150 14 127 120 9 129

VPS6 185 179 9 160 156 5 161

STS 7 7 0 10 10 0 10

Principal Scientist 7 6 0 5 5 0 5

Executives 31 31 3 28 28 1 29

Legal Officers 1 1 0 1 1 0 1

Other 2 2 0 2 2 0 2

APPENDIX 1 ADMINISTRATIVE STRUCTURE OF THE DEPARTMENT


04 APPENDICES

Profile of executive employees as at 30 June 2013

Table 1: Number of executive officers classified into ‘ongoing’ and ‘special projects’

Classification All OngoingSpecial

Projects

No.Variation From Previous Year No.

Variation From Previous Year No.

Variation From Previous Year

Secretary 1 0 1 0 0 0

EO-1 1 0 1 0 0 0

EO-2 15 2 14 2 1 0

EO-3 28 -3 28 1 0 -4

TOTAL(a) 45(b) -1 44 3 1 -4

(a) The Department’s executive envelope at 30 June 2013 is 52. Seven Tourism Victoria executive officer positions are reported separately in the Tourism Victoria Annual Report.

(b) Includes 15 vacancies and 1 EO-3 on unpaid leave at 30 June 2013.

Notes:

i FTE means Full-Time Equivalent.

ii Employees reported with a classification of ‘Other’ are 2.0 (FTE) Ministerial Drivers.

iii All figures reflect employment levels during the last full pay period in June of each year.

iv Excluded are those on leave without pay or absent on secondment, external contractors/consultants, temporary staff employed by employment agencies and statutory appointees.

v Employee numbers for Tourism Victoria are published in its annual report and are not included in the Department’s annual report.

vi For reference, the total FTE for Tourism Victoria is:

June 2012 – 92 FTE

June 2013 – 70 FTE


04 APPENDICES

Table 2: Breakdown of executive officers by gender for ‘Ongoing’ and ‘Special Projects’

Classification Ongoing Special Projects

Male

Variation From

Previous Year Female

Variation From

Previous Year

Current Vacancies

Variation From

Previous Year Male

Variation From

Previous Year Female

Variation From

Previous Year

Current Vacancies

Variation From

Previous Year

Secretary 1 0 0 0 0 0 0 0 0 0 0 0

EO-1 1 1 0 0 0 -1 0 0 0 0 0 0

EO-2 8 0 3 0 3 2 0 0 0 -1 1 1

EO-3 11 -1 5 -2 12 4 0 -1 0 -1 0 -2

TOTAL (a) 21 0 8 -2 15 5 0 -1 0 -2 1 1

(a) Excludes seven Tourism Victoria executive officer positions.

Table 3A: Reconciliation with executive numbers in Note 31 of the Financial Report Table 3B: Note 31 of Financial Report – movement from 2012-13

2012 2013

Executives with total remuneration over $100,000 35 30 Total executives reported in Note 31 of Financial Report at 30 June 2012 43

Executives employed with total remuneration below $100,000 (a) 8 8 Add

Total reported in Note 31 of the Financial Report 43 38 Commenced during 2011-12 3

Add Appointed to executive role from VPS during 2011-12 2

Vacant roles 12 16 Less

Accountable officers 1 1 Separations during 2011-12 10

Less Machinery-of-Government transfers out during 2011-12 0

Separations/LWOP 10 10 Leave without pay commenced during 2011-12 0

Total executive numbers as at 30 June (b) 46 45 Total executives reported in Note 31 of Financial Report at 30 June 2013 38

(a) This reflects executives commencing or ceasing employment part-way through the year.

(b) Excludes seven Tourism Victoria executive officer positions.

Table 4: Departmental portfolio executives 30 June 2013

2012 2013 Variation from previous year

Organisation Name Female Male Total Female Male Total Female Male Total

Australian Grand Prix Corporation 1 5 6 1 5 6 0 0 0

Docklands Studios Melbourne 0 1 1 0 1 1 0 0 0

Emerald Tourist Railway Board 0 1 1 0 2 2 0 1 1

Fed Square Pty Ltd 2 2 4 2 2 4 0 0 0

Film Victoria 1 0 1 1 1 2 0 1 1

Melbourne Convention and Exhibition Trust 5 5 10 5 3 8 0 -2 -2

Melbourne Market Authority 2 3 5 1 2 3 -1 -1 -2

Victorian Major Events Company Ltd 1 2 3 1 2 3 0 0 0

Totals 12 19 31 11 18 29 -1 -1 -2

Information provided by State Services Authority


04 APPENDICES

Details of individual consultancies of $10,000 and over (exclusive of GST)

Name of consultantPurpose of consultancy Start date End date

Total Approved Project Fee (exclusive of GST)

Expenditure 2012/13 (exclusive of GST)

Future expenditure (exclusive of GST)

Ironstone Capital Implementation of the Victorian Coal Development Strategy

01/10/2012 30/11/2012 $373,348.72 $373,348.72 0

The international VGBOs work in partnership with the Department to assist foreign direct investment, export development and whole-of-government activities. They play a pivotal role in raising the profile of Victoria and Victorian businesses overseas including managing the State’s relationships in key regions.

In the financial year 2012-13, the international VGBO network contributed towards the facilitation of more than $2.2 billion of capital investment into Victoria, with investment projects expected to generate more than 4,700 new jobs in Victoria. The offices supported approximately 2,685 Victorian companies in international markets, largely through the Department’s Trade Mission Program. Overall, the Department has reported that Victorian companies participating in trade programs have projected export sales of $1.513 billion in the 13-24 months following the mission1.

1 These figures are projected additional export sales as reported by companies participating in Trade Missions.

APPENDIX 3 CONSULTANCIES

There were no consultants engaged by the Department in 2012-13 where the cost of the engagement was $10,000 or under (exclusive of GST).

APPENDIX 4 VICTORIAN GOVERNMENT BUSINESS OFFICES

The Department has a network of domestic Victorian Government Business Offices (VGBO) including five metropolitan and 11 regional offices. These offices provide assistance for Victorian business to increase access to export markets, facilitate investment, maintain a focus on growth and provide direct engagement with Government.

Business Development Managers located in each of these offices are now closer to businesses in metropolitan and regional areas and have provided opportunities for direct dialogue between business and Government. A greater understanding of business at the enterprise level will assist in informing future policy development.

The international VGBO network comprises 16 representative offices in strategic locations. This includes the recently established offices in Mumbai, Beijing and Chengdu. In addition, the Premier announced the establishment of a new office in Jakarta, Indonesia. The network consists of six Commissioners and an Agent-General across the 16 offices. Commissioners and the Agent-General are administered under the Agent-General and Commissioners for Victoria Act 2007.


04 APPENDICES

> facilitated Reading Room, a global digital agency, which established an office in Melbourne, creating 15 highly-skilled technology jobs in Victoria over two years

Contribution to increased export outcomes for Victoria

The VGBO:

> identified export leads for Victorian businesses and delivered export facilitation programs

> supported more than 40 companies participating in Trade Missions to the following exhibitions: Farnborough Airshow, 2012 London Olympics, Carbon Expo Barcelona, Automechanika and JEC

> supported more than 40 companies visiting European markets with a view to establishing or growing their business

Promotion of Victoria and its industry capabilities

The VGBO:

> raised awareness of the Victorian brand and value proposition, by promoting Victorian products and services

> assisted in the promotion of Victoria’s cultural, sporting and other major events in-market

> facilitated the migration of people with business and trade skills to Victoria

> promoted the following Victorian-based conferences to participants from Europe and Israel: Land Warfare Conference, Australian International Airshow, Carbon Expo Australasia, All Energy Australia and Ausrail

> hosted Victoria Week in London including the following events: VIP London Jazz Festival, Melbourne Cup Networking Event, Skilled and Business Migration Networking Event and AFL in Europe

> hosted 10 migration events across the UK and participated in a further nine externally hosted migration expos promoting opportunities in Victoria

> collaborated with the L’Oreal Melbourne Fashion Festival to hold an event in-market showcasing Victoria’s designers and retail industry

AGENT-GENERAL FOR VICTORIA – UNITED KINGDOM AND EUROPE

The Agent-General represents Victoria in the United Kingdom, Europe and Israel. The Agent-General and the Victorian Government Business Office (VGBO) team delivered a range of activities and initiatives in 2012-13 that included:

Significant deliverables

> A total of 120 Victorian companies participated in trade programs for the UK and Europe, 46 of which participated in Trade Missions that generated projected export sales of $40.5 million over 13-24 months following the Trade Missions

Key deliverables

Contribution to increased investment outcomes for Victoria

The VGBO:

> identified investment leads for Victorian businesses and delivered investment facilitation programs and activities in-market, including visits to Victoria

> worked with a significant number of intermediaries in the United Kingdom, Germany, France, Spain and Israel to help create investment opportunities in Victoria, and developed close-working relationships with Austrade representation in all locations

> partnered with Mercer and the Australian Centre for Financial Studies to launch the Melbourne Mercer Global Pensions Index, which included a seminar, company meetings, networking and media opportunities

> delivered industry briefings to the carbon markets and ICT sectors

> conducted more than 600 meetings with companies to generate a potential interest in investing in Victoria

> assisted Precedent, a UK-headquartered digital communications agency, which opened new offices in Melbourne, creating up to 30 highly-skilled jobs over three years


04 APPENDICES

> worked closely with the Australian Government’s defence network throughout, Europe and Israel, including defence attaches and the Defence Materiel Organisation to promote Victorian capabilities and opportunities

Other significant achievements

The VGBO:

> was responsible for membership growth of more than 300 per cent for the Victorian Connection UK LinkedIn Group

> hosted four Victorian Connection UK networking events

COMMISSIONER FOR VICTORIA – MIDDLE EAST AND NORTH AFRICA

The Commissioner represents Victoria in the Middle East, North Africa and Turkey. The Commissioner and the VGBO delivered a range of activities and initiatives in 2012-13 that included:


> the VGBO supported more than 170 Victorian businesses that participated in the Super Trade Mission to Saudi Arabia, the United Arab Emirates, Qatar and Turkey in February 2013. Companies that participated reported more than $127 million in anticipated additional exports for the 13-24 months following the mission

> Neutral Fuels, an energy company from the United Arab Emirates, established a new biofuel manufacturing facility in Dandenong. The company worked closely from the VGBO and secured McDonald’s Australia as a major customer able to use converted waste cooking oil as biodiesel to fuel its vehicle fleet in Victoria. Neutral Fuels now has waste collection sites at 106 McDonald’s restaurants across Victoria with plans in place to service the remaining 105 restaurants by early 2013

Key deliverables


The VGBO promoted Victoria as an investment destination at:

> the Austrade ‘Australia Unlimited’ Investment Forum in Dubai

> the African Business Forum in Dubai

> hosted a networking event at Carbon Expo Barcelona to promote Victoria’s carbon services capabilities

> worked with the following tertiary institutions to promote Victorian education and research capabilities: Melbourne University, Monash University and RMIT (support was provided at the GeeLab Bizplay RMIT conference in Karlsruhe, Germany)

Strengthening international relationships

The VGBO:

> supported and fostered relations between Victoria and Europe and Israel through high-level government-to-government and government-to-business international engagement in-market

> visited Israel to meet with key stakeholders including the Australian Ambassador to Israel, Austrade and Israel-Australian Chamber of Commerce

> continued to build on existing relationships with Austrade UK, Spain, France, Germany and Israel

Delivery of a whole-of-government approach

The VGBO supported:

> the delivery of whole-of-government initiatives and strategies in-market

> visits to the UK by the Minister for Sport, Recreation and Veterans’ Affairs and the Member for Tarneit

> two Parliamentary Committee visits: the Publics Accounts and Estimates Committee, and the Road Safety Committee

> a visit to the UK and Germany for the CEO of Victoria Employer’s Chamber of Commerce and Industry

> a briefing by the Treasury Corporation of Victoria to key stakeholders in London

Cooperation with the Commonwealth

The VGBO:

> collaborated with Austrade to present investment seminars for the life sciences sector in Germany and the ‘Smart Cities and Sustainability’, ‘Electric Vehicles’ and ‘Food and Agriculture’ seminars in Paris

> co-hosted a Solar Investment Barbecue at ‘InterSolar’, Munich


04 APPENDICES

Cooperation with Commonwealth Government

The VGBO supported:

> the Australia Day events held by the Australian embassies in Abu Dhabi and Riyadh

> the Austrade ‘Australia Unlimited’ event in Dubai

> Austrade with education exhibitions in Russia and Turkey, as well as the International Exhibition and Conference for Higher Education in Riyadh

COMMISSIONER FOR VICTORIA – INDIA

The Commissioner represents Victoria in India. The Commissioner and the VGBOs delivered a range of activities and initiatives in 2012-13 that included:


> the VGBO supported more than 140 Victorian companies and organisations, representing nine industries participating in the Super Trade Mission to India which visited eight Indian cities. Companies that participated in the mission reported projected export sales of $110 million in the 13-24 months following the mission

> The new VGBO in Mumbai was officially opened in October 2012. Victoria is the first Australian state to have a second office in India

> the Victorian Government was a platinum sponsor of Oz Fest India, the only state to have this level of sponsorship. The VGBO led and managed Victoria Week as part of Oz Fest, in which 22 Victorian companies participated

Key deliverables


> Cipla Pharmaceuticals, Indian’s largest and oldest pharmaceutical company established its headquarters for the Australia-New Zealand region in Melbourne

> Bangalore-based Happiest Minds Technologies established its Australian headquarters in Melbourne

> the VGBO facilitated the visits of numerous Indian investor companies to Melbourne

> the Arabian Hotel Investment Conference in Dubai

> the Dubai Annual Investment Conference


The VGBO delivered and supported the following trade activities:

> a food and equine Trade Mission to the United Arab Emirates

> participation in Automechanika Middle East in Dubai

> an automotive after-market parts Trade Mission to the United Arab Emirates


The VGBO participated in:

> the A2 Education Fairs in Baku, Azerbaijan, and Istanbul, Turkey

> the GHEDEX Education Exhibition in Oman

> the International Exhibition and Conference on Higher Education in Saudi Arabia and an education fair in Iraqi Kurdistan

> supporting an eight-delegate mission to Melbourne of education representatives from Qatar, Turkey, Azerbaijan, Kazakhstan and the United Arab Emirates


The VGBO supported and arranged:

> meetings with senior Government officials and business leaders in the United Arab Emirates, Saudi Arabia, Qatar and Turkey. The Australian consulates in Dubai and Istanbul and the Australian embassies in Abu Dhabi, Riyadh and Ankara also assisted the mission

> visits by the Governor of Victoria to Oman, Lebanon, the United Arab Emirates and Turkey

Delivering a whole-of-government approach

The VGBO supported:

> the development of the Victoria – Gulf States Engagement Strategy 2013

> the Australian Business Groups in Dubai, Abu Dhabi, Riyadh and Muscat


04 APPENDICES

> the VGBO hosted two events in Mumbai and Bangalore during the Melbourne International Comedy Festival’s visit to India to promote the festival and the talent, and also to network with the arts cohort in India

> Melbourne’s Indian Film Festival 2013 and the brand ambassador of the festival, Bollywood star Vidya Balan, were announced during the Super Trade Mission

> the VGBO hosted 33 business networking and promotional events during the financial year

> ten of India’s leading PhD students were awarded Victoria India Doctoral Scholarships by the Minister for Innovation, Services and Small Business in Mumbai

> the VGBO provided ongoing advocacy (including many meetings) in support of Tourism Victoria for the recently confirmed Air India direct flights to Melbourne


> the Minister for Innovation, Services and Small Business met with Indian Central Minister for Human Resource Development Pallam Raju and Federal Minister of State for Human Resource Development Shashi Tharoor in India


> the Secretary travelled to Gujarat and had high-level meetings with the State Government of Gujarat and chaired a roundtable with a Confederation of Indian Industry business group

> the Minister for Innovation, Services and Small Business hosted the ‘Women in Global Business’ event in Delhi in partnership with ‘We Connect India’ for women entrepreneurs from New Delhi and the female mission delegates

> the office supported the development of the State’s India Strategy Victoria and India – From Engagement to Partnerships (2013)


> the office worked with the Australian Embassy, consulates and Austrade offices to collaboratively deliver Victoria Week at Oz Fest India and the Super Trade Mission


> the Super Trade Mission and other trade programs delivered by the VGBO and Department trade teams have resulted in numerous Victorian and Indian companies establishing partnerships. Contracts have been won and significant export sales have been achieved

> Victorian VET delegates participated in two significant conferences during the Super Trade Mission sponsored by the Victorian Government:

> the inaugural SkillCon India Conference in Pune, organised by the Maratha Chamber of Commerce and Industries

> Confederation of Indian Industry’s Indo-Australian Skills Meet

> the Victoria India Higher Education Dialogue was conducted in New Delhi. The dialogue drew senior representatives from six Victorian universities and 18 Indian universities and Institutes

> the Trade Director and EPA Victoria represented Victoria at the International Conference on Environment Compliance and Enforcement

> the principal leadership program for school principals from Bangalore and Delhi concluded. This program is a follow up to the sister-school partnership program conducted in September to October 2012 when twelve Indian school principals visited Melbourne

> a delegation of 20 ICT companies from the Indian state of Kerala visited Melbourne after attending CeBIT Australia. The delegation was led by the Principal Secretary, ICT, State Government of Kerala, India


> the Minister for Innovation, Services and Small Business hosted an event with Delhi stakeholders during Oz Fest with participants from MasterChef Australia to celebrate the next season in Melbourne


04 APPENDICES

> Victorian Urbanisation and Infrastructure Mission of 10 companies to Malaysia and Indonesia

> Victorian Food and Beverage Mission to Food and Hotel Indonesia of 33 companies

> Victorian Mining and Engineering Technology Services Mission of 19 companies to Ozmine Jakarta Trade Show

> Victorian ICT Mission of 30 companies to CommunicAsia ICT Trade Show

The VGBO assisted:

> Dairy Livestock Exports to obtain a $3 million contract to supply 1,200 heifers to the Indofood Group in Indonesia

> Victorian company, Baby Royale Pty Ltd, to secure a major contract in Malaysia to supply organic baby food to 350 supermarkets


The VGBO:

> launched the Victorian Connection alumni groups in Singapore, Malaysia, Indonesia and Vietnam, attended by more than 450 Victorian alumni and business contacts

> organised a ‘Put Victoria on Your Table’ gala event for more than 100 key food buyers as part of Food Hotel Indonesia 2013, and provided assistance to Victorian exhibitors

> participated in the 2013 Study in Melbourne Fair in Penang and Kuala Lumpur promoting Victorian education institutions

> facilitated 23 Malaysian companies, 13 Singaporean companies and 50 Indonesian companies to attend the International Food and Beverage Trade Week in Melbourne

> arranged and assisted with the Industry Capability Network’s healthcare mission to explore opportunities for investment and collaboration in South-East Asia

> supported Victorian International Education Cluster (VIEC) members to engage with the Indonesian Government’s National Development Planning Agency (Bappenas) and the World Bank’s Spirit Program:

COMMISSIONER FOR VICTORIA – SOUTH-EAST ASIA

The Commissioner is Victoria’s representative in South-East Asia. The Commissioner and the VGBO delivered a range of activities and initiatives in 2012-13 that included:


> the VGBO supported more than 300 companies and organisations from across 10 key industries participating in the Victorian Government’s first Super Trade Mission to South-East Asia in June 2013. This was the largest ever Australian Trade Mission to South-East Asia with components staged in Malaysia, Indonesia, Singapore, Vietnam, Thailand and the Philippines. In total, more than 1,500 business meetings and interactions were arranged. Companies that participated reported projected export sales of $106 million in the 13-24 months following the mission

> the VGBO Jakarta was officially launched in June 2013 by the Premier during the Super Trade Mission to South-East Asia

> the Premier announced the expansion of the Hamer Scholarship Program to Indonesia during the Super Trade Mission

Key deliverables


The VGBO:

> progressed a number of investments in the aviation, ICT and hospitality sectors

> organised investment-focused roundtables hosted by the Premier in Malaysia, Singapore and Indonesia

> facilitated the investment by Singapore-based STVE in a new aviation services business in Tullamarine


The VGBO led the:

> Victorian Vocational Education and Training Mission of 10 companies to Malaysia and Indonesia


04 APPENDICES

COMMISSIONER FOR VICTORIA – CHINA

The Commissioner represents Victoria in Greater China. The Commissioner and the VGBO teams delivered a range of activities and initiatives in 2012-13 that included:


> the VGBO supported more than 406 Victorian organisations and more than 650 delegates participanting in the Super Trade Mission to China in September 2012. About 42 per cent of Trade Mission participants were new to the Chinese market and 32 per cent (prior to the Trade Mission), were not involved in exporting. As part of the mission, more than 2,000 business-to-business meetings were held across 13 Chinese cities. Companies that participated in the mission projected export sales of $964 million in the 13-24 months following the mission

During the Super Trade Mission the VGBO:

> delivered the Premier’s Infrastructure and Investment Roundtable meeting in Beijing with about 60 selected participants representing China’s largest financial and industrial conglomerates

> established and officially opened the VGBO in central Beijing

> established the VGBO in Chengdu, capital of Sichuan Province and the commercial gateway to China’s burgeoning south-west economy

Key deliverables


> the world’s largest bank, the Beijing headquartered Industrial Commercial Bank of China formally established its first Melbourne branch

> the China Construction Bank opened its first Melbourne branch

> after three years of negotiations, Shanghai Electric Group Company Power has established its corporate headquarters in Melbourne ahead of its intended $200 million investment in an advanced lignite processing project in the Latrobe Valley

> in addition to providing VIEC members with access to 170 Spirit scholarship recipients, Bappenas has agreed to send up to 10 Indonesian interns a year to Victoria as part of its capacity-building program

> promoted Australian Automotive Week, including through targeted invitations to VIPs and facilitating travel for selected journalists

> worked with Deakin University and Victorian Government agencies, such as Places Victoria, to facilitate a visit by a delegation from Indonesia’s Riau Island Province, to share Victorian expertise in developing ecologically and economically sustainable cities


The VGBO facilitated:

> a visit to Victoria by a delegation of 86 education professionals from the Terengganu State Department of Education, Malaysia

> a visit to Victoria by the governance division of the Malaysian Ministry of Higher Education


> the VGBO supported the development of the South-East Asia Market Engagement Plan (2013)

Cooperation with the Commonwealth Government

The VGBO:

> supported Austrade Malaysia’s agribusiness event as part of the Malaysia Agriculture, Horticulture and Agrotourism International Show 2012. The Commissioner presented on agribusiness investment opportunities in Victoria

> undertook a joint approach with Austrade Malaysia to engage with the Malaysian automotive industry. The new approach saw collaboration and joint attendance at meetings with Malaysian automotive companies and speaking roles at each other’s auto-related events, including the auto component of the Super Trade Mission and Austrade’s launch of its Australian Automotive Industry Capability Statement in Malaysia


04 APPENDICES

The VGBO participated in the following education events under the Study Melbourne brand:

> China International Education Exhibition Tour 2013 (CIEET) in Beijing, Shenyang, Shanghai, Fuzhou and Guangzhou

> JJL Education Group International Student Recruitment Fair in Shenzhen and Guangzhou

> IPD Education Group International Student Recruitment Fair in Shanghai and Chengdu

> EIC Education Group International Student Recruitment Fair in Wuhan and Taiwan

> Victorian Government Education Agents Briefing in Taipei

> Study in Melbourne Seminar in Taipei

The VGBO supported and promoted Victoria’s trade interests at the following events:

> Children, Baby and Maternity Exhibition in Shanghai

> Auto Shanghai Summit 2013, part of the 15th Shanghai International Automobile Industry Exhibition

> SIAL (Asia’s leading food and beverage exhibition) in Shanghai

> Biofach China in Shanghai

> Hong Kong International Wine and Spirits Fair

> Cosmoprof (Asia’s leading beauty and cosmetics trade show) in Hong Kong

> Mines and Money Hong Kong

> Hong Kong International ICT Expo

> HOFEX (Asia’s leading food and hospitality exhibition) in Hong Kong

> Hong Kong International Medical Devices and Supplies Fair

> Taipei Food Show

The VGBO hosted the following events:

> ICT Networking Function and Seminar in Taipei

> media function in Hong Kong


> the VGBO organised and supported the Premier’s participation in the Hong Kong-based Endeavour Scholarship awards

> Viplus Dairy-Infant Formula established a canning plant in Victoria for exports to China


The China VGBOs provided support to:

> Victorian ICT Trade Mission to Hong Kong, Taipei and Beijing

> an inbound Chinese buyers and delegates visit to Avalon Airshow, Food week and Auto week

> Study Melbourne exhibitions and booths at four major education exhibitions in China

> an exhibition booth at the Hong Kong Mines and Money event to promote the new Mines and Money Conference in Melbourne 2014

> the Commissioner hosted a VIP function for senior representatives of the China Commercial Aircraft Company (COMAC), in support of the research collaboration and export activities between COMAC and Advanced Composite Structures Australia

Promoting Victoria and its industry capabilities

> the advent of the new Significant Investor Visa category by the Commonwealth has seen a significant increase in the interest of private investors in Victoria’s economy. The VGBO organised or participated in more than 70 seminars across China promoting Victoria as the right destination for potential private investors

The VGBO:

> led negotiations to partner with the Boao Forum for Asia, to potentially hold a key food security conference in Melbourne in 2014-15

> coordinated the visit to Victoria by Madam Xu Jinrong, Vice-Governor of Jiangsu Province, in December 2012. The visit was a follow-up to the Premier’s visit to Nanjing in September 2012, where discussions took place regarding furthering economic, cultural and sister-state ties between Victoria and Jiangsu

> undertook Invest Victoria road shows in North-East China (Shenyang, Changchun, Harbin, Dalian), central China (Chongqing, Wuhan) and Taiwan, including meetings with provincial and municipal-level government counterparts and leaders


04 APPENDICES

COMMISSIONER FOR VICTORIA – JAPAN AND SOUTH KOREA

The Commissioner represents Victoria in Japan and the Republic of Korea. The Commissioner and the VGBO delivered a range of activities and initiatives in 2012-13 that included:


The VGBO:

> delivered two major trade events, Foodex Japan and Seoul Food Korea. Trade outcomes exceeded $8 million with a total of 38 companies attending

> assisted new Memorandum of Understanding engagements between Tamagawa University and three Victorian universities (Deakin, Swinburne, Victoria). Tamagawa University will send 90 students for a year of study every year from 2014 and onwards

Key deliverables


The VGBO:

> delivered a Victoria Investment Seminar in Tokyo, in co-operation with key partners (Bank of Tokyo Mitsubishi UFJ, JETRO and Austrade)

> identified and advanced 23 investment opportunities across Japan and Korea for future development including a potential significant Korean investment in regional Victoria

> facilitated programs for two investment-related business delegations from Victoria (NeuroScience Victoria in October and STC Victoria)

> delivered an inward investment and trade delegation from both Japan and Korea of 35 to the Melbourne Good Food and Wine program and Australian Automotive Week 2013

> assisted and organised 11 individual Japanese investor visits to Victoria

> facilitated a Korean energy company to sign a Letter of Intent with Environmental Clean Technologies in Melbourne

> supported Hyundai Motor and RMIT to sign for the third joint research and development project for reducing in-cabin wind noise

> the Commissioner participated and represented Victoria in the Australia-China strategic partnership related events in Shanghai and Beijing during the Prime Minister’s China visit


The VGBO:

> led the negotiation with Sichuan Airlines for direct air services between Melbourne and Chengdu

> supported the Hamer Scholarships program with two rounds of participants completing their studies in China. Relationships have been developed with Jiangsu-based universities and the Jiangsu Education Department. To date 57 Victorians have been awarded a Hamer Scholarship

> supported a visit to China by the Minister for Education and the Secretary of the Department of Education and Early Childhood Development

> supported the then Department of Primary Industries in the organisation and promotion of the Advanced Lignite Demonstration Program

> supported the Department of Education and Early Childhood Development in conducting research and providing administrative support to the Victorian Secondary Schools China Immersion Scholarship Initiative

> supported Victoria’s participation in the China Mining Exhibition in Tianjin

> supported the development of ‘Engaging China – Strengthening Victoria’ (2012), Victoria’s strategy for deeper engagement with China


The VGBO:

> worked with the Australian Embassy in Beijing on a number of programs including the Premier’s visit to the Ministry of Commerce and briefings for the Minister for Education

> supported numerous Austrade-led trade and investment events in Shanghai, Beijing, Hong Kong, Chengdu and Guangzhou


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> coordinated Victorian presence at student recruitment event ‘Study Melbourne Fair’ in Busan, South Korea, as well as visiting local universities with 10 Victorian education and training providers participating

> delivered an education mission ‘Study Melbourne Fair Japan 2013’ with 18 education and training providers to develop new B2B and B2C engagements in both Tokyo and Osaka

> facilitated an auto-industry journalist’s visit to Victoria for Auto Week in March 2013 resulting in media coverage on Victorian automotive industry’s capability in the Nikkei Automotive Technology

> held a Victorian Wine event for six visiting Victorian wine-makers, matching them with Japanese wine journalists, importers and sommeliers

> supported the visit to Victorian wine regions by the leading wine journals in Japan and Korea. Special features on the wine industry/wine regions published, including in Wine Review Korea

> sponsored two Japanese wine specialists on the Busby wine tour of Victoria. One educator held three Victorian wine seminars in Tokyo after the visit

> as a result of attending the inward Trade Mission to the Melbourne Good Food and Wine Festival, HomePlus (Tesco) Korea purchased 20 tonnes of Victorian beef and will run a two-week nationwide promotion in 136 Korean supermarket stores


The VGBO:

> coordinated with the Osaka Municipal Government and Melbourne City, Victorian Employers’ Chamber of Commerce and Industry and the Australian Industry Group to facilitate delivery of events of 35th anniversary of the sister-city relationship between Osaka and Melbourne

> supported the visit to Melbourne by the Governor of Aichi Prefecture in July 2012 during which he met:


The VGBO:

> organised, participated in or attended 13 trade shows and events, including major food trade shows, Foodex and Seoul Foods

> assisted 10 ICT companies visiting the markets. New business contracts were established by Media Equation, Hardcat, Sissit and QSR International

> assisted QSR International to set up an office in Japan

> introduced Takasago (Japanese ingredient manufacturer) to a group of Victorian suppliers to provide innovative contract manufacturing of new functional food ingredients

> supported Murray River Organics in finalising contracts for a new export business from Victoria to Japan and Korea for organic raisins. Revenue is expected to exceed $1 million by 2015

> supported Nature’s Gift and Australian Premium Food Exports, which will supply TLC Dogfood Japan (and Korea) with pet food products from September 2013. New export business with expected annual sales of $500,000


The VGBO:

> facilitated the visit to Tokyo by NeuroScience Victoria in October. Helped seven neuroscience researchers from Victoria to organize seminars and individual company visits

> exhibited in the Nanotech Japan show in January in cooperation with the Small Technology Cluster Victoria delegation in January, which included 12 nanotech companies

> organised the Victorian Government schools study tour, Teacher Exchange Program seminar and education agents seminar

> coordinated a Victorian presence in the Austrade Korea Education Roadshow ‘Australia Future Unlimited Education Exhibition’ in Korea to promote Study Melbourne and assist 17 Victorian education and training providers participate


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> provided ongoing advocacy and support for Tourism Victoria’s program to secure direct flights from Korea and Japan to Melbourne


> a visit by an editorial writer of Hokkaido Shinbun Press was coordinated with the Australian Embassy in Tokyo. Victoria was selected as one of the regions within Australia to showcase stable energy supply/usage, specifically focusing on brown coal and carbon capture and storage

> the VGBO worked in close cooperation with Austrade Korea and Japan to organise business matching during Seoul Food and Foodex Japan, education promotion events, the Infrastructure Seminar in Seoul, and a private-public-partnership inward mission to Victoria by more than 40 Japanese participants (which also included cooperation with the Australia Japan Business Co-operation Committee)

COMMISSIONER FOR VICTORIA – AMERICAS

The Commissioner represents Victoria in the Americas. The Commissioner and the VGBO delivered a range of activities and initiatives in 2012-13 that included:


The VGBO:

> delivered and supported significant investment projects from the United States into Victorian industries such as manufacturing, retail, defence, food and beverage, financial services, energy and ICT

> supported approximately 330 Victorian companies participating in export programs in the United States, Canada and Latin America. Projected export sales of $390 million over the next 13-24 months following the trade programs, including support through the Technology Trade and International Partnering Program

> the Premier to discuss the sister-state relationship between Victoria and Aichi, an arts and culture Memorandum of Understanding and a Teacher Assistant Program announcement

> the Minister for Innovation, Services and Small Business to discuss Victorian international engagement, business and trade links between Victoria and Japan

> representatives from Deakin University and Swinburne University of Technology and announced that they would offer two scholarships to the Aichi Board of Education for developing English teaching skills


The VGBO:

> delivered a visit to Korea by the Treasurer, promoting Victoria’s bond issue and major private-public-partnership projects which created strong interest, especially from the Korean National Pension Service, Korean Investment Corporation and Hyundai

> coordinated the visit of senior officials from the then Department of Primary Industries to present at the Clean Coal Day International Conference and to meet with Japanese Ministry of Economy, Trade and Industry, the coal energy industry body and key business leaders from energy and technology field

> delivered workshops in cooperation with the then Department of Primary Industries on the Advanced Lignite Demonstration Program in Japan and Korea to introduce significant Government support for pre-commercial demonstration-scale coal upgrading processes

> coordinated a study visit by the Tokyo Medical Centre to study Victoria’s world-leading training system for medical triage and emergency medicine. The delegation met with the Premier, Governor and the Department of Health, and undertook two hospital visits with future cooperation and exchange opportunities in the cutting-edge medical and bioscience field being pursued


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The VGBO:

> supported Victorian wine producers for a targeted promotion of Victorian wines to the Liquor Control Board of Ontario in Toronto, Canada

> facilitated and supported Victorian IT companies utilising incubator facilities and services in Silicon Valley Plug and Play Tech Centre for Start Ups

> led a Trade Mission of Victorian companies to Chile and Brazil on urban design, infrastructure, water and sports event management

Promoting Victoria and its industry capabilities

The VGBO:

> promoted Victoria’s capabilities in life sciences through the establishment of an agreement with the Boston-based Massachusetts Life Sciences Centre. This agreement supports Victorian life science companies in undertaking late-stage research and development projects, as part of the Building Global Bridges Program

> hosted the New York launch of the Melbourne Mercer Global Pension Index, attended by key figures from the New York financial sector and funds management industry

> hosted an aerospace and defence reception with Victorian defence manufacturers and leading US Defence contractors at the Embassy of Australia, Washington


The VGBO:

> facilitated a visit by Massachusetts Life Sciences Centre to attend Ausbiotech 2012 in Melbourne

> supported US Trade Mission delegations (including State of Virginia and four leading US defence manufacturers) to attend the Land Warfare Conference in Melbourne

> supported US Trade Mission delegations to attend the Australian International Air show

> facilitated a visit to Victoria by the Mayor of Indianapolis that focussed on sports, business, major events, life sciences and advanced manufacturing

Key deliverables


The VGBO facilitated investments into Victoria that included:

> Mars investing $45 million to improve the competitiveness and sustainability of its manufacturing facility

> Zendesk establishing an Australian Development Centre in Melbourne, creating 20 jobs

> Vistaprint upgrading its manufacturing facility, creating more than 60 jobs

> Essmueller investing $20 million to expand its Australian facility, creating 40 jobs


The VGBO supported Victorian companies and organisations:

> at MinExpo, an international mining conference in the USA

> attending the Modern Day Marine Expo

> at the Performance Racing Trade Industry Show as part of the aftermarket automobile parts manufacturers’ Trade Mission

> exhibiting at the WEFTEC water technology conference as part of the Water Australia industry capability mission

> at the Association of the United States Army (AUSA) Defence Trade Fair, Washington DC

> participating in the Silicon Valley Global Acceleration Program

> attending the BIO2013 Convention in Chicago

> attending the Latin America Aerospace and Defence Conference in Brazil

> participating in the Aerospace and Defence Trade Mission to the United States to meet with key US defence manufacturers and contractors

> participating in the auto Trade Mission to Detroit meeting with key United States manufacturers


The VGBO supported visits to the North America, including:

> the Hon. David Davis, Minister for Health to Ottawa, Boston, Washington DC and San Francisco

> the Hon. Gordon Rich-Phillips, Minister for Technology to Chicago, Seattle and San Francisco

> the Hon. David Hodgett, Minister for Manufacturing to Washington DC, New York and Detroit

> Department of Primary Industries CarbonNet industry sounding mission to the United States

> Mr Andrew Jaspan, Editor-in-Chief, The Conversation

> Parliamentary Law Reform Committee to Toronto, Ottawa, New York, Washington DC and Los Angeles

> Parliamentary Committee for Electoral Matters to California, Louisiana, Florida and Washington DC


The VGBO:

> hosted with the Australian Consulate San Francisco, two IT roundtable events with Facebook and Yelp on investment in Australia

> collaborated with the Commonwealth Government to host an aerospace and defence networking reception at the Embassy of Australia. This was supported by Austrade and the Defence Materiel Organisation to promote the strengths of the sector in Victoria

> worked with the Commonwealth to promote the strengths of Victoria and Australia in a joint presentation to the Indiana World Trade Association as part of Indiana World Trade Day

> collaborated with the Australian Trade Commission in both San Francisco and New York to support events to promote Australia’s research and development tax credit to key US investors in the technology sector


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(A) OCCUPATIONAL HEALTH AND SAFETY

Lag indicators 2010-11 2011-12 2012-13

INCIDENTS AND HAZARDS

Number 27 22 20

Rate per 100 FTE 3.51 3.2 3.4

Number of standard claims 4 5 2

Rate of standard claims per 100 FTE 0.52 0.72 0.34

Number of lost time claims 1 4 1

Rate of lost time claims per 100 FTE 0.13 0.58 0.17

CLAIMS

Number of claims exceeding 13 weeks 1 1 0

Rate of lost time claims per 100 FTE 0.13 0.14 0

FATALITIES

Fatalities claims Nil Nil Nil

CLAIM COSTS

Average cost per standard claim $24,869 $23,808 $7,093

PREMIUM RATE

Department’s Premium Rate 0.5254 0.5159 0.2715

RETURN TO WORK

Percentage of claims with a Return to Work plan < 30 days 100% 100% 100%

Lead indicators of OH&S Management 2012-13

MANAGEMENT COMMITMENT

Evidence of OH&S Policy Statement Policy Statement displayed on the Department intranet

OH&S Objectives Objectives identified in the OH&S Strategy 2012-14 are being progressively implemented through annual actions plan

Regular reporting to Senior Management Minutes of quarterly OH&S Committee meetings tabled at Strategy and Management Team meetings and published on the Department intranet

Evidence of OH&S criteria in purchasing guidelines (including goods, services and personnel)

Standard contract agreements require contractors to observe all applicable industrial laws and awards in delivering services to the Department

CONSULTATION

Evidence of agreed structure of Designated Work Groups, Health and Safety Representatives and Issue Resolution Procedures

Representative Designated Work Groups (DWGs) established

DWGs revised as a result of location changes. Health and Safety Representatives (HSRs) elected for DWGs

OH&S Committee, chaired by Deputy Secretary Corporate Services and Communications, meets quarterly. All HSRs are members of the Committee

Compliance with agreed structure on DWGs, HSRs and IRPs Issue Resolution Policies (IRP) and procedures displayed on notice boards and are accessible via the Department intranet

APPENDIX 5 HUMAN RESOURCE MANAGEMENT


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At the Department, our goal is to foster a health and safety culture and environment that will protect our people from workplace illness and injuries.

Our OH&S strategic objectives are:

> proactive initiatives to build a culture of health, safety and wellbeing

> integrating our corporate health and OH&S programs

> increased education and information to ensure all managers and employees are supported to effectively manage their OH&S responsibilities

> early intervention and an increased focus on effectively managing workplace injuries

We recognise that achieving our objectives requires the commitment of everyone at the Department – our leaders, people managers and employees. We will continue to reinforce health and safety accountability at all levels of the Department to embed health and safety as part of the way we do business. Building this culture requires effective and meaningful consultation with employees on OH&S issues, enabling everyone to contribute to decisions that may affect their health, safety and wellbeing at work.

Lead indicators of OH&S Management 2012-13

RISK MANAGEMENT

Internal audits/inspections Biannual workplace inspection program in place. A total of 16 inspections have been conducted at Department sites across Victoria

Identified issues actioned arising from internal audits Improvements to Driver Safety program through provision of emergency cards/instructions in cars, introduction of a driver pre-trip checklist and improved driver safety information to support the policy

HSR Provisional Improvement Notices (PINs) No PINs issued

WorkSafe notices No notices issued

TRAINING

Induction Online OH&S training module is mandated for all new employees and contractors. Completion rates are now reported to the OH&S Committee and in corporate reporting

People managers An online managers’ training program, tailored to the Department’s OH&S management system and risks is mandatory for all people managers. Completion rates are reported to the OH&S Committee

Contractors, temps and visitors Workplace OH&S induction checklist for managers included in On-boarding and Induction Guide. Checklist regularly reviewed and updated

HSR Initial five-day training Completed by HSR following election to role. Six HSRs completed this training during 2012-13

HSR refresher training Facilitated annually on site for HSRs. Five HSRs attended this training in February 2013

We continue to support our goals by providing managers and employees with appropriate occupational health and safety information, effective systems to prevent injury, and proactive holistic strategies that focus on health and wellbeing. Accordingly, the Department has undertaken a range of initiatives over the past 12 months, including:

> continued implementation of ‘Wellbeing and Work’, the Department’s OH&S strategy for 2012-14

> introduction of the Professional Workplace Framework, including a policy and detailed guidelines designed to prevent and address unprofessional and unacceptable behaviour and manage workplace conflict effectively. The framework will be supported by a series of state-wide workshops over the coming 12 months

> introduction of an educational Workplace Psychological Health Program that is designed to minimise and effectively manage workplace psychological hazards

> provision of two mindful health programs, involving 28 employees, to support the Workplace Psychological Health Program

> implementation of a new OH&S Risk Register within divisions


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responsibilities and behaviours expected of VPS employees. Completion of this module is a pre-requisite for confirmation of appointment following a probationary period.

Agency personnel engaged through the seven VPS-approved Master Vendors are advised, prior to commencing employment with the Department, that they are expected to abide by the Code of Conduct and the Department’s values.

There is a discrete site on the Department intranet to inform contractors and consultants engaged by the Department of their obligation to comply with the Code of Conduct, the Department’s values and relevant policies and procedures.

Information in relation to public sector conduct and the VPS employment principles is promoted via policies on the intranet and through expert advice provided by Human Resources.

Organisational values

Accountability, respect, responsiveness, integrity, impartiality and leadership

The Department has embraced these values to guide employee behaviour and promote a productive and inclusive culture.

The values are progressively being embedded into a range of human resource activities, including:

> performance management systems (both executive and non-executive)

> position descriptions for job advertisements

> relevant learning and development programs

The Department recognises that living these values will help to create a high-performance workplace that is characterised by positive relationships and respect for others.

(C) SELECTION ON MERIT / EXEMPTIONS FROM ADVERTISEMENT

Recruitment and selection processes uphold merit and equity and are fully operational within the Department. Policies, guidelines and associated documentation enshrining merit and equity continue to be promoted through training, marketing material and expert advice provided by Human Resources.

The authority to exempt vacancies from advertisement rests with the Secretary and/or authorised delegates in prescribed circumstances.

> continued implementation of mandatory OH&S managers’ training for current and new people managers

> improved instructions for emergency wardens and introduction of a Personal Emergency Evacuation Plan process for mobility-impaired employees

> continued to conduct a monthly Safety Awareness Program throughout the Department

> ongoing provision of a holistic Health and Wellbeing Program, which includes regular seminars, education, an online program and onsite health coaching services

> 94 employees and 16 executives underwent a comprehensive preventative health assessment

> 60 per cent of employees had an annual flu vaccination

> quarterly meetings of the Department’s OH&S Committee to discuss and review health and safety risks, consider policy issues and develop proactive OH&S strategies; committee activities are further supported by a detailed OH&S planning calendar

> a total of 38 of the 56 First Aid officers completed the accredited Automated External Defibrillator/CPR course

> introduction of an annual First Aid Officers network forum

The Department has maintained its strong record in providing a safe and healthy work environment, as demonstrated by an improved WorkCover performance rating and a low-rate of recorded workplace incidents and injuries.

(B) PUBLIC ADMINISTRATION VALUES AND EMPLOYMENT PRINCIPLES

Driving public sector values

The Department is committed to driving an organisational culture that attracts, develops, motivates and retains a diverse team of talented, high-performing employees.

The Code of Conduct is promoted to new employees of the Department via an online learning module and through the Department’s On-boarding and Induction Guide. The online compliance module explores ethical issues, and promotes understanding and awareness of the rights,


04 APPENDICES

Second-year implementation highlights included:

> continued work with each Group Training Company to increase the number of applications from indigenous people for the Department’s traineeship placements through the Youth Employment Scheme

> providing information to Aboriginal employees about the Department’s Cultural and Ceremonial Leave provision

> celebration of NAIDOC Week though a combined event with the former Department of Transport and Department of Justice

(H) YOUNG PEOPLE

Youth Employment Scheme

The Department has participated in the Youth Employment Scheme (YES) – formerly known as the Victoriaworks for Young People Program – since its inception, and remains committed to meeting youth employment goals and targets each year.

In 2012-13, the Department accepted 20 traineeship placements across its offices. The majority of YES trainees are in the administrative, information technology and clerical categories, with trainees undertaking diverse roles that provide valuable on-the-job training.

The Department will continue to actively participate in the scheme to help build trainees’ skills and provide employment opportunities for young people.

(I) CULTURALLY AND LINGUISTICALLY DIVERSE COMMUNITIES

The Department’s Cultural Diversity Plan reflects our commitment to harnessing the economic benefits of diversity by ensuring:

> the Department’s programs and services pay due regard to cultural diversity in terms of awareness, access and utilisation

> cultural diversity is recognised and promoted in current and future programs as an asset that encourages growth and development

> the Department’s internal processes, systems and practices reflect a best-practice approach to cultural diversity

The Department provides a full report on its initiatives and achievements in multicultural affairs annually to the Victorian Multicultural Commission as required by the Multicultural Victoria Act 2011.

(D) DISPUTE SETTLEMENTThe Department’s dispute settlement process provides for disputes arising from a number of areas, including actions arising from section 64 of the Public Administration Act 2004. The Department’s procedures provide for early intervention and informal resolution processes to be utilised wherever possible. There were no formal disputes lodged in 2012-13.

(E) DIVERSITYThe Department is committed to employing people with a diverse range of characteristics, backgrounds and perspectives, as we recognise the invaluable contribution that these differences make to our Department.

Over the last year, the Department’s Diversity Program has developed, coordinated and promoted a broad range of initiatives aimed at increasing engagement with diverse employee populations, including women; Aboriginal and Torres Strait Islanders; culturally and linguistically diverse employees; and people with a disability.

(F) WOMEN’S AFFAIRSThe Department’s internal Women’s Network Forums have remained a popular feature of the Diversity Program and promote the continued development of female employees. The forums provided opportunities to hear from female leaders from the private and public sectors about their experiences and perspectives, as well as opportunities for discussion and networking with colleagues across the Department.

Guest speakers in the past 12 months have included Jenni Tosi, Chief Executive Officer of Film Victoria, and Detective Inspector Kerryn Hynam, Victoria Police.

The forums were consistently well-attended by a minimum of 60 employees, who actively participated in asking questions, and who networked after the formalities.

(G) INDIGENOUS COMMUNITIESThe Department’s Aboriginal Employment Plan 2011-13 aligns with Karreeta Yirramboi, the Victorian Aboriginal Public Sector Employment and Career Development Action Plan 2010-2015. The plan sets a one per cent target for indigenous employment within the Department by 30 June 2015.


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The Department has recruited five graduates as part of the 2013 intake and will host a further 10 graduates on rotation during the course of the 2013 program.

(L) MENTORING PROGRAMMentoring is often cited by corporate and government leaders as a key factor in successful workforce capability development. The Department has implemented a mentoring program to build and to achieve personal, professional and organisational goals. This program has been running since 2002-03 and, in 2012-13, attracted 50 participants (25 mentees and their mentors) representing about 13 per cent of the workforce.

The focus of the 2012-13 Mentoring Program was to inspire VPS mentees to strive for higher levels of performance through the development of an ongoing relationship with a senior leader – an executive officer who can support the mentee to realise their professional goals and career opportunities.

(M) LEARNING AND DEVELOPMENTDuring the 2012-13 financial year, 402 participants attended 34 Departmental and interdepartmental learning and development workshops or participated in 21 eLearning programs.

(N) SUPERANNUATION SCHEME Department employees who commenced before 1994 are members of defined benefits schemes such as the Revised, New or Transport schemes. These schemes are administered by the Government Superannuation Office, now an operating division of Emergency Services and State Superannuation. Since 1994, all new employees are able to nominate to have their employer contributions made to any complying accumulation fund of their choice, including VicSuper.

(O) DECLARATION OF PECUNIARY INTEREST

In accordance with the general guidelines for declaration of pecuniary interest, relevant officers have completed a declaration for the financial year.

Shares held by senior officers in a statutory authority or subsidiary:

> no officer holds shares as a nominee or beneficiary in a statutory authority or subsidiary

(J) COMPLIANCE WITH THE DISABILITY ACT 2006

The Disability Act 2006 requires that all public sector bodies prepare a Disability Action Plan and that Departments report on the implementation of their plan in their annual report (s.38).

The Department’s commitment to a more inclusive workforce for people with a disability has been reinforced during 2012-13 with the launch of the Department’s 2012-2015 Disability Action Plan (DAP). The DAP outlines the further actions that the Department will take to address potential barriers for people with disabilities and includes four key principles that the Department:

> is accessible to all our customers, stakeholders and staff with a disability

> recognises the significant value of employing and retaining people with a disability

> recognises, includes and promotes the participation of people with a disability in our programs and in our community

> has a shared accountability for reducing issues and barriers to people with a disability

A highlight this year was the celebration of International Day of People with Disability. The Department held a staff forum, featuring Mark Glascodine – careers counsellor for people with a disability, researcher, and recipient of the Winston Churchill Fellowship in 2011.

(K) GRADUATE RECRUITMENT AND DEVELOPMENT SCHEME

The Victorian Public Service Graduate Recruitment and Development Scheme (GRADS) provides the Department with a valuable source of high-potential candidates with a variety of academic qualifications and experience.

The Department’s continued commitment to utilising GRADS to build and develop a talent pipeline was demonstrated by the recruitment and selection of six graduates for the 2012 program. All six graduates have been appointed to ongoing positions in the Department, following successful completion of the 12-month program in January 2013.


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Contract Number Status Title

Start Date

Expiry Date

Total Value

231-0151 Current Construction of Western Precinct of Melbourne Park Tennis Redevelopment

07/12/2011 31/12/2014 $31,913,040

(R) COMPLIANCE WITH THE CARERS RECOGNITION ACT 2012

The Carers Recognition Act 2012 requires that all State Government departments responsible for developing or providing policies, programs or services that affect people in care relationships report on how they met their obligations under the Act in their annual report (s.12).

During 2012-13, the Department has continued to promote workplace flexibility for all employees, including those in care relationships. Further work will be undertaken during the 2013-14 financial year to make additional resources available to employees and their managers.

APPENDIX 6 HUMAN RIGHTS AND RESPONSIBILITIES CHARTER

The Charter of Human Rights and Responsibilities Act 2006 (the Charter) applies to all public authorities, including Government departments and agencies.

The Charter reinforces the protection of fundamental human rights and ensures that human rights are taken into account by the Government when it makes administrative decisions.

The Department has a process for the assessment of new legislation and policies for their compatibility with the Charter.

Staff in the Department participate in human rights training upon induction, and education about human rights is encouraged and promoted on an ongoing basis.

(P) NATIONAL COMPETITION POLICYUnder the National Competition Policy, the guiding legislative principle is that legislation, including future legislative proposals, should not restrict competition unless it can be demonstrated that:

> the benefits of the restriction to the community as a whole outweigh the costs

> the objectives of the legislation can only be achieved by restricting competition

The Department continues to comply with the requirements of the National Competition Policy.

Competitive neutrality requires Government businesses to ensure where services compete, or potentially compete with the private sector, any advantage arising solely from their Government ownership be removed if they are not in the public interest. Government businesses are required to cost and price these services as if they were privately owned and thus be fully cost reflective. Competitive neutrality policy provides Government businesses with a tool to enhance decisions on resource allocation. This policy does not override other policy objectives of Government and focuses on efficiency in the provision of service.

Therefore the Department is working to ensure that Victoria fulfils its requirements on competitive neutrality reporting for technological-based businesses against the enhanced principles as required under the National Reform Agenda.

(Q) DECLARATION OF MAJOR CONTRACTSThe Department has disclosed, in accordance with the requirements of Government policy and accompanying guidelines, all contracts greater than $10 million in value that it entered into during the year ended 30 June 2012. Details of contracts that have been disclosed in the Victorian Government contracts publishing system can be viewed on the internet at contracts.vic.gov.au

https://www.tenders.vic.gov.au/tenders/contract/view.do?id=17373&returnUrl=%252Fcontract%252Flist.do%253F%2524%257Brequest.queryString%257D






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APPENDIX 8 ATTESTATION FOR COMPLIANCE WITH THE MINISTERIAL DIRECTION 4.5.5.1–INSURANCE

The Freedom of Information Act 1982 allows the public a right of access to documents held by the Department. For the 12 months ending 30 June 2012, the Department received 50 applications. Of these requests, 14 were from Members of Parliament and the remainder were from the general public. Of the total requests received by the Department, the majority were acceded to, but one went to internal review with none progressing to the appeal stage.

Overall, the average processing time of requests for the past 12 months by the Department was 48 days. The number of days for processing requests by the Department:

Number of days Percentage of requests processed

45 Days 66.6%

45 to 60 Days 16.7%

61 to 90 Days 16.7%

MAKING A REQUEST

Access to documents may be obtained through written application to the Freedom of Information Manager, as detailed in s17 of the Freedom of Information Act 1982. In summary, the requirements for making a request are:

> it should be in writing

> it should identify as clearly as possible the documents being requested

> it should be accompanied by the appropriate application fee (the fee may be waived in certain circumstances)

Requests for documents in the possession of Department of State Development, Business and Innovation should be addressed to:

Manager, Freedom of Information and Privacy Department of State Development, Business and Innovation Level 31, 121 Exhibition Street Melbourne VIC 3000

Applications can also be lodged online at foi.vic.gov.au

Access charges may also apply once documents have been processed and a decision on access is made; for example, photocopying and search and retrieval charges.

Further information regarding Freedom of Information can be found at foi.vic.gov.au

APPENDIX 7 FREEDOM OF INFORMATION

I, Howard Ronaldson, Secretary, certify that the Department of State Development, Business and Innovation has complied with Ministerial Direction 4.5.5.1– Insurance

Howard Ronaldson Secretary Department of State Development, Business and Innovation 2 September 2013

APPENDIX 9 ATTESTATION FOR COMPLIANCE WITH THE AUSTRALIAN/NEW ZEALAND RISK MANAGEMENT STANDARD

I, Howard Ronaldson, Secretary, certify that the Department of State Development, Business and Innovation has risk management processes in place consistent with the Australian/New Zealand Risk Management Standard (AS/NZS ISO 31000:2009 or its successor) and an internal control system is in place that enables the executive to understand, manage and satisfactorily control risk exposures. The Risk and Audit Committee verifies this assurance and that the risk profile of the Department of State Development, Business and Innovation has been critically reviewed within the last 12 months.

Howard Ronaldson Secretary Department of State Development, Business and Innovation 2 September 2013

http://www.foi.vic.gov.au


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Reforms to VIPP were introduced on 1 January 2013 that reflect the Victorian Government response to the Victorian Competition and Efficiency Commission’s Final Report: Inquiry into a more competitive Victorian manufacturing industry. The Department, in collaboration with the Industry Capability Network (Victoria) Limited, presented to businesses and public sector bodies on how to implement the reforms over January to May 2013 in Melbourne and regional Victoria.

APPENDIX 11 COMPLIANCE WITH THE BUILDING ACT 1993

All Government departments and funded agencies are required to comply with the requirements of the Building Act 1993, the Building Code of Australia and statutory obligations set by Government.

The Building Act 1993 applies to construction, demolition, removal and refurbishment of capital projects,and the Building Code of Australia relates to standards set for building regulations.

APPENDIX 12 OFFICE-BASED ENVIRONMENTAL IMPACTS

The following information has been prepared in accordance with Financial Reporting Direction 24C (FRD 24C), of the Financial Management Act 1994, which requires information to be reported for sites with 10 or more FTE staff.

Summary Trend Table

Total 2012-13

Total 2011-12

% Change from 2011-12

ENERGY Units of energy (gas and electricity) use per unit of office space MJ/M2 207.32 212 -2.22

WATER Units of metered water consumed per unit of office space kL/M2 0.51 0.51 0%

WATER Units of metered water consumed per FTE staff kL/FTE 12.71 12.31 +3.25%

TRANSPORT Greenhouse gas emissions from operational vehicles per 1,000 km travelled

t CO2-e/ 1,000km 0.17 0.18 -6%

WASTE Units of waste produced per FTE staff kg/FTE 116.3 114.5 +2%

PAPER Units of copy paper used per FTE staff Reams/FTE 19.96 20.17 -1%

The Victorian Industry Participation Policy Act 2003 requires departments and public sector bodies to report on the implementation of the Victorian Industry Participation Policy (VIPP). Departments and public sector bodies are required to apply VIPP in all procurement activities valued at $3 million or more in metropolitan Melbourne and for state-wide projects, or $1 million or more for procurement activities in regional Victoria.

During 2012-13, the Department commenced three VIPP applicable procurements totalling $44.16 million. Of those projects, one was located in regional Victoria and two in metropolitan Melbourne.

The outcomes expected from the implementation of the VIPP to these projects where information was provided are as follows:

> an average 93 per cent local content commitment was made

> a total of 349 FTE jobs were committed, including the creation of nine new jobs and the retention of 340 existing jobs

> a total of six FTE positions for apprentices/trainees were committed, including the creation of three new apprenticeships/traineeships, and the retention of the remaining three existing apprenticeships/traineeships

The commitments to the Victorian economy in terms of skills and technology transfer include use of the latest building skills techniques and embedding new technology into building designs.

During 2012-13, the Department completed three VIPP applicable projects, collectively valued at about $200 million. The outcomes reported from the implementation of the VIPP where information was provided, were as follows:

> an average of 88.3 per cent local content outcome was recorded

> a total of 77 FTE positions were created

> 27 new apprenticeships/traineeships were created and 54 existing apprenticeships/traineeships retained

The benefits to the Victorian economy in terms of retention of skills from the completed projects included the use of local carpentry, plumbing (hydraulics and HVAC), electrical (lighting and power), stone paving and tiling, and rigging (glazing installation), joinery, lift mechanics, and roofing and installation.

APPENDIX 10 IMPLEMENTATION OF THE VICTORIAN INDUSTRY PARTICIPATION POLICY


04 APPENDICES

> Department offices in the Melbourne metropolitan area participated in Earth Hour 2013. The Department’s Facilities and Environmental Management team worked with the building managers at each of the sites to ensure that lighting, with the exception of essential security lighting, was turned off.

> Energy efficiency information for both the home and office was provided to staff through internal communications.

2013-14 Targets:

> Amend procurement policy to ensure only appliances with a minimum 3.5-star energy and water rating can be purchased for Departmental offices.

> Investigate implementing an automatic after- hour’s shutdown policy for Departmental computers to reduce standby power consumption.

Explanatory notes:

> The data reported represents the 12-month period from 1 April 2012 to 31 March 2013. In this period the Department was operating as the former Department of Business and Innovation and its environmental impacts were primarily office-based.

> Some adjustments have been made to the previous year to reflect departmental changes and to provide the most comparable data.

> Waste data was extrapolated from limited samples that are not statistically representative and should be read with caution.

ENERGY USE

Total 2012-13 Total 2011-12

Electricity Natural Gas Electricity Natural Gas

Total energy usage MJ 3,100,836 81, 824 3,896,562 0

Total greenhouse gas emissions associated with energy (offsets included) t CO2-e 1,154 5 1,450.39 0

Units of energy used per FTE staff MJ/FTE 5,065 133.70 5,599 0

Units of energy used per unit of office area MJ/M2 202 5.32 212 0

Percentage of FRD 24C sites represented % 100 25 100 100

Percentage of FRD 24C FTE staff % 100 3 100 100

Explanatory notes:

> The Department’s new office in Dandenong uses gas for air-conditioning and hot water. No gas was used by Department offices in the 2011-12 reporting year.

> The Department reduced its building stock during the period. Along with energy-saving initiatives, this led to a decrease in the energy used.

Actions undertaken during the year to reduce energy use:

> Purchased Australian-based carbon offsets equivalent to 25 per cent of the emissions associated with the Department’s energy use.

> Worked with Shared Services to review and improve the energy efficiency of the Department’s leased buildings. For example, the meeting room sensor lights and the automatic switch off of non-emergency lights were tested and fixed where necessary.


04 APPENDICES

WASTE PRODUCTION

Total 2012-13 Total 2011-12

Units of recycling disposed of by destination kg 47,954 52,452

Units of organic recycling disposed of by destination kg 4,937 5,792

Units of landfill disposed of by destination kg 11,484 11,425

Total units of waste disposed of by destination kg 64,375 69,669

Units of recycling per FTE staff kg/FTE 86.6 86.2

Units of organic recycling per FTE staff kg/FTE 8.9 9.5

Units of landfill per FTE staff kg/FTE 20.8 18.8

Total units of waste disposed of per FTE staff by destination kg/FTE 116.3 114.5

Recycling rate % 82 84

Greenhouse gas emissions associated with waste disposal-based on weighted average of all audits t CO2-e 14 14

Percentage of all sites reported % 25 20

Percentage of all FTE staff reported % 89 82

Explanatory notes:

> The above data is derived from four waste audits, conducted by an external auditor over a five-day period at 121 Exhibition Street, Melbourne.

> Conducting four waste audits at 121 Exhibition Street goes beyond the requirements of FRD24C. However, extracting annual data from these limited samples is still not statistically representative and should be read with caution.

> There is not a strong correlation between waste consumption and the number of FTE at the 121 Exhibition Street office at the time of an audit.

> The data presented above excludes recycled items such as toner cartridges and e-waste collected by Green Collect and Cart Collect.

Actions undertaken during the year to reduce waste:

> An awareness campaign was implemented during National Recycling Week 2012 which sort to increase recycling rates of items such as toner cartridges and e-waste using Cart Collect and Green Collect. In addition, posters and internal articles were prepared to raise awareness of ‘what waste goes where’ and ‘what happens to the waste when it is recycled.’

> In the lead-up to the Christmas holiday period, the Department held a joint event with the Department of Justice entitled Swap Share Save. The aim of the event was to raise awareness of how goods around the office can be upcycled. Staff purchased upcycled gifts from Green Collect, Oxfam and Dear Gladys. Staff also brought in goods to exchange and donated work attire to Fitted for Work, a non-profit organisation that helps disadvantaged women re-enter the workforce.

> An environmental assessment of the Department’s five largest offices was conducted. The purpose of the assessment was to identify opportunities for improvement in the areas of energy, water, waste and transport. A key action resulting from the assessment was to ensure all offices have the facilities to recycle their compost, paper, toners, e-waste and other general recyclable items such as plastics, glass, CDs and batteries.

> A stationery bank was set up to store and redistribute old stationery items. Those that could not be reused were donated to Green Collect to upcycle and recycle.

> All Department staff were provided with a paper and landfill washable bin for their desks to assist in the correct sorting of waste. Department staff members empty their waste into the larger bins provided in the office. An awareness campaign was run earlier in the year to promote the correct use of the bins.


04 APPENDICES

> Internal articles were published detailing the number of reams used by the Department last year, and the impact that paper use has on the environment.

> Paper purchasers were asked to brainstorm ideas with their teams to suggest how further reductions might be made.

> A ‘paper tower’ poster campaign was run. Posters were placed in all utility rooms comparing the stack of reams purchased by the Department last year to notable skyscrapers across the world.

> Used paper was made into notepads for staff.

> Staff members were provided with information on how to use the newly installed Microsoft Office 2010 package to decrease the need for printing.

2013-14 Targets:

> four waste audits to be conducted by an external auditor

> visit new Department offices and identify any waste issues. Roll out a Department waste program in all new offices

> upcycle and recycle former Department materials that can no longer be used

> donate all business phones to the Melbourne Zoo’s ‘They’re Calling on You’ program

> implement a waste campaign to increase the Department’s recycling rate

PAPER USE

Total 2012-13 Total 2011-12

Total units of paper used Reams 12,219 14,305

Units of paper used per FTE staff Reams/FTE 19.96 20.17

Percentage 75-100% recycled content copy paper purchased % 90.69 91.33



Percentage of FRD24C sites reported % 100 100

Percentage of all FTE staff from FRD24C sites reported % 100 100

Explanatory notes:

> The Department’s procurement policy prescribes that only white Australian-made A4 paper with a minimum of 80 per cent recycled content is to be purchased by the Department. Exempt from this policy is the purchase of Nallawilli Copy Paper by the Indigenous Economic Development for Small Business team. This exemption accords with schedule 2 of the Victorian State Purchasing Contract supporting purchases from indigenous enterprises that are certified as members of Supply Nation.

> Some carbon neutral copy paper was purchased in 2012-13. This paper contains no recycled content and therefore reduced the recycled paper purchased by the Department. In line with Departmental policy, Corporate Express and staff responsible for stationery orders have been informed of the difference and reminded to purchase only 80 per cent recycled content paper. This should return the recycling result to more than 90 per cent.


04 APPENDICES

2013-14 Targets:

> increase recycled content paper purchasing by procuring a minimum 80 per cent recycled content white A4 and A3 paper

> all new Department site printers to be set to automatic black and white, and duplex printing

> increase the use of online forms

> implement a paper reduction campaign

WATER CONSUMPTION

Total 2012-13 Total 2011-12

Units of metered water consumed per unit of office area kL/M2 0.51 0.51

Units of metered water consumed per FTE staff kL/FTE 12.71 12.31

Total units of metered water consumed kL 7,786 8,405

Percentage of all sites reported % 100 80

Percentage of all FTE staff reported % 100 98

Explanatory notes:

> Data was not available for all FRD24C sites and all periods. The 2011-12 data for the Department’s former office at 55 Collins Street has been removed as no water data was provided for this office during the reporting period. Water data for the Department’s new office in Dandenong was not available for the months of March and July 2013, therefore an average for these two months has been used.

> A majority of the Department’s water usage is not separately metered. Water usage at those sites without separate meters is apportioned as per the square metre of building occupancy.

> The largest factor influencing water consumption at 121 Exhibition Street, the office with the highest number of Department staff, is how consistently the building’s blackwater treatment plant operates. When functioning, the recycled water is used to flush the toilets, reducing the amount of potable water used.

> Increased water usage per FTE more reflects a reduction in the number of staff. There is not a linear relationship between total water usage of a site and staff numbers.

Actions undertaken during the year to reduce water use:

> explored water-saving initiatives with the shared services provider who manages the Department’s tenancies

> provided staff with information on water-saving tips and government incentives for the home and office as part of Water Week 2012

2013-14 Targets:

> amend procurement policy to ensure that only appliances with a minimum 3.5-star energy and water rating can be purchased for Departmental offices

> investigate water-saving opportunities at newly acquired Department sites

> continue to work with the Shared Services Provider to upgrade leased sites so that the offices are more water-efficient


04 APPENDICES

TRANSPORTATION

DSDBI operational fleet

2012-13 2011-12

4 Cylinder (Inc Hybrid)

6 Cylinder (Lpg And

ULP) 4 Cylinder 6 Cylinder

Total energy consumption by vehicles (MJ) 743,180 120,443 648,718 377,931

Total vehicle travel associated with entity operations (km) 291,446 34,375 238,907 105,329

Total greenhouse gas emissions from vehicle fleet (t CO2-e) 54 8 47 25

Greenhouse gas emissions from vehicle fleet per 1,000 km travelled (t CO2-e/1,000 km) 0.18 0.23 0.20 0.24

DSDBI use of State Government vehicle pool

2012-13 2011-12

Total energy consumption by vehicles (MJ) 525,186 528,153

Total vehicle travel associated with entity operations (km) 247,556 240,928

Total greenhouse gas emissions from vehicle fleet (t CO2-e) 36 36

Greenhouse gas emissions from vehicle fleet per 1,000 km travelled (t CO2-e/1,000 km)

0.14 0.15

AIR TRAVEL

2012-13 2011-12

Total distance travelled by aeroplane (km) 2,681,100 1,686,910

STAFF TRAVEL

2011-12 2010-11

% Locality % % Locality %

Percentage of staff regularly (more than 75 per cent of work attendance days) using public transport, cycling or walking, or carpooling to and from work or working from home by locality type

88 Metro

CBD

Regional

Overseas offices

Interstate

81

11

7

0

1

88 Metro

CBD

Regional

Overseas offices

Interstate

88

2

9

1

0

Explanatory notes:

> Staff use of Department fleet vehicles and Victorian Government pool vehicles has been separated as a different methodology has been used to calculate the environmental impact of each vehicle pool.

> The amount of kilometres travelled by aeroplane by Department staff increased last year. This is due to the four Super Trade Missions conducted during 2012-13. The missions are central to

the Victorian Government’s increased focus on growing the State’s exports and the State’s long-term international engagement activities. They aim to connect Victorian businesses with opportunities in global markets through a sustained, large-scale and targeted, trade and investment program.


04 APPENDICES

Action taken during the year to reduce emissions related to travel:

> purchased 279 tonnes of carbon offsets equivalent to the greenhouse gases produced from the Department’s 2011-12 international air travel

> for the past three years the Department has only purchased Australian hybrid cars for its operational fleet. Generally, hybrids emit significantly less greenhouse gases than a six cylinder car

> promoted active transport with the Department’s Bicycle User Group and Corporate Health Group. This included a Ride to Work day breakfast event

2013-14 Targets:

> continue to promote active transport and the use of public transport through events such as ‘Ride to Work Day’

> purchase 530 tonnes of carbon offsets equivalent to 2012-13 international air travel

> upgrade video-conferencing facilities to reduce travel between offices

PROCUREMENT

Actions undertaken during the year to reduce environmental impact of procurement:

> The Department maintained a 40.93 per cent level of environmentally friendly or recycled content stationery purchasing throughout 2012-13.

2013-14 Targets:

> provide additional guidance to staff on sustainability considerations when procuring goods and services

> further increase recycled content stationery purchases to 43 per cent

GREENHOUSE GAS EMISSIONS

Total 2012-13 Total 2011-12

Total greenhouse gas emissions associated with energy use (excluding offsets) t CO2-e 870 1087

Carbon offsets Tonnes 290 362.6

Total greenhouse gas emissions associated with vehicle fleet t CO2-e 98 108

Total greenhouse gas emissions associated with air travel t CO2-e 653 436

Greenhouse gas emissions associated with international air travel 530 279

Total greenhouse gas emissions associated with waste disposal t CO2-e 14 14

Total greenhouse emissions associated with Departmental operations (excluding emissions counted by the purchase of carbon offsets) t CO2-e 1,635 1645

Greenhouse gas emissions offsets purchased t CO2-e 569 1,125

Explanatory notes:

> The Department purchased 279 tonnes of carbon offsets equivalent to its 2011-12 international air travel emissions.

> The Department also purchased 290 tonnes of carbon offsets equivalent to about two per cent of its 2012-13 energy emissions. This approximate includes current known emissions and estimated emissions based on the Dandenong office.


04 APPENDICES

FIVE-YEAR FINANCIAL SUMMARY

2013 2012 2011 2010 2009

$’000 $’000 $’000 $’000 $’000

Revenue from Government 521,627 523,481 1,279,454 2,035,040 1,667,553

Total income from transactions 620,892 557,513 1,383,093 2,119,412 1,757,990

Total expenses from transactions (606,088) (574,109) (1,389,807) (2,086,992) (1,720,296)

Net result from transactions 14,804 (16,596) (6,714) 32,420 37,694

Net result for the period 11,010 (24,315) (7,557) 24,816 (654)

Net cashflow from operating activities 30,692 (14,166) (33,911) 20,061 (21,751)

Total assets 815,139 682,247 558,578 805,195 759,952

Total liabilities 84,749 71,224 69,027 152,082 142,248

Financial Performance

The Department’s net result from transactions in 2013 was a surplus of $14.8 million compared with a defict of $16.6 million in 2012. The surplus in 2013 is largey due to timing differences relating to trust income received in the year but the associated expenditure is planned for the following year.

Total income from transactions increased by $63.4 million from the prior year as a result of additional sales for the Kew Residential Services Redevelopment.

Total expenses from transactions increased by $32 million from the prior year as a result of cost of sales for the Kew Residential Services Redevelopment, partly offset by a decrease in grant payments reflecting the completion of programs.

Total assets increased by $132.9 million mainly due to expenditure on the Melbourne Markets development at Epping ($107.7 million) and increase in cash and deposits ($28.2 million) held by trust accounts.

Total liabilities increased by $13.5 million mainly due to cash deposits held on behalf of Government clients for project works and customers’ deposits held for the purchase of apartments for Parkville Gardens.

APPENDIX 13 FINANCIAL REVIEW OF OPERATIONS AND FINANCIAL CONDITIONS


04 APPENDICES

APPENDIX 14 GRANTS AND RELATED ASSISTANCE

As in previous years, the Department has provided assistance to companies and organisations. Financial assistance provided in 2012-13 was as follows:

INVESTMENT AND INDUSTRY-RELATED GRANTS

The Department’s investment attraction activities include facilitative and financial assistance. In 2012-13, financial assistance of $73.8 million was paid to the organisations listed below (details of individual investment grant payments have not been disclosed, as they are deemed commercial-in-confidence):

AEGIS SERVICES AUSTRALIA PTY LTD

AEROSPACE AUSTRALIA LTD

ALCOA OF AUSTRALIA LIMITED

BAE SYSTEMS AUSTRALIA DEFENCE PTY LTD

BEGA CHEESE LTD

BIOTA HOLDINGS LTD

CABLEX PTY LTD

COTTON ON CLOTHING PTY LTD

CSL LIMITED

DEPARTMENT OF INDUSTRY, INNOVATION, SCIENCE, RESEARCH AND TERTIARY EDUCATION

DEPARTMENT OF PRIMARY INDUSTRIES

FILM VICTORIA

FMP GROUP (AUSTRALIA) PTY LTD

FORD MOTOR COMPANY OF AUSTRALIA LTD

HELLA AUSTRALIA PTY LTD

IBM AUSTRALIA LIMITED

INTERACTIVE PTY LIMITED

KRAFT FOODS AUSTRALIA PTY LTD

MARAND PRECISION ENGINEERING PTY LTD

MAXITRANS AUSTRALIA PTY LTD

MECRUS PTY LTD

NISSAN CASTING AUSTRALIA PTY LTD

PAPER AUSTRALIA PTY LTD

PARWAN VALLEY MUSHROOMS PTY LTD

QENOS PTY LTD

SAIC PTY LTD

SHINE (AUST) PTY LTD

SIMPLOT AUSTRALIA PTY LTD

TOYOTA MOTOR CORPORATION AUSTRALIA LTD

UNIVERSITY OF MELBOURNE

WESTPAC BANKING CORPORATION


04 APPENDICES

BIOTECHNOLOGY

AUSTIN HEALTH $80,000

AUTOTEST PRODUCTS PTY LTD $8,000

AXXIN PTY LTD $15,198

BIO 21 AUSTRALIA LIMITED $528,675

BIO NOVA INTERNATIONAL PTY LTD $18,000

BIODIEM LTD $5,000

BIOMEDTECH AUSTRALIA PTY LTD $15,125

BIOMELBOURNE NETWORK INC $51,461

BLAMEY & SAUNDERS HEARING PTY LTD $5,500

BORON MOLECULAR PTY LIMITED $2,499

BROADVECTOR LIMITED $6,000

BULLSEYE TECHNOLOGY PTY LTD $2,500

CANCER THERAPEUTICS CRC PTY LTD $223,900

CAPSTONE PARTNERS PTY LTD $5,500

CELL CARE AUSTRALIA PTY LTD $2,500

CIRCA GROUP PTY LTD $7,500

CIRCADIAN TECHNOLOGIES LIMITED $8,000

COGSTATE LTD $2,500

COUNSELLINK PTY LTD $13,000

DENTAL HEALTH SERVICES VICTORIA $100,000

EASTERN HEALTH $80,000

EIKONIC R & D PTY LTD $5,000

ELISAKIT.COM PTY LTD $2,500

ELK ORTHOBIOLOGICS LIMITED $2,500

ENDOGENE LIMITED $4,292

FAIRMONT MEDICAL PRODUCTS PTY LTD $2,500

FIBROTECH THERAPEUTICS PTY LTD $7,500

GENERA BIOSYSTEMS LIMITED $3,000

GI THERAPIES PTY LTD $2,500

GLOBAL KINETICS CORPORATION PTY LTD $3,000

HARD TECHNOLOGIES PTY LTD $2,500

HATCHTECH PTY LIMITED $3,000

HEXIMA LIMITED $5,261

HORIZON21 LIMITED $2,500

HORSHAM COLOUR $2,500

IDT AUSTRALIA LIMITED $82,500

IMMURON LIMITED $2,500

INTELLIMEDICAL TECHNOLOGIES PTY LTD $7,500

INTERPATH PTY LTD $9,091

LARGOS SERVICES PTY LTD $2,491

MEDICAL DEVELOPMENTS INTERNATIONAL LIMITED $17,362

MEDICINES DEVELOPMENT LIMITED $2,500

METABOLIC PHARMACEUTICALS PTY LTD $5,000

INNOVATION AND TECHNOLOGY GRANTS

Grant payments totalling $50.8 million made to organisations under the Department’s Innovation and Technology programs are listed below.

AWARENESS

AUSTRALIAN ACADEMY OF TECHNOLOGICAL SCIENCES AND ENGINEERING $20,000

AUSTRALIAN SCIENCE MEDIA CENTRE INC $15,200

CSIRO $35,000

ROYAL INSTITUTION OF AUSTRALIA INC, THE $70,000

TOTAL $140,200

BIOMEDICAL RESEARCH – OPERATIONAL INFRASTRUCTURE SUPPORT PROGRAM

BAKER IDI HEART AND DIABETES INSTITUTE HOLDINGS LIMITED $3,509,604

BIONICS INSTITUTE OF AUSTRALIA $381,288

CENTRE FOR EYE RESEARCH AUSTRALIA LIMITED $970,000

FLOREY INSTITUTE OF NEUROSCIENCE AND MENTAL HEALTH, THE $2,281,432

LUDWIG INSTITUTE FOR CANCER RESEARCH LTD $1,390,304

MACFARLANE BURNET INSTITUTE FOR MEDICAL RESEARCH AND PUBLIC HEALTH LTD $3,577,636

MENTAL HEALTH RESEARCH INSTITUTE PTY LTD, THE $846,988

MONASH UNIVERSITY $1,274,832

MURDOCH CHILDRENS RESEARCH INSTITUTE $3,211,016

O’BRIEN INSTITUTE $299,696

PRINCE HENRY’S INSTITUTE OF MEDICAL RESEARCH $1,146,204

ST VINCENT’S INSTITUTE OF MEDICAL RESEARCH $1,621,952

WALTER AND ELIZA HALL INSTITUTE OF MEDICAL RESEARCH, THE $5,589,048

TOTAL $26,100,000

BIOTECHNOLOGY

ADALTA PTY LTD $10,500

ADP TECHNOLOGY PTY LTD $2,403

AFFINITY BIOSCIENCES PTY LTD $5,000

AGENIX LIMITED $5,000

AKAAL PHARMA PTY LTD $3,000

ALFRED HEALTH $160,000

AMBULANCE VICTORIA $100,000

ANATOMICS PTY LTD $10,500

ARRAYWARE PTY LTD $5,000

AUS BIO LIMITED $5,500

AUSBIOTECH LTD $61,040


04 APPENDICES

COLLABORATIVE NETWORKS FOR TECHNOLOGY TRANSFER

DAIRY INNOVATION AUSTRALIA LIMITED $200,000

TOTAL $200,000

CONNECTING VICTORIA

11X ENTERTAINMENT FASHION AND TECHNOLOGY GROUP PTY LTD $2,500

121CAST PTY LTD $12,769

1440 PRODUCTIONS PTY LTD $5,000

199NFORM PTY LTD $16,000

ACTIVE REACH PTY LTD $2,500

ADVANCE VISION TECHNOLOGY (AUST) PTY LTD $2,500

ADWEB PTY LTD $11,531

AFC GROUP PTY LTD $2,161

AGENT ORIENTED SOFTWARE PTY LTD $7,405

AGSMART PTY LTD $10,000

AIR-RADIATORS PTY LTD $51,440

AKCELIK & ASSOCIATES PTY LTD $2,834

ANTEVO PTY LTD $2,500

ARCITECTA PTY LTD $4,000

ATOMIC MEDIA PTY LTD $2,500

AUSTRALIAN INFORMATION INDUSTRY ASSOCIATION LIMITED $120,000

AUSTRALIAN INTERACTIVE MEDIA INDUSTRY ASSOCIATION INC $50,000

AVARA TECHNOLOGIES PTY LTD $5,000

BEAM COMMUNICATIONS PTY LTD $10,000

BESTRANE GROUP PTY LTD $2,500

BIBTECH PTY LTD $4,805

BIG PIPE MEDIA PTY LTD $2,500

BIONIC CORPORATION PTY LTD $2,500

BIZ CATALYST PTY LTD $5,000

BLUEDOG PRODUCTIONS (VIC) PTY LTD $5,000

BLUEFISH TECHNOLOGIES PTY LTD $6,480

BOGAN ENTERTAINMENT SOLUTIONS PTY LTD $10,500

BOX HILL INSTITUTE OF TAFE $5,000

BRAENDLER ENGINEERING PTY LTD $3,658

BRAWSOME PTY LTD $2,500

BROCCOL-E-GAMES PTY LTD $5,000

BULPADOK PTY LTD $3,684

BUSINESS INTELLIGENCE TECHNOLOGIES PTY LTD $2,500

CAPTURE PLAN PTY LTD $8,000

CARCLOUD PTY LTD $2,500

BIOTECHNOLOGY

MICRO-X PTY LTD $2,500

MINIFAB (AUST) PTY LTD $23,826

MOBILE HEALTH SOLUTIONS PTY LTD $5,000

MONASH UNIVERSITY $819,579

MRCF PTY LTD $2,500

MYOSTIN THERAPEUTICS PTY LTD $5,000

NEXVET BIOPHARMA PTY LTD $2,500

NUCLEUS NETWORK LIMITED $3,000

OPTHEA PTY LTD $5,500

OPTIMAL IVF PTY LTD $2,500

OPTOTECH PTY LTD $2,500

PENINSULA HEALTH $80,000

PETER MACCALLUM CANCER INSTITUTE $80,000

POLYACTIVA PTY LTD $3,000

POLYNOVO BIOMATERIALS PTY LIMITED $8,418

PRANA BIOTECHNOLOGY LTD $6,000

QUBIST MOLECULAR DESIGN PTY LTD $2,500

RAMSEY COOTE HEALTHCARE PTY LTD $13,050

RAPP AUSTRALIA PTY LTD $4,955

RAUTAKI SOLUTIONS PTY LTD $1,569

REALTEK TECHNOLOGIES PTY LTD $2,500

RHEOLOGY SOLUTIONS PTY LTD $5,335

ROYAL VICTORIAN EYE & EAR HOSPITAL $100,000

ROYAL WOMEN’S HOSPITAL $100,000

SEE-D4 PTY LTD $2,500

SGA SOLUTIONS PTY LTD $2,500

SMALL TECHNOLOGIES CLUSTER LTD $8,500

SOUTHERN HEALTH $200,000

SPINIFEX PHARMACEUTICALS PTY LTD $5,000

STARPHARMA PTY LTD $5,000

STATISTICAL REVELATIONS PTY LTD $5,500

SYNTHESIS RESEARCH PTY LTD $2,500

SYN|THESIS MED CHEM PTY LTD $2,500

SYPHARMA PTY LTD $5,500

TELEZON LIMITED $2,561

TS INNOVATIONS PTY LTD $3,000

TTCF PTY LTD $250,000

UNITYHEALTH PTY LTD $8,000

UNIVERSAL BIOSENSORS PTY LTD $2,500

TOTAL $3,513,592


04 APPENDICES

CONNECTING VICTORIA

EVENTARC PTY LTD $5,000

EVISION PTY LIMITED $9,000

EXTREME NETWORKS PTY LTD $2,500

FABRIC GROUP PTY LTD $5,000

FAIRBANKS ENVIRONMENTAL PTY LTD $2,500

FELSTEAD ENTERPRISES PTY LTD $2,500

FMEVOLUTION PTY LTD $2,357

FRUITION CONSULTING GROUP PTY LTD $2,500

GAZUNTI PTY LTD $2,500

GENERO MUSIC PTY LTD $10,000

GENIX VENTURES PTY LTD $20,000

GIGANTICALLY SMALL PTY LTD $2,500

GLOBAL SPEECH NETWORKS PTY LTD $2,500

GLOBAL XCHANGE PTY LTD $2,500

GOAL BUSINESS GROUP PTY LTD, THE $2,500

GORDON INSTITUTE OF TAFE $5,000

GOYA PTY LTD $8,000

GPSAT SYSTEMS AUSTRALIA PTY LTD $2,500

GRADIENT PTY LTD $2,500

GRAPPLE GUN GAMES PTY LTD $2,500

GREEN STRIPE SNAKE PTY LTD $2,500

HAMMERTIME MEDIA PTY LTD $4,556

HUMAN EDGE SOFTWARE CORPORATION PTY LTD $2,500

ICAREHEALTH PTY LTD $20,000

ICT123 PTY LTD $2,500

IDEAL LEAGUE PTY LTD $5,000

IMAGINATING PTY LTD $3,367

IMPROMPTU GAMES PTY LTD $2,199

INDUSTRY POWER PTY LTD $151,962

INFERENCE SOLUTIONS PTY LTD $8,000

INTELLIRAD SOLUTIONS PTY LTD $20,000

INTELLITRAC PTY LTD $2,500

JAIRUS PTY LTD $2,500

JR SYSTEMS PTY LTD $13,089

JX2 TECHNOLOGY PTY LTD $15,816

KAGOME FOODS AUSTRALIA PTY LTD $15,000

KAILO MEDICAL PTY LTD $5,000

KICKFOLIO PTY LTD $7,528

KINGFISHER INTERNATIONAL PTY LTD $14,500

KINGSTON CITY COUNCIL $14,075

KLICKTOCK PTY LTD $2,500

KLOUD SOLUTIONS PTY LTD $2,500

KUMOBIUS PTY LTD $8,300

CONNECTING VICTORIA

CASHTIVITY PTY LTD $7,500

CASTLEMAINE DISTRICT COMMUNITY HEALTH LIMITED $16,629

CELEMETRIX PTY LTD $2,500

CHECKBOX STUDIOS PTY LTD $2,500

CHESS WORLD (AUSTRALIA) PTY LTD $2,500

CHISHOLM INSTITUTE OF TECHNICAL AND FURTHER EDUCATION $5,000

CICADA.NET.AU PTY LTD $4,998

CINERGIX PTY LTD $4,000

CIVIL CONTRACTORS FEDERATION $18,000

CLARINOX TECHNOLOGIES PTY LTD $7,500

CLICKPOS PTY LTD $2,479

COMMSFORCE PTY LTD $2,390

COMMUNITY COLLEGE GIPPSLAND LTD $12,500

COMPLETE POST PRODUCTION CENTRE PTY LTD $2,500

CONVERGENT TECHNOLOGIES PTY LTD $2,500

CORNERSTONE SOLUTIONS PTY LTD $2,500

CPT GLOBAL LIMITED $6,500

CREPROT INTERNATIONAL PTY LTD $2,500

CULTURE AMP PTY LTD $4,621

CURRENT CIRCUS PTY LTD $8,402

CURRENT STUDIOS PTY LTD $2,500

CYARA SOLUTIONS PTY LTD $8,000

DEAKIN UNIVERSITY $17,794

DEEPCLOUD PTY LTD $2,500

DEFENCE COMMUNICATIONS INDUSTRY PTY LTD $4,000

DEMRUTH PTY LTD $2,500

DEMUM PTY LTD $2,459

DESURA PTY LTD $5,000

DESURANET PTY LTD $2,500

DIGITAL EDUCATION SERVICES PTY LTD $5,000

DYNAMIC STRATEGIES PTY LTD $10,000

E BALL GAMES PTY LTD $10,000

EAST GIPPSLAND INSTITUTE OF TAFE $25,448

EBLA CORPORATION PTY LTD $2,500

EDGE GROUP PTY LTD $4,000

ELEARNING INDUSTRY ASSOCIATION OF VICTORIA INC $20,000

EMERG SOLUTIONS PTY LTD $12,500

ENDGAME STUDIOS PTY LTD $4,476

ENITIATIVES.COM PTY LTD $18,000

ENVIRONMENTAL MONITORING SOLUTIONS PTY LTD $2,500

EQUEUE PTY LTD $5,487


04 APPENDICES

CONNECTING VICTORIA

PHM TECHNOLOGY PTY LTD $13,487

PIXEL TUCKER PTY LTD $5,000

PLAYFI PTY LTD $5,000

PORTABLE AUSTRALIA PTY LTD $10,500

POZIBLE PTY LTD $6,433

QMCODES PTY LTD $2,500

QUANTUM INFORMATION TECHNOLOGY PTY LTD $4,000

RECTIFIER TECHNOLOGIES PACIFIC PTY LTD $5,551

REED ELSEVIER AUSTRALIA PTY LTD $100,000

REVELATION SOFTWARE CONCEPTS PTY LTD $32,000

RMIT UNIVERSITY $1,005,000

ROME2RIO PTY LTD $7,966

RUBBER MUSIC PTY LTD $2,500

SEDCO COMMUNICATIONS PTY LTD $4,000

SELECTRONIC AUSTRALIA PTY LTD $8,000

SENATH PTY LTD $11,483

SENKO ADVANCED COMPONENTS (AUSTRALIA) PTY LTD $8,000

SENTIENT VISION SYSTEMS PTY LTD $8,000

SGR CORPORATION PTY LTD $10,000

SHINY PTY LTD $255,000

SHORT ATTENTION $2,500

SILVERSTRIPE AUSTRALIA PTY LTD $20,000

SISSIT PTY LTD $16,000

SKY SOFTWARE PTY LTD $5,272

SMART GUIDE PTY LTD $20,000

SOFTWARE ESCROW & COPYRIGHT AGENTS PTY LTD $2,500

SOUND LIBRARIAN PTY LTD $2,500

SOURCEDYNAMIX ASIA PACIFIC PTY LTD $2,500

SOUTHERN INNOVATION TRADING PTY LTD $5,000

SPEEDSHIELD TECHNOLOGIES PTY LTD $2,500

SPROCKET INVESTMENTS PTY LTD $2,017

STOPMOTIONPRO PTY LTD $11,115

STRAIGHT RIGHT PTY LTD $2,500

STRATICA INTERNATIONAL PTY LTD $2,500

STREAMLINE SOLUTIONS PTY LIMITED $6,500

SWINBURNE UNIVERSITY OF TECHNOLOGY $26,605

SYNETEK SYSTEMS PTY LTD $12,142

TARAZZ PTY LTD $4,000

TEAMSQUARE PTY LTD $2,500

TELEMATIC COMMUNICATIONS PTY LTD $2,500

TESTPILOT CI PTY LTD $1,727

CONNECTING VICTORIA

LA TROBE UNIVERSITY $6,250

LANGUAGE PARTNER PTY LTD $3,636

LARK VENTURES PTY LTD $2,500

LESSONS FOR LIFE INTERNATIONAL PTY LTD $19,146

LEXIM PTY LTD $2,500

LINGO SYSTEMS PTY LTD $9,672

LIST FACTORY PTY LTD $2,500

LIVESTOCK SALEYARDS ASSOCIATION OF VICTORIA INC $15,000

LOCK BOX PTY LTD $2,500

LOREM IPSUM PTY LTD $5,271

LOVESHACK ENTERTAINMENT PTY LTD $2,500

LYNX IT PTY LTD $2,500

MAGIAN DESIGN STUDIO PTY LTD $8,000

MANY MONKEYS DEVELOPMENT PTY LTD $2,500

MCOMMS TV PTY LTD $2,500

MEDADVISOR PTY LTD $2,500

MEDIA EQUATION PTY LTD $5,000

MEDIA SAINTS PTY LTD $5,000

MEDIAPROXY PTY LTD $25,228

MIGENIUS PTY LTD $17,842

MILLIPEDE CREATIVE DEVELOPMENT PTY LTD $2,500

MIND ATLAS PTY LTD $5,000

MISSION HQ PTY LTD $8,000

MMGN.COM PTY LTD $2,206

MORALETHICA PTY LTD $2,500

MY LIFESTYLE REMOTE PTY LTD $2,500

MYGUESTLIST PTY LTD $10,000

MYRECRUITONLINE PTY LTD $8,000

NIGHTFLY SERVICES PTY LTD $2,500

NOVATTI PTY LTD $18,500

NSYNERGY PTY LTD $2,500

ONLINE CIRCLE PTY LTD, THE $2,500

ONLINE ROSTERING PTY LTD $2,500

OPTIMISING PTY LTD $2,500


OUTWARE SYSTEMS PTY LTD $4,000

PACE MARKETING PTY LTD $2,500

PACSOFT PTY LTD $3,735

PAPERCUT SOFTWARE INTERNATIONAL PTY LTD $5,653

PARCUS GROUP PTY LTD $2,500

PEAZIE SOCIAL MEDIA (GROUP) PTY LTD $2,273

PEPPERSTONE FINANCIAL PTY LTD $2,500


04 APPENDICES

SMALL TECH INDUSTRY UPTAKE PROGRAM

ALBION SPORTS PTY LTD $20,925

ANATOMICS PTY LTD $35,044

AQUA DIAGNOSTIC PTY LTD $45,455

AUSTRALIAN SYNCHROTRON COMPANY LTD $27,273

CERBERUS PTY LTD $45,455

DORSAVI PTY LTD $50,000

FALLSAFE TECHNOLOGY PTY LTD $25,000

FUTURE LIVESTOCK PTY LTD $10,000

HARMONIX INSTRUMENTS PTY LTD $25,000

IDT AUSTRALIA LIMITED $25,000

INSULPAK PTY LTD $7,500

ISLERO INVESTMENTS PTY LTD $50,000


MTECH SYSTEMS PTY LTD $22,727

NEURISION PTY LTD $45,455

QENOS PTY LTD $50,000

SAGAMORE INDUSTRIES PTY LTD $25,000

SEAGULL TECHNOLOGY PTY LTD $50,000

SIENNA CANCER DIAGNOSTICS LIMITED $45,082

SOUTHERN INNOVATION TRADING PTY LTD $49,200

VR TEK GLOBAL PTY LTD $9,091

WHEEZYTECH PTY LTD $45,754

TOTAL $766,459

SUPPORT FUNDING

VICTORIAN ENDOWMENT FOR SCIENCE, KNOWLEDGE & INNOVATION $1,328,000

TOTAL $1,328,000

VICTORIA FELLOWSHIP 2012

GEE WILLIAM, DR $17,985

TOTAL $17,985

VICTORIA PRIZE 2012

DELETIC, ANA $50,000

SPEED, TERENCE $50,000

TOTAL $100,000

VICTORIAN GOVERNMENT EXPO CENTRE

THE ROYAL AGRICULTURAL SOCIETY OF VICTORIA LIMITED $170,000

TOTAL $170,000

CONNECTING VICTORIA

THE AUSTRALIAN INDUSTRY GROUP $30,000

THE CONVERSATION MEDIA GROUP LIMITED $650,000

THE VOXEL AGENTS PTY LTD $5,000

THREE SPROCKETS PTY LTD $2,500

TIN MAN GAMES PTY LTD $9,325

TORUS GAMES PTY LTD $11,500

TOTAL TEL INTERNATIONAL PTY LTD $4,000

TRAINSEM PTY LTD $2,500

TRICKSTAR GAMES PTY LTD $2,500

TWIITCH PTY LTD $7,500

UMBRELLA ENTERTAINMENT PTY LTD $5,000

UNITYHEALTH PTY LTD $12,000

UNIVERSITY OF MELBOURNE $21,357

UNIVERSITY OF TECHNOLOGY SYDNEY $10,000

VALLEYARM DIGITAL PTY LTD $3,072

VASTPARK PTY LTD $7,176

VICTORIA UNIVERSITY $21,250

VICTORIAN INFORMATION TECHNOLOGY TEACHERS ASSOCIATION INC, THE $110,000

VUMERO PTY LTD $4,000

WICKED WITCH SOFTWARE PTY LTD $5,000

WORKING THREE PTY LTD $2,500

XDT PTY LTD $16,000

XELON ENTERTAINMENT PTY LTD $5,000

XENON SYSTEMS PTY LTD $4,035

YTEK PTY LTD $7,052

ZINGLER & ASSOCIATES PTY LTD $2,074

ZIPTALES PTY LTD $8,000

ZOOMORPHIX SYSTEMS PTY LTD $8,000

ZOYU SOLUTION PTY LTD $2,601

TOTAL $3,976,850

CRC SUPPORT PROGRAM

AUSTRALIAN PROSTATE CANCER RESEARCH $38,000


TOTAL $46,000

MOVIEXPERIENCE

AUSTRALIAN CENTRE FOR THE MOVING IMAGE $24,000

TOTAL $24,000


04 APPENDICES

VICTORIAN INNOVATION STRATEGY

SCALE INVESTORS $150,000

SEE-D4 PTY LTD $187,500

SIGNAL EFFECTS PTY LTD $50,000

SMALL TECHNOLOGIES CLUSTER LTD $95,568

SONG ROOM INC, THE $29,576

SPRINGVALE COMMUNITY AID AND ADVICE BUREAU INC $18,154

ST VINCENT’S HOSPITAL (MELBOURNE) LIMITED $100,000

STARPHARMA PTY LTD $130,900


TRUST FOR NATURE (VICTORIA) $3,300

UNITING CARE – MORELAND HALL $22,196

UNIVERSITY OF BALLARAT $313,750

UNIVERSITY OF MELBOURNE $1,884,741

VCAMM LIMITED $3,193,000

VICTORIA STATE EMERGENCY SERVICE AUTHORITY $82,500

TOTAL $14,446,322

TRADE AND INDUSTRY DEVELOPMENT GRANTS

The Department provided assistance through a number of programs to companies and organisations to support manufacturing, enterprise improvement, export growth, business development, promotional activities, workforce and skills activities, economic and community development in regional Victoria, and targeted support to small businesses in Victoria. Grant payments totalling $26.9 million made to organisations under the Department’s Trade and Industry Development programs are listed below.

AGENDA FOR NEW MANUFACTURING

AUSTRALIAN FURNITURE ASSOCIATION INC $7,500

VCAMM LIMITED $1,250,000

TOTAL $1,257,500

BUSINESS DEVELOPMENT PROGRAM

HINDMARSH SHIRE COUNCIL $75,000

MELBOURNE FOOD AND WINE EVENTS LTD $150,000

TOTAL $225,000

VICTORIAN INNOVATION STRATEGY

ADALTA PTY LTD $52,458

ALFRED HEALTH $15,000

ANZA TECHNOLOGY NETWORK LIMITED $120,000

AUSTRALIAN CENTRE FOR THE MOVING IMAGE $80,000

AUTOCRC LTD $95,000

BENDIGO SENIOR SECONDARY COLLEGE $251,912

CAREERLOUNGE PTY LTD $30,000

CENTRE FOR EYE RESEARCH AUSTRALIA LIMITED $55,000

COMPOSITES AUSTRALIA INC $200,000

COUNCIL OF TEXTILES AND FASHION INDUSTRIES OF AUSTRALIA LIMITED $200,000

CSIRO $702,000


DEPARTMENT OF SUSTAINABILITY AND ENVIRONMENT $225,000

DISABILITY IN-SERVICE TRAINING SUPPORT SERVICE INC $311,250

DONWOOD COMMUNITY AGED CARE SERVICES INC $438,694

ELLECA MEDICAL PTY LTD $50,000

EUREKA ! AGRESEARCH (VIC) PTY LTD $100,000

FLOREY INSTITUTE OF NEUROSCIENCE AND MENTAL HEALTH, THE $419,498

GHD PTY LTD $190,000

HEALTHLINX LIMITED $50,000

ID RESEARCH PTY LTD $120,000

JOHN MONASH SCIENCE SCHOOL $213,750

KONNECTIVE PTY LTD $60,000

LIFE SAVING VICTORIA LIMITED $157,500

LMHA NETWORK LTD $380,000

MEDICINES DEVELOPMENT LIMITED $150,000

MELBOURNE HEALTH $89,600


MONASH UNIVERSITY $1,397,280

MORELAND CITY COUNCIL $34,800

MRCF PTY LTD $400,000

NATIONAL SAFETY AGENCY LTD $400,050

NEOPEC PTY LTD $130,000

NUFARM AUSTRALIA LIMITED $100,000

POLYMERS CRC LTD $280,345

PRECEDENCE HEALTH CARE PTY LTD $100,000

PYKSIS PTY LTD $170,000

ROYAL DISTRICT NURSING SERVICE LIMITED $90,000


04 APPENDICES

GROW YOUR BUSINESS

ADOPT A VINE PTY LTD $7,500

AIRLINX HEATING AND COOLING SUPPLY PTY LTD $7,500

ARROW LASER AUSTRALIA PTY LTD $7,500

AUSMED EDUCATION PTY LTD $7,500

AUSTRALIAN VALVE & ENGINEERING PTY LTD $5,250

AVWELD AUSTRALASIA PTY LTD $11,500

AXIOM BUSINESS SYSTEMS PTY LTD $7,500

B & B BASIL PTY LTD $5,588

BARON FORGE CONTRACTORS (VIC) PTY LTD $4,000

BATTUNGA ORCHARDS $11,500

BAUM CYCLES PTY LTD $11,250

BOOMAROO NURSERIES & WHOLESALE SUPPLIES PTY LTD $11,500

CEM INTERNATIONAL PTY LTD $11,250

CENTRAL VICTORIAN EXPORTERS NETWORK INC $10,500

CITY OF DAREBIN $15,000

CITY OF GREATER BENDIGO $15,000

CITY OF MARIBYRNONG $15,000

COMPLETE WORKWEAR SERVICES PTY LTD $2,250

DAVILIA PTY LTD $7,773

EARTH SYSTEMS CONSULTING PTY LTD $4,000

ELECTRODRIVE PTY LTD $11,500

FINDEX AUSTRALIA PTY LTD $11,500

FJ LENNE PTY LTD $11,438

FLAVOUR MAKERS PTY LTD $7,500

FRANKLING CUSTOM FEEDS PTY LTD $7,000

G & E FANKHAUSER PTY LTD $10,000

GAB & NICK DELLIOS PTY LTD $4,000

GENERAL LASER PTY LTD $5,900

GOLDEN GRAIN FLOUR MILL PTY LTD $9,688

GSHB VISION PTY LTD $7,500

HUME CITY COUNCIL $15,000

IBIS INFORMATION SYSTEMS PTY LTD $11,500

INGENEUS PTY LTD $11,500

JOHN B MASSON & ASSOCIATES PTY LTD $4,000

KOOKA’S COUNTRY COOKIES PTY LTD $10,200

LINUS INFORMATION SECURITY SOLUTIONS PTY LTD $4,375

MANSFIELD SHIRE COUNCIL $15,000

MARKFORCE INTERNATIONAL PTY LTD $7,000

MEAT TENDER PTY LTD $7,500

MELBOURNE’S NORTHERN ECONOMIC WEDGE INC $15,000

MOONEE VALLEY CITY COUNCIL $7,500

COMMUNITY REGIONAL INDUSTRY SKILLS PROGRAM

FONTERRA BRANDS (AUSTRALIA) PTY LTD $40,000

LONGWARRY FOOD PARK PTY LTD $30,000

MILBURN LAKE PTY LTD $20,000

MOIRA MAC’S POULTRY & FINE FOODS PTY LTD $37,500

ROOFING CENTRE ALBURY/WODONGA PTY LTD $17,500

VITASOY AUSTRALIA PRODUCTS PTY LTD $60,000

TOTAL $205,000

COMPETITIVE BUSINESS FUND

ALTUS TRAFFIC PTY LTD $30,944

ANCA PTY LTD $50,000

AUSTRALIAN LAMB COMPANY PTY LTD $125,000

BILLMAN’S FOUNDRY PTY LTD $23,625

CONTINENTAL PTY LTD $47,373

CORVINA QUALITY FOODS PTY LTD $60,000

ELECTROMOLD AUSTRALIA PTY LTD $25,000

EMEIS COSMETICS PTY LTD $35,000

FLAVORITE HYDROPONIC TOMATOES PTY LTD $50,000

ICON PLASTICS PTY LTD $75,000

J C SMALE MANUFACTURING PTY LTD $23,222

KEECH CASTINGS AUSTRALIA PTY LIMITED $175,000


MARAND PRECISION ENGINEERING PTY LTD $100,000

MTM PTY LTD $97,000

OMNIBLEND PTY LTD $90,000

STAR MAID INTERNATIONAL PTY LTD $150,000

UNIVERSAL LOGIC PTY LTD $35,000

TOTAL $1,442,164

ENGAGING INDIA

SAVE YOUR LEGS PTY LTD $50,000


TOTAL $1,628,000

EVENTS AND SPONSORSHIPS

MELBOURNE FASHION FESTIVAL LIMITED $1,595,433

TOTAL $1,595,433

GEELONG MANUFACTURING COUNCIL

GMIC LTD $200,000

TOTAL $200,000


04 APPENDICES

HAMER SCHOLARSHIP PROGRAM

GRAHAM, TOBY $10,000

GRIMA, JOHN PAUL $10,000

KONG, CHRISTOPHER $10,000

LARKIN, STIRLING $10,000

LIPSHUT, JENNA $10,000

MAHER, JACK $10,000

MCCALLUM, WILLIAM $10,000

MICHENER, GENE $10,000

ONG, DANIEL $10,000

SAVAGE, ROBERT $10,000

SLEVISON, ALICE $10,000

SOBEY, DAVID $10,000

TAN, JEK $10,000

THYER, MICHAEL $5,000

TRAN, CHUAN $10,000

UREN, IAIN $10,000

WARD, JACQUELINE $10,000

WILSON, PENELOPE $10,000

ZHENG, MOYI $10,000

TOTAL $265,000

INDIGENOUS JOBSEEKERS PROGRAM

AUSTRALIAN RETAILERS ASSOCIATION $30,000

A.R.T. EMPLOYMENT PTY LTD $88,000

COLLINGWOOD FOOTBALL CLUB LIMITED $105,000

DEPARTMENT OF JUSTICE $400,000

ESSENDON FOOTBALL CLUB $130,000

GROUP TRAINING ASSOCIATION OF VICTORIA INC $72,800

KAIELA INSTITUTE LIMITED $138,750

LINK EMPLOYMENT & TRAINING INC $207,960

MADEC AUSTRALIA $14,957

MATRIX ON BOARD PTY LIMITED $15,400

MILDURA RURAL CITY COUNCIL $105,000

RUMBALARA FOOTBALL NETBALL CLUB INC $295,800

ST KILDA YOUTH SERVICE INC $101,475

SWAN HILL RURAL CITY COUNCIL $179,620

TIGERS IN COMMUNITY FOUNDATION LIMITED $40,000

VICTORIAN ABORIGINAL COMMUNITY SERVICES ASSOCIATION LIMITED $230,488

VICTORIAN RUGBY UNION INC $137,750

WODONGA CITY COUNCIL $102,000

WORN GUNDIDJ ABORIGINAL CO-OPERATIVE LTD $208,480

TOTAL $2,603,480

GROW YOUR BUSINESS

MUM’S CHIPS COMPANY PTY LTD $4,000

MURRAWEE FARMS (AUST) PTY LTD $7,500

N & C HARGREAVES PTY LTD $7,500

NETEC INDUSTRIES PTY LTD $4,000

NEW BIZ SOLUTIONS PTY LTD $4,000

NICHOL INDUSTRIES PTY LTD $7,500

NILLUMBIK SHIRE COUNCIL $15,000


PATASH AND CIVIL (GROUP) PTY LTD $8,100

R RADFORD & SON PTY LTD $11,500

RAMDRAFT PTY LTD $7,500

ROCK SOLID (GROUP) PTY LTD $11,500

RUBICON SYSTEMS AUSTRALIA PTY LTD $11,500

RYAN & MCNULTY PTY LTD $11,500

SAFEROADS HOLDINGS LIMITED $11,500

SENSEN NETWORKS PTY LTD $11,500

SOUNDFIRM PTY LTD $4,000

SOUTHERN CROSS RECYCLING GROUP PTY LTD $4,000

TECWEIGH PTY LTD $4,000

THE GOOD LOAF SOURDOUGH BAKERY & CAFE PTY LTD $11,500

THE PERSONNEL RISK MANAGEMENT GROUP PTY LTD $11,500

TOLLMAN PTY LTD $15,000

T.M.W. PHOTOGRAPHERS PTY LIMITED $11,500

UNITED BONDED FABRICS PTY LTD $9,000


VANLITE PTY LTD $3,938


WHITEHORSE CITY COUNCIL $12,000

WIMPAK EXPORT COMPANY PTY LTD $4,000

WRIGHTCOM AUSTRALIA PTY LTD $4,000

WYNDHAM CITY COUNCIL $12,000

TOTAL $662,998

HAMER SCHOLARSHIP PROGRAM

BAO, DEAN $10,000

BRAMHILL, LEAH $10,000

BRAY, THOMAS $10,000

BRENT, MATTHEW $10,000

CAIRNS REBECCA $10,000

CLEGG, LOUISE $10,000

COUCHMAN, SOPHIE $10,000

DUNN, EMILY $10,000


04 APPENDICES

OPENING DOORS TO EXPORT PLAN


ALMOND BOARD OF AUSTRALIA INC $2,000

AULIFE PTY LTD $2,000

AUSTRALIAN ORGANIC HONEY COMPANY PTY LIMITED $2,000

AUSTRALIAN SEA FISHERIES GROUP PTY LTD $2,000

BAROKES PTY LTD $2,000

BEMCO (AUSTRALIA) PTY LTD $2,000

BEST BOTTLERS PTY LTD $20,000

BON APPETIT AUSTRALIA PTY LTD $2,000

BORTANA PTY LTD $10,000

BOX GROVE VINEYARD $3,000

BRANACH MANUFACTURING PTY LTD $5,850

COATING & INDUSTRIAL TECHNOLOGIES PTY LTD $10,000

COMPOSITE MATERIALS ENGINEERING PTY LTD $2,000

CUSTOMCHOC PTY LTD $4,000

EXQUISINE PTY LTD $2,000

EZY CHEF PTY LTD $6,815

F E TECHNOLOGIES PTY LTD $10,000

FRAIS FARMS PTY LTD $6,619

GEKKO SYSTEMS PTY LTD $40,000

GOLDACRES TRADING PTY LTD $975

GOURMET NUT COMPANY PTY LTD, THE $1,883

GREEN VINEYARDS PTY LTD, THE $2,000

GTAC HOLDINGS PTY LTD $10,000

HARVEY TECHNOLOGY PTY LTD $2,088

INTERNATIONAL PREMIER FOODS PTY LTD $2,000

INVITUS PTY LTD $2,778

KERR & CO TRADING PTY LTD $2,000

LIV & LUV GOURMET FOODS $1,792

LOST VALLEY WINERY PTY LTD $2,900

LUMEN (AUSTRALIA) PTY LTD $2,000

MI MEDIA HOLDINGS LIMITED $2,000

MIDDLE CREEK VINEYARD PTY LTD $1,966

OBENA FALLS PTY LTD $4,000


PANTALICA CHEESE COMPANY PTY LTD $3,000

PJ MEATS PTY LTD $2,000

POPINA (VIC) PTY LTD $2,000

PROVEDORE GROUP PTY LTD, THE $2,000

RAMELA PTY LTD $10,000

RAVEN PARK PTY LTD $2,000

ROS LAWSON DESIGN PTY LIMITED $4,950

SELECT HARVESTS FOOD PRODUCTS PTY LTD $2,000

INTERNATIONAL EDUCATION STRATEGY


ESSENDON FOOTBALL CLUB $44,000

KANGAN BATMAN INSTITUTE OF TAFE $30,000





TOTAL $1,554,000

INVESTING IN MANUFACTURING TECHNOLOGY


AMR HEWITTS PRINTPACKAGING PTY LTD $25,000

ANDREW ENGINEERING (AUST) PTY LTD $90,000

FIBREMAKERS AUSTRALIA PTY LTD $75,000

GLASSCO AUSTRALIA PTY LTD $125,000

HILLINGTON CLOSE PTY LTD $60,000

INDUSTRIAL BRUSHWARE PTY LTD $100,000

LINCARA PTY LTD $250,000

MELBOURNE DESK COMPANY PTY LTD $60,000

MINIFAB (AUST) PTY LTD $20,000

POPINA (VIC) PTY LTD $150,000

RAMELA PTY LTD $65,000

SUGAR AUSTRALIA PTY LIMITED $125,000

TEXTOR TECHNOLOGIES PTY LTD $60,000

TOTAL $1,240,000

MANUFACTURING PRODUCTIVITY NETWORKS

AVIATION/AEROSPACE AUSTRALIA LTD $40,000

HIGH PERFORMANCE CONSORTIUM LIMITED $200,000

MELBOURNE’S WEST EXPORT NETWORK INC $24,000

TOTAL $264,000

MELBOURNE CARBON MARKET PROJECT

CARBON MARKET INSTITUTE LIMITED $1,293,311

TOTAL $1,293,311


04 APPENDICES

REGIONAL DEVELOPMENT AUSTRALIA

CITY OF GREATER DANDENONG $71,673

CITY OF WHITTLESEA $27,273

MELBOURNE’S NORTHERN ECONOMIC WEDGE INC $105,455

MOONEE VALLEY CITY COUNCIL $50,000

PREVENTIONXPRESS PTY LTD $44,000

TOTAL $298,400

SKILLS FOR GROWTH

ADVANCE CAMPERDOWN INC $5,000


BANYULE CITY COUNCIL $9,800

BAYSIDE CITY COUNCIL $10,000

BELGRAVE TRADERS ASSOCIATION INC $4,940

BENALLA BUSINESS NETWORK INC $5,000

BENALLA RURAL CITY COUNCIL $10,000

BURWOOD VILLAGE TRADERS’ ASSOCIATION INC $5,000

CENTRAL GOLDFIELDS SHIRE COUNCIL $10,000

CITY OF BALLARAT $10,000

CITY OF BOROONDARA $10,000

CITY OF CASEY $10,000

CITY OF GREATER GEELONG $10,000

CITY OF STONNINGTON $5,250

CORANGAMITE SHIRE COUNCIL $10,000

FRANKSTON CITY COUNCIL $10,000

GEELONG CHAMBER OF COMMERCE $5,000

HINDMARSH SHIRE COUNCIL $9,000

HORSHAM RURAL CITY COUNCIL $9,000

INDIGO SHIRE COUNCIL $10,000

KINGLAKE RANGES BUSINESS NETWORK INC $5,000

KINGSTON CITY COUNCIL $10,000

MAINSTREET AUSTRALIA INC $35,000

MANNINGHAM CITY COUNCIL $10,000

MELTON CITY COUNCIL $8,635

NORTHERN GRAMPIANS SHIRE COUNCIL $9,000

SOUTHERN GRAMPIANS SHIRE COUNCIL $10,000

WARRANDYTE BUSINESS ASSOCIATION INC $5,000

WEST WIMMERA SHIRE COUNCIL $9,000

YARRA CITY COUNCIL $10,000

YARRIAMBIACK SHIRE COUNCIL $9,000

TOTAL $346,625

OPENING DOORS TO EXPORT PLAN

SHAMROCK CONSULTING PTY LTD $10,000

SINO-AUSTRALIAN BEST FOOD PTY LTD $2,000

SOLUTIONS UNLIMITED AUSTRALIA PTY LTD $6,310

STELLAR FILMS GROUP PTY LTD $40,000

SWS AUSTRALIA PTY LIMITED $2,000

THE MUESLI COMPANY PTY LTD $10,664

THE SCOTCHMANS HILL GROUP PTY LTD $2,000

YELLOWBALL INVESTMENTS PTY LTD $6,545

TOTAL $350,133

PROVISION OF IMPORT REPLACEMENT SERVICES

INDUSTRY CAPABILITY NETWORK (VICTORIA) LIMITED $2,804,915

TOTAL $2,804,915

REGIONAL BLUEPRINT – INDUSTRY CAPABILITY NETWORK

INDUSTRY CAPABILITY NETWORK (VICTORIA) LIMITED $1,025,085

TOTAL $1,025,085

REGIONAL BLUEPRINT INITIATIVES

AUSTRALIAN DEFENCE APPAREL PTY LTD $300,000

BALLARAT ICT LTD $39,000

BRUCK TEXTILES PTY LTD $200,000



EAST GIPPSLAND FOOD CLUSTER INC $60,000

EAST GIPPSLAND SHIRE COUNCIL $60,000

EASTERN GIPPSLAND FOOD AND WINE NETWORK INC $5,000

GMIC LIMITED $180,000

HUYCK WANGNER AUSTRALIA PTY LTD $60,000

KAGOME FOODS AUSTRALIA PTY LTD $35,000

KINGLAKE TIMBER INDUSTRIES PTY LTD $24,000

MELBOURNE FOOD AND WINE EVENTS LTD $200,000

MILDURA DEVELOPMENT CORPORATION INC $15,000

ORGANIC FEDERATION OF AUSTRALIA LTD $10,000

PRAHRAN MARKET PTY LTD $37,500

QUEEN VICTORIA MARKET PTY LTD $5,263

SELKIRK BRICK PTY LTD $100,000

THE ROYAL AGRICULTURAL SOCIETY OF VICTORIA LIMITED $55,000

WIMMERA DEVELOPMENT ASSOCIATION INC $15,000

WINE AUSTRALIA CORPORATION $10,000

TOTAL $1,490,763


04 APPENDICES

TRADE MISSION ASSISTANCE PROGRAM – CHINA

AGL LOY YANG PTY LTD $3,000

AGROPRAISALS PTY LTD $2,381

AIR INTERNATIONAL THERMAL (AUSTRALIA) PTY LTD $3,000

ALLITON SECURITIES PTY LTD $3,000

AMAZON PHARMA PTY LTD $2,999

AME SYSTEMS PTY LTD $3,000

AOT INBOUND PTY LTD $3,000

APPLE AND PEAR AUSTRALIA LIMITED $3,000

ARARAT MEAT EXPORTS PTY LTD $3,000

ARCHI-TEKTONIC PTY LTD $3,000

ASHTON RAGGATT MCDOUGALL PTY LTD $3,000

ASIAN EXECUTIVE AUSTRALIA REVIEW, THE $3,000

ASPECT STUDIOS PTY LTD $3,000

ATLITE (AUSTRALIA) PTY LTD $3,000

AUSAB PTY LTD $3,000

AUSFINE FOODS INTERNATIONAL PTY LTD $3,000

AUSPRO GROUP PTY LTD $3,000

AUSTRALIA CHINA BUSINESS COUNCIL $3,000

AUSTRALIA LIAN HE PTY LTD $3,000

AUSTRALIAN COUNCIL FOR PRIVATE EDUCATION AND TRAINING $3,000

AUSTRALIAN INFORMATION INDUSTRY ASSOCIATION LIMITED $3,000

AUSTRALIAN INSTITUTE OF MANAGEMENT – VICTORIA & TASMANIA $3,000

AUSTRALIAN INSTITUTE OF TECHNICAL TRAINING PTY LTD $3,000

AUSTRALIAN PROVINCIAL CHEESE PTY LTD $3,000

AUSTRALIAN WINE RESEARCH INSTITUTE LIMITED, THE $3,000

AUSTRALIAN WINE TOUR COMPANY PTY LTD $3,000

AUTOCRC LTD $3,000

AVALON AIRPORT AUSTRALIA PTY LTD $3,000

AVIATION TRAINING SERVICES VICTORIA PTY LTD $3,000

BALLANDE GROUPE AUSTRALASIA PTY LTD $3,000

BAOMONEY PTY LTD $2,750

BARRO GROUP PTY LIMITED $2,746

BELLARINE ESTATE PTY LTD $3,000

BEONIC PTY LTD $3,000

BGP INTERNATIONAL PTY LTD $3,000

BILECTUAL ENTERPRISE (AUSTRALIA) PTY LTD $2,991

BIO PHARMACEUTICAL SOLUTIONS PTY LTD $3,000

BIOMELBOURNE NETWORK INC $5,674

BIRD DE LA COEUR ARCHITECTS PTY LIMITED $3,000

BLACKJACK WINES PTY LTD $3,000

BONKERS TRADING GROUP PTY LTD $3,000

STRONG ECONOMIC PATHWAYS FOR ABORIGINAL VICTORIANS

VICTORIAN EMPLOYERS CHAMBER OF COMMERCE AND INDUSTRY $160,000

TOTAL $160,000

TIME TO THRIVE 2

SMALL BUSINESS MENTORING SERVICE INC $81,250

TOTAL $81,250

TRADE MISSION ASSISTANCE PROGRAM – AMERICAS

AGENT ORIENTED SOFTWARE PTY LTD $1,435

BARTCO TRAFFIC EQUIPMENT PTY LTD $2,000

CETEC PTY LTD $2,000

CROW CAMS AUSTRALIA PTY LTD $2,000

CS & NS MARCH PTY LTD $2,000

CYCO SYSTEMS CORPORATION PTY LTD $687

DIVER METAL PRODUCTS PTY LIMITED $2,000

FOURSIGHT ARCHITECTS PTY LTD $2,000

HARROP ENGINEERING AUSTRALIA PTY LTD $2,000

INCOGNITUS PTY LTD $2,000

INTEGRAL ALLIANCE PTY LTD $2,000

INTERNATIONAL VENUE GROUP PTY LTD $2,000


MURDOCH CONSULTING PTY LTD $2,000

PEDDER’S SHOCK ABSORBER SERVICE PTY LTD $612

POWELL, SHANNON $2,000

SED PARTNERS PTY LTD $2,000

SENTRIC PTY LTD $2,000

THE AUSTRALIAN TURNTABLE COMPANY PTY LTD $2,000

THE ICE GROUP PTY LTD $2,000

VEHICLE SAFETY ACCESSORIES PTY LTD $2,000


VISIONARY DESIGN DEVELOPMENT PTY LTD $2,000

TOTAL $42,734


31C PTY LTD $3,000

A J MAWSON PTY LTD $3,000

ABMARC $3,000

AC MEDIA GROUP PTY LTD $3,000

AC SMART LINK PTY LTD $3,000

ACVM PTY LTD $3,000

ADVANCE VISION TECHNOLOGY PTY LTD $3,000

AEROSPACE AUSTRALIA LTD $3,000

AFM INVESTMENT PARTNERS PTY LTD $3,000


04 APPENDICES


EEC INTERNATIONAL PTY LTD $2,940

ELITE CABLES PTY LTD $3,000

ELITE REAL ESTATE AND DEVELOPMENT (VIC) PTY LTD $3,000

ELORANE PTY LTD $2,669

ELTHAM COLLEGE $3,000

EMERALD TOURIST RAILWAY BOARD $2,481

EMERGE CAPITAL PTY LTD $3,000

ENVIRONMENTAL CLEAN TECHNOLOGIES LIMITED $3,000

EVANS AND PARTNERS PTY LTD $3,000

EVISION PTY LIMITED $3,000

EXASITES PTY LTD $3,000

EXTRAGREEN HOLIDAYS (AUST) PTY LTD $3,000

FAIRMONT MEDICAL PRODUCTS PTY LTD $3,000

FEDERATION OF AUTOMOTIVE PRODUCTS MANUFACTURERS LIMITED $3,000

FENDER KATSALIDIS (AUST) PTY LTD $3,000

FIVE STAR LAMB PTY LTD $3,000

FORESIGHT COMPUTER SERVICES PTY LTD $3,000

FORTREND SECURITIES PTY LTD $3,000

FOURSIGHT ARCHITECTS PTY LTD $3,000

FOX & LILLIE PTY LTD $3,000

FRANKSTON CITY COUNCIL $3,000

FRONTIER CARBON PTY LTD $3,000

FUTURE FIBRE TECHNOLOGIES PTY LTD $3,000

GARACAMA PTY LTD $2,218

GBS VENTURE PARTNERS PTY LTD $3,000


GEOMANTIA PTY LTD $3,000

GH OPERATIONS PTY LTD $3,000

GHD PTY LTD $3,000

GHG SERVICES PTY LTD $3,000

GIPPSLAND EDUCATION PRECINCT INC $3,000

GIPPY FOODS PTY LTD $3,000

GOONA WARRA VINEYARD PTY LTD $3,000

GRANDCITY (AUSTRALIA) TRAVEL & TOUR PTY LTD $3,000

GREAT FOREST AUSTRALIA PTY LTD $2,669

GREAT SOUTHERN TOURING ROUTE INC $3,000

GREEN VINEYARDS PTY LTD, THE $3,000

GREENCO WATER PTY LTD $3,000

GREY INNOVATION PTY LTD $3,000

GS & DL GJERGJA $3,000

HASSELL LTD $2,874


BOSTON DIGITAL COMMUNICATIONS PTY LTD $3,000

BOX GROVE VINEYARD $3,000

BOX HILL INSTITUTE OF TAFE $3,000

BROKERS CARBON PTY LTD $2,996

BROWN BROTHERS MILAWA VINEYARD PTY LTD $3,000

BULPADOK PTY LTD $3,000


CAMPBELLS WINES PTY LTD $3,000

CENTURY GROUP PTY LTD $3,000

CERTAINTY COMPLIANCE PTY LTD $3,000

CICADA.NET.AU PTY LTD $2,349

CITOLA LTD $3,000


CK DESIGNWORKS PTY LTD $2,709

CLIMATE BRIDGE PTY LTD $2,581

CM AND RH PFEIFFER $3,000

COBALT NICHE DESIGN PTY LTD $2,422

COLLINS ST MEDIA PTY LTD $3,000

COMPLETE POST PRODUCTION CENTRE PTY LTD $3,000

COMPLEX SECURITY MANAGEMENT PTY LTD $3,000

COMPUTIST BIO-NANOTECH PTY LTD $2,713

COUNCIL OF TEXTILES AND FASHION INDUSTRIES OF AUSTRALIA LIMITED $3,000

CPE SYSTEMS PTY LTD $2,669

CPS TECHNOLOGY GROUP PTY LTD $3,000

CPT GLOBAL LIMITED $3,000

CSIRO $3,000

CULTURAL INTELLIGENCE PTY LTD $3,000

CYLK PTY LTD $3,000

DAIRY FOOD SAFETY VICTORIA $3,000

DANIELS CORPORATION INTERNATIONAL PTY LTD $6,000

DB RESULTS PTY LTD $3,000


DESTINATION GIPPSLAND LTD $3,000

DESTINATION MELBOURNE LIMITED $3,000

DESTINATION PHILLIP ISLAND INC $3,000


DOSAQUA $3,000

DRIVER GROUP PTY LTD $3,000

E-CENTRICINNOVATIONS PTY LTD $3,000


ECO PACIFIC PTY LTD $3,000

ECOTIDE PTY LTD $3,000


04 APPENDICES


MOORABBIN FLIGHT TRAINING ACADEMY PTY LTD $3,000

MOUNT BULLER AND MOUNT STIRLING RESORT MANAGEMENT BOARD $3,000

MURANEX PTY LTD $3,000

MURRINDINDI VINEYARDS PTY LTD $2,962

MUSEUM OF CHINESE AUSTRALIAN HISTORY INC, THE $2,827

NAGAMBIE WINE CORPORATION PTY LTD $3,000

NAPIER & BLAKELEY PTY LTD $3,000

NATIONAL ICT AUSTRALIA LIMITED $2,776

NEGOTIACTION PTY LTD $3,000

NEWTECH ENERGY PTY LTD $3,000

NICHOLS CROWDER (MOORABBIN) PTY LTD $2,387

OBENA FALLS PTY LTD $3,000

OCTA PHILLIP SECURITIES LIMITED $3,000

OLIVER, JEREMY $3,000

OMEGA GLOBAL INVESTORS PTY LTD $3,000

OMNICONNECT PTY LTD $2,548


PARCUS GROUP PTY LTD $3,000

PATON’S MACADAMIA PLANTATIONS PTY LTD $3,000

PCR AUSTRALASIA PTY LTD $3,000

PEERLESS HOLDINGS PTY LIMITED $3,000

PENINSULA SEAROAD TRANSPORT PTY LTD $3,000

PERIPLOI AVIATION $3,000

PHILLIP ISLAND NATURE PARK BOARD OF MANAGEMENT INC $3,000

PREMCAR PTY LTD $3,000

PROPERTY COUNCIL OF AUSTRALIA LIMITED $3,000

PYRENEES HAY PROCESSORS CO-OPERATIVE LIMITED $3,000

PYRENEES RIDGE WINERY PTY LTD $3,000

QUATIUS AUST PTY LTD $3,000

RALPHS MEAT COMPANY PTY LTD $3,000

RAMDRAFT PTY LTD $3,000

RATCLIFFE ARCHITECTURE PTY LTD $3,000


RBINK PTY LTD $3,000

RECTIFIER TECHNOLOGIES PACIFIC PTY LTD $3,000

RED ROCK LEISURE PTY LTD $3,000

REDFLEX HOLDINGS LTD $3,000

REGIMENTAL CONDIMENT COMPANY PTY LTD, THE $3,000

RHINE RUHR PTY LTD $3,000


HINTON & ASSOCIATES (AUST) PTY LTD $3,000

IASCEND POLYTECHNIC PTY LTD $3,000

INDUSTRIAL PROCESS CONTROLS LIMITED $2,926

INFRARISK PTY LTD $3,000

INO8 PTY LTD $3,000

INTERNATIONAL MARKETING AUSTRALIA PTY LTD $3,000

J & M FREDERIKSEN $3,000

JATENERGY LIMITED $3,000

JC’S QUALITY FOODS PTY LTD $2,911

JDLF INTERNATIONAL PTY LTD $3,000

KBSG PTY LTD $3,000

KUWAII $2,918

KW TRADING PTY LTD $3,000

LA TROBE RESOURCES PTY LTD $3,000


LAB ARCHITECTURE STUDIO PTY LTD $3,000

LANGREY INTERNATIONAL PTY LTD $3,000

LATROBE CITY COUNCIL $6,000

LAW INSTITUTE OF VICTORIA LTD $3,000

LEONARD ST PTY LTD $3,000

LIQUIP INTERNATIONAL PTY LIMITED $2,395

LUI HON PTY LTD $3,000

LUMEN (AUSTRALIA) PTY LTD $2,997

LYE, WILLIAM $2,222

M & M FORBES $3,000

MACFARLANE BURNET INSTITUTE FOR MEDICAL RESEARCH AND PUBLIC HEALTH LTD $3,000

MAGIC DYNASTY PTY LTD $3,000

MANDURANG VALLEY WINES $3,000


MARK DAVIS HOMES PTY LTD $3,000

MBD ENERGY LIMITED $2,631

MCLEAN DELMO PTY LTD $3,000


MEDHURST WINES PTY LTD $2,787

MELBOURNE CONVENTION AND VISITORS BUREAU LTD $3,000

MENZIES INSTITUTE OF TECHNOLOGY PTY LTD $1,969

MEREDITH DAIRY PTY LTD $3,000

MHG GLASS PTY LIMITED $2,050

MIND ATLAS PTY LTD $2,966

MONASH IVF PTY LTD $3,000


MONEY 101 – MONEY FOR LIFE PTY LTD $3,000


04 APPENDICES


ULTRASPIN TECHNOLOGY PTY LTD $3,000

UNITINGCARE COMMUNITY OPTIONS $3,000



URBAN BIO SYSTEMS PTY LTD $2,849

URBAN DEVELOPMENT INSTITUTE OF AUSTRALIA (VICTORIA) $3,000

URBAN REFORESTATION $3,000

VALLEYARM DIGITAL PTY LTD $3,000

VARCON CONSTRUCTIONS (AUST) PTY LTD $3,000

VENTURE DMG PTY LTD $3,000

VICPAK PTY LTD $2,500


VICTORIAN ALPS WINE COMPANY PTY LTD $3,000

VICTORIAN HEALTHCARE ASSOCIATION LIMITED, THE $3,000

VICTORIAN IRON PTY LTD $3,000

VICTORIAN PARTNERSHIP FOR ADVANCED COMPUTING LIMITED $3,000

W & M MAHONY PTY LTD $3,000

WALTON CONSTRUCTION PTY LTD $6,000

WANDIN VALLEY FARMS $3,000

WARRNAMBOOL CITY COUNCIL $3,000

WENIC PTY LTD $3,000

WILLOW CREEK VINEYARDS PTY LTD $3,000

YARRA GUM AGRIFOODS PTY LTD $3,000

YARRA RANGES REGIONAL MARKETING LTD $3,000

Z & H INTERNATIONAL INVESTMENTS PTY LTD $3,000

ZERO DISCHARGE PTY LTD $2,748

ZHI HONG (AUST) GROUP PTY LTD $2,968

ZOYU SOLUTION PTY LTD $3,000

TOTAL $863,056

TRADE MISSION ASSISTANCE PROGRAM – INDIA

A-Z BUYER’S (AUSTRALIA) PTY LTD $2,000

A MAZE ‘N’ THINGS PTY LTD $3,000

AEROSPACE AUSTRALIA LTD $3,000

AEROSTAFF AUSTRALIA PTY LTD $2,978

ARRUS KNOBLE (AUST) PTY LTD $3,000

ATLITE (AUSTRALIA) PTY LTD $2,000

AUS GRAIN EXPORTS PTY LTD $2,872

AUSPRO GROUP PTY LTD $2,745

AUSTRALASIAN WINE EXPORTERS PTY LTD $2,968


RMIT UNIVERSITY $9,996

ROYAL FREEMASONS LTD $3,000

SALLY’S PADDOCK PTY LTD $3,000

SANDHURST RIDGE $3,000

SCORPIO FOODS PTY LTD $3,000

SEAGO PROPERTY PTY LTD $3,000

SENKO ADVANCED COMPONENTS (AUSTRALIA) PTY LTD $3,000

SHAW STOCKBROKING LIMITED $3,000

SKYLAH PTY LTD $3,000

SOLUTIONS UNLIMITED AUSTRALIA PTY LTD $3,000

SOURCEDYNAMIX ASIA PACIFIC PTY LTD $3,000

SOUTHERN UNITED SEAFOOD AUSTRALIA PTY LTD $2,009

SPACES PTY LTD $2,884

SPE (MANAGEMENT) PTY LTD $3,000

SPORTAINMENT LEISURE PTY LTD $3,000

SPROCKET INVESTMENTS PTY LTD $3,000

STAY IN BED MILK AND BREAD PTY LTD $3,000

STEEL & SOUND WALL SOLUTIONS PTY LTD $3,000

STELCO CHEMICALS INTERNATIONAL PTY LTD $3,000

STRATICA INTERNATIONAL PTY LTD $3,000

STREAMLINE SOLUTIONS PTY LIMITED $3,000

STUDIO 505 PTY LTD $3,000

STURDY, JOHN $3,000

SUMMERFRUIT AUSTRALIA LIMITED $3,000

SUNRAYSIA INSTITUTE OF TAFE $3,000


SWISSE WELLNESS PTY LTD $3,000

SYN|THESIS MED CHEM PTY LTD $3,000

TAHBILK PTY LTD $3,000

TATURA MILK INDUSTRIES LIMITED $3,000

TECH RESOURCE – TECHNOLOGY, TEAMS, TALENT $3,000

THE AUSTRALIAN INDUSTRY GROUP $3,000


THE SOVEREIGN HILL MUSEUMS ASSOCIATION $3,000

THREE LAMBS PTY LTD $3,000

TMD GLOBAL PTY LTD $3,000

TOLUCH HOLDINGS PTY LTD $3,000

TOWER SYSTEMS INTERNATIONAL (AUST) PTY LTD $3,000

TRISTAR AVIATION COMPANY PTY LTD $3,000

TXM LEAN SOLUTIONS PTY LTD $3,000


04 APPENDICES



AUSTRALIAN NATIONAL COLLEGE PTY LTD $3,000

AVIATION/AEROSPACE AUSTRALIA LTD $3,000

BERKELEY COLLEGE PTY LTD $3,000

BORON MOLECULAR PTY LIMITED $2,439

BROKERS CARBON PTY LTD $6,000


BUSINESS WISDOM PTY LTD $3,000

CAPRICORNIA PTY LTD $3,000

CAREER LIFE COLLEGE PTY LTD $3,000

CEI PTY LIMITED $3,000

CETEC PTY LTD $5,000

CLIMATE BRIDGE PTY LTD $2,910

COMPETITIVE EDGE (ASIA) PTY LTD $2,063

CONTRACT HELIS PTY LTD $3,000

COP-A-MATE PRODUCTS PTY LTD $3,000

D A INT PTY LTD $5,000


DESIGN INSTITUTE OF AUSTRALIA $2,000

DESTINATION PHILLIP ISLAND INC $3,000

DIRECTORY CONCEPTS PTY LTD $3,000


ECO PACIFIC PTY LTD $3,000

ECOTECH PTY LTD $3,000

EDITURE LIMITED $3,000

EXCELSIOR INTERNATIONAL PTY LTD $2,000

EXERGEN PTY LTD $3,000

EXPERIENCES GROUP LTD, THE $2,936

FIDELIA SYSTEMS (AUSTRALIA) PTY LTD $5,000


GLOBAL EDUCATION AND TRAINING GROUP PTY LTD $2,415

GRAY LINE OF MELBOURNE PTY LTD $3,000

GREAT SOUTHERN TOURING ROUTE INC $3,000

HUMAN PERFORMANCE COMPANY PTY LTD, THE $3,000

HYDRIX PTY LTD $3,000

HYDRONUMERICS PTY LTD $5,000

IDRIA PTY LTD $2,000

INGENEUS PTY LTD $3,000

INO8 PTY LTD $2,479


ISPONE PTY LTD $2,300



KAREN KNOWLES ENTERPRISES PTY LTD $5,000

KNOESIS CONSULTING PTY LTD $3,000

KORN TECHNOLOGIES PTY LTD $3,000

KS ENVIRONMENTAL PTY LTD $3,000



LARGOS SERVICES PTY LTD $2,559

LIQUID ASSETS GROUP PTY LTD $4,957

MATIM PTY LTD $3,000



MIND BLOWING FILMS PTY LTD $2,000

MISSION CAPTURE PTY LTD $4,787


MORNINGTON PENINSULA SHIRE COUNCIL $3,000

MOUNT BULLER AND MOUNT STIRLING RESORT MANAGEMENT BOARD $3,000

MURANEX PTY LTD $3,000

MY HEROES PTY LTD $5,000

NATURE’S BLEND PTY LTD $2,000

NET BALANCE MANAGEMENT GROUP PTY LTD $2,000

NEUROSCIENCES VICTORIA LIMITED $3,000

NMFI PTY LTD $2,944

NWO GROUP PTY LTD $3,000

O1A INTERNATIONAL PTY LTD $3,000

OPEN CHANNEL CO-OPERATIVE LIMITED $3,000

OPTURION PTY LTD $3,000

PADGHAM & COX PTY LTD $3,000

PETERS COMMODITIES PTY LTD $2,844

PHILLIP ISLAND NATURE PARK BOARD OF MANAGEMENT INC $2,824

PINNACLE SCIENCE LABORATORIES AUSTRALIA PTY LTD $3,000

REGENERATION UNLIMITED PTY LTD $3,000

REGIMENTAL CONDIMENT COMPANY PTY LTD, THE $3,000


SINGLE SERVE PACKAGING PTY LTD $2,000

SISSIT PTY LTD $3,000

SMART OPTIONS PTY LTD $3,000

SOUTHERN CROSS COMPUTER SYSTEMS PTY LTD $2,000

SPACES PTY LTD $3,000

SPICE TELECOM AUSTRALIA PTY LTD $3,000


04 APPENDICES


SUE HODGES PRODUCTIONS PTY LTD $2,000


SYNTHESIS RESEARCH PTY LTD $3,000

TELEZON LIMITED $3,000

THE CONVERSATION MEDIA GROUP LIMITED $5,095

THE GOOD LOAF SOURDOUGH BAKERY & CAFE PTY LTD $2,000

THE SOVEREIGN HILL MUSEUMS ASSOCIATION $3,000

THOMPSON GCS PTY LTD $3,000

TRIMBLE PLANNING SOLUTIONS PTY LTD $3,000

TRISTAR AVIATION COMPANY PTY LTD $3,000

TYRES RECLAIMED PTY LTD $2,820


V-PATCH MEDICAL SYTEMS 1 PTY LTD $3,000

WE-DO-IT PTY LTD $3,000

TOTAL $324,475

TRADE MISSION ASSISTANCE PROGRAM – JAPAN AND KOREA

ASIA ACCESS PTY LTD $1,719

AUSTRALIAN COLLEGE OF SPORTS THERAPY PTY LTD $2,000


BLUE PYRENEES ESTATE PTY LTD $4,000

BOUTIQUE BEVERAGES (VIC) PTY LTD $1,785

CAMILO MARITIME LOGISTICS PTY LTD $2,000

DEMUM PTY LTD $2,000



EZY CHEF PTY LTD $2,000

FUTURIS AUTOMOTIVE INTERIORS (AUSTRALIA) PTY LTD $2,000

KERR & CO TRADING PTY LTD $2,000


MARUAN PTY LIMITED $2,000


MURRAY RIVER ORGANICS PTY LTD $2,000

REDFLEX TRAFFIC SYSTEMS PTY LTD $2,000



SUNNY RIDGE EPICURE PTY LTD $2,000

VENTURE DMG PTY LTD $2,000

VICPAK PTY LTD $2,000

WINDTAN PTY LIMITED $2,000

TRADE MISSION ASSISTANCE PROGRAM – JAPAN AND KOREA

TOTAL $47,505

TRADE MISSION ASSISTANCE PROGRAM – MIDDLE EAST AND NORTH AFRICA

A-Z BUYER’S (AUSTRALIA) PTY LTD $2,190

ADVANCED WATER GROUP PTY LTD $3,000


ARCHI-TEKTONIC PTY LTD $3,000

ARKA ORGANICS PTY LTD $2,409

ASHTON PTY LTD $3,000

AUSTRALIA ARAB CHAMBER OF COMMERCE & INDUSTRY INC $1,955


AUSTRALIAN NATIONAL COLLEGE PTY LTD $3,000


AXFORD OLSZEWSKI STRATEGIES PTY LTD $3,000

A.L.C. TRADING CO PTY LTD $2,000

BAW BAW SHIRE COUNCIL $2,875

BC3 THOROUGHBREDS AUS PTY LTD $2,810


BENDIGO REGIONAL INSTITUTE OF TAFE $3,000

BGH INTERNATIONAL PTY LTD $3,000

BKP RUBBER PTY LTD $3,000

BLUE GUM FARM (AUST) PTY LTD $2,000

BONKERS TRADING GROUP PTY LTD $5,000

BROWN BROTHERS MILAWA VINEYARD PTY LTD $2,000

BRUCK TEXTILES PTY LIMITED $2,785

BURRA FOODS PTY LTD $3,000

CGEAR AUSTRALIA PTY LTD $3,000

CIBUS GROUP PTY LTD $3,000

COUNTRY CUISINE (AUSTRALIA) PTY LTD $3,000

CRINTAND PTY LTD $3,000

CRISPIN BENNETT INTERNATIONAL HORSE TRANSPORT PTY LTD $1,842

CROWN MELBOURNE LTD $3,000

DALLAS DELTA CORPORATION PTY LTD $3,000

DEFENCE COMMUNICATIONS INDUSTRY PTY LTD $3,000

ECOTECH PTY LTD $3,000

EQUINE PRODUCTIONS PTY LTD $2,000


FELIX DOMUS PTY LIMITED $3,000

FRAZZICA PRODUCTIONS PTY LTD $2,061


04 APPENDICES


GEOFFREY GARDINER DAIRY FOUNDATION LIMITED $3,000

GIPPY FOODS PTY LTD $2,575

GLOWFAST MARINE PTY LTD $3,000

GOULBURN OVENS INSTITUTE OF TAFE $3,000

GREENCO WATER PTY LTD $3,000

HAWTHORN LEARNING PTY LIMITED $3,000

HEALTHKARE INTELLIGENCE PTY LTD $3,000

HEATHER BRAE SHORTBREADS PTY LTD $3,000

HOOGWEGT AUSTRALIA PTY LTD $3,000

HY GAIN FEEDS PTY LIMITED $3,000

IER PTY LTD $3,000

INDUSTRIAL BRUSHWARE PTY LTD $3,000

INTER AGRI GROUP PTY LTD $3,000

INTERAUST FOODS PTY LTD $3,000



KARA GROUP OF COMPANIES PTY LTD, THE $3,000

KENTUCKY EQUINE RESEARCH (AUSTRALASIA) PTY LTD $3,000

KEY CREATIVE PTY LTD $3,000

KIM FLETCHER MILLINERY ART $2,614

KOSLEX PTY LTD $3,000


LIQUIP INTERNATIONAL PTY LIMITED $3,000


M & M FORBES $2,000

MACEDON RANGES SHIRE COUNCIL $3,000

MAINSTREAM AQUACULTURE PTY LTD $3,000

MANDEL TRADING PTY LTD $3,000

MARWA FOODS PTY LTD $3,000

MATHIAS AUSTRALIA PTY LTD $3,000

MCKEAN MCGREGOR PTY LTD $2,000


MIDFIELD MEAT INTERNATIONAL PTY LTD $3,000

MOIRA SHIRE COUNCIL $3,000

MOTEC PTY LTD $3,000

MULTIPANEL PTY LTD $3,000

N & M GARDNER NOMINEES PTY LIMITED $5,000

NACH TRADING PTY LTD $3,000

NATIONAL ARAB RACEHORSE ASSOCIATION INC $2,000

NATIONAL SAFETY AGENCY LTD $3,000


NATURE’S BLEND PTY LTD $2,000

NORTHERN MELBOURNE INSTITUTE OF TAFE $3,000

OASIS EXPORTS PTY LTD $3,000

OASIS FOODS INTERNATIONAL PTY LTD $3,000

ORGANIC GROWERS GROUP PTY LTD $3,000

PATON’S MACADAMIA PLANTATIONS PTY LTD $2,000

PATTIES FOODS LTD $2,000

PCR AUSTRALASIA PTY LTD $3,000

PETERS COMMODITIES PTY LTD $3,000

POPPET INTERNATIONAL PTY LTD $3,000

PRO PORTION FOODS PTY LTD $3,000

R S PERRY & SONS $2,458


RELAY MONITORING SYSTEMS PTY LTD $3,000

RICEGROWERS LIMITED $3,000

RMIT TRAINING PTY LTD $3,000

RONSTAN INTERNATIONAL PTY LTD $3,000

ROTHE LOWMAN PROPERTY PTY LTD $3,000

S & J BLACKHURST PTY LTD $3,000

SAFEMATE ANTI-SLIP PTY LIMITED $3,000

SAFEROADS PTY LTD $3,000

SEVEN PEAKS CONSULTING PTY LTD $3,000

SHEILA BAXTER TRAINING CENTRE PTY LTD $2,821

SINO-AUSTRALIAN BEST FOOD PTY LTD $4,625

SOUTHERN CROSS FEEDS PTY LTD $2,000


TECH RESOURCE – TECHNOLOGY, TEAMS, TALENT $2,000

TECTURA PTY LTD $3,000

THE MUESLI COMPANY PTY LTD $3,000

THERMO TRANSIT TECHNOLOGIES PTY LTD $3,000

THINK FENCING PTY LTD $2,000

TRADITIONAL FOODS (AUST) PTY LTD $3,000


VICTORIA RACING CLUB LIMITED $6,000

VICTORIAN FARMERS FEDERATION $3,000

VICTORIAN TAFE INTERNATIONAL INC $2,594

WALKWEST PTY LTD $3,000

WANDIN VALLEY FARMS $3,000

WAPROO PTY LTD $3,000

WORKCO LIMITED $3,000

TOTAL $336,795


04 APPENDICES

TRADE MISSION ASSISTANCE PROGRAM – SOUTH-EAST ASIA


AQUEOUS SOLUTIONS PTY LTD $2,000

ARUP PTY LTD $2,000

ASCET INSTITUTE OF TECHNOLOGY PTY LTD $3,251

AULIFE PTY LTD $2,000

BAILLIEU HOLST LTD $1,785


BERKELEY COLLEGE PTY LTD $2,000

BJSB PTY LTD $2,000

BLUE BIRD PRODUCTS AUSTRALIA PTY LTD $2,000

BULMER’S FARM FRESH VEGETABLES PTY LTD $1,822

CITY OF WHITTLESEA $2,000

CLEAN TEQ LIMITED $2,000

CRUSADER HOSE PTY LIMITED $2,000

DAVID LOCK ASSOCIATES (AUSTRALIA) PTY LTD $2,000

DESMOND FITZGERALD & ASSOCIATES PTY LTD $2,000

EAST GIPPSLAND FOOD CLUSTER INC $2,000

ERIEZ MAGNETICS PTY LIMITED $2,000

GARACAMA PTY LTD $2,000

GRIMSHAW ARCHITECTS PTY LTD $2,000

HOLMESGLEN INSTITUTE OF TAFE $2,000

KINLEY PTY LTD $2,000



LENBRIDGE FORGE PTY LTD $2,000

MCELLIGOTT PARTNERS PTY LTD $2,000

MEGT (AUSTRALIA) LTD $2,000

MIGENIUS PTY LTD $2,000

NORTHERN MELBOURNE INSTITUTE OF TAFE $2,000

PEDDLE THORP MELBOURNE PTY LTD $2,000

SAFEMATE ANTI-SLIP PTY LIMITED $2,000

SHEILA BAXTER TRAINING CENTRE PTY LTD $2,000

SILVER THOMAS HANLEY (AUS) PTY LTD $2,000


STAR FOODS PTY LTD $2,000

STEINERT AUSTRALIA PTY LTD $2,000

TAYLORS DEVELOPMENT STRATEGISTS PTY LTD $2,000

TECTURA PTY LTD $2,000


ULTRASPIN TECHNOLOGY PTY LTD $2,000

VISIONARY DESIGN DEVELOPMENT PTY LTD $2,000

YOUTH EMPLOYMENT SCHEME

ADULT MULTICULTURAL EDUCATION SERVICES $12,000

DEPARTMENT OF EDUCATION AND EARLY CHILDHOOD DEVELOPMENT $720,000


DEPARTMENT OF PLANNING AND COMMUNITY DEVELOPMENT $112,500

DEPARTMENT OF TREASURY AND FINANCE $90,000

GOLDFIELDS EMPLOYMENT AND LEARNING CENTRE INC $34,000

LEND LEASE COMMUNITIES (MANAGEMENT SERVICES) PTY LTD $14,400

MENTOR HUMAN RESOURCES PTY LTD $74,800

ST KILDA YOUTH SERVICE INC $60,400

SUNRAYSIA AND MURRAY GROUP TRAINING LTD $30,000

WHITE LION INC $78,000

YOUNG MEN’S CHRISTIAN ASSOCIATION OF VICTORIA INC, THE $83,518

YOUTH CONNECT INC $61,250

TOTAL $1,550,868

TOURISM AND AVIATION GRANTS

A grant payment of $50,000 was made to the following organisation under the Department’s Regional Aviation Fund.

REGIONAL AVIATION FUND

WEST WIMMERA SHIRE COUNCIL $50,000

TOTAL $50,000

TRADE MISSION ASSISTANCE PROGRAM – SOUTH-EAST ASIA

WSP BUILDINGS PTY LTD $2,000

YORKE INSTITUTE PTY LTD $2,000

TOTAL $86,835

VICTORIAN INDUSTRY AND MANUFACTURING STRATEGY

AUSTRALIAN AUTOMOTIVE AFTERMARKET ASSOCIATION LTD $85,500

AUSTRALIAN INDUSTRY & DEFENCE NETWORK INC – VICTORIA $80,000

AUSTRALIAN OVERSEAS FOUNDATION INCORPORATED $12,500

AUTOCRC LTD $200,000

BARDEN FABRICATIONS PTY LTD $60,000

CARAVAN TRADE AND INDUSTRIES ASSOCIATION OF VICTORIA $30,000

CHASSIS BRAKES INTERNATIONAL (AUSTRALIA) PTY LTD $75,000

INDUSTRY CAPABILITY NETWORK LIMITED $5,000

INTEGRA PACKAGING VIC PTY LTD $4,000



SAMMITR (AUSTRALIA) PTY LTD $36,265

VOLGREN AUSTRALIA PTY LTD $250,000

TOTAL $1,079,175

WORKFORCE PARTICIPATION – TRUST MANAGED PROGRAMS


CITY OF BALLARAT $103,000




GROUP TRAINING ASSOCIATION OF VICTORIA INC $218,400

MILDURA RURAL CITY COUNCIL $3,000

MUNICIPAL ASSOCIATION OF VICTORIA $70,000

SWAN HILL RURAL CITY COUNCIL $105,506

TIGERS IN COMMUNITY FOUNDATION LIMITED $60,000

VICTORIAN TRANSPORT ASSOCIATION INC $44,000

WANGARATTA RURAL CITY COUNCIL $116,650

WARRNAMBOOL CITY COUNCIL $113,000

WIMMERA DEVELOPMENT ASSOCIATION INC $113,000

WODONGA CITY COUNCIL $3,000

YOUTH CONNECT INC $408,816

TOTAL $1,593,772


04 APPENDICES

Victorian Energy Efficiency Target Act 2007

Victorian Renewable Energy Act 2006

MANUFACTURING

Victorian Industry Participation Policy Act 2003 (administered jointly with the Minister for State Development)

MAJOR PROJECTS

Crown Land (Reserves) Act 1978 – as it applies to Crown allotments 2219; 2220; 2221; and 2222 on OP122930 and Crown allotments 2026; 2031; 2162; and 2223 on OP122933, County of Bourke, Parish of Melbourne South, City of South Melbourne. The Act is otherwise administered by the Assistant Treasurer, the Minister for Corrections, the Minister for Environment and Climate Change, the Minister for Health, the Minister for Ports, and the Minister for Sport and Recreation.

Melbourne Market Authority Act 1977

Project Development and Construction Management Act 1994 – Part 5A (except to the extent that it relates to the exercise of powers and functions under Part 9A of the Planning and Environment Act 1987) and Part 8. The Act is otherwise administered by the Minister for Finance, the Minister for Planning and the Premier.

AVIATION INDUSTRY

Aerodrome Landing Fees Act 2003

Australian Airlines (Intrastate Services) Act 1990

Civil Aviation (Carriers’ Liability) Act 1961

Wrongs Act 1958 (Part VI) – this part is jointly administered with the Attorney-General. The Act is otherwise administered by the Attorney-General.

Planning and Environment Act 1987 –

> Part 3C, except in so far as it relates to the land along the Ninety Mile Beach that is shown either as ‘Areas within the Settlement Boundaries’ or ‘Areas outside the Settlement Boundaries’ on the plans forming part of the document entitled ‘Ninety Mile Beach Development and Subdivision Controls: The Honeysuckles to Paradise Beach’ and dated August 2007 (revised June 2009) that was incorporated into the Wellington Planning Scheme by Amendment C48 to the Wellington Planning Scheme, and revised by Amendment C61 to the Wellington Planning Scheme,

APPENDIX 15 LEGISLATION ADMINISTERED BY THE DEPARTMENT OF STATE DEVELOPMENT, BUSINESS AND INNOVATION

INNOVATION, SERVICES AND SMALL BUSINESS

Agent-General and Commissioners for Victoria Act 2007 – Except sections 4, 5, 6, 7 and 8, which are administered solely by the Premier. Section 13 is administered jointly and severally with the Premier.

ANZAC Day Act 1958 – Except sections 3 and 4A, which are administered by the Minister for Veterans Affairs. Section 4 is administered solely by the Minister for Sport and Recreation.

Film Act 2001 – Part 2. Parts 1, 4 and 5 are jointly administered with the Minister for the Arts. The Act is otherwise administered by the Minister for the Arts.

Public Holidays Act 1993

Retail Leases Act 2003

Shop Trading Reform Act 1996

Small Business Commissioner Act 2003

Summer Time Act 1972

EMPLOYMENT AND TRADE

Child Employment Act 2003

ENERGY AND RESOURCES

Electricity Industry Act 2000

Electricity Safety Act 1998

Energy Safe Victoria Act 2005

Extractive Industries (Lysterfield) Act 1986

Fuel Emergency Act 1977

Gas Industry Act 2001

Gas Safety Act 1997

Geothermal Energy Resources Act 2005

Greenhouse Gas Geological Sequestration Act 2008

Mineral Resources (Sustainable Development) Act 1990

Mines (Aluminium Agreement) Act 1961

National Electricity (Victoria) Act 2005

National Gas (Victoria) Act 2008

Nuclear Activities (Prohibitions) Act 1983

Offshore Petroleum and Greenhouse Gas Storage Act 2010

Petroleum Act 1998

Pipelines Act 2005

State Electricity Commission Act 1958 – section 107 (the Act is otherwise administered by the Treasurer)

Underseas Mineral Resources Act 1963


04 APPENDICES

whether or not that document remains incorporated into the Wellington Planning Scheme (except in so far as it relates to that land, this Part is jointly administered with the Minister for Planning)

> Part 3C in so far as it relates to the land along the Ninety Mile Beach that is shown either as ‘Areas within the Settlement Boundaries’ or ‘Areas outside the Settlement Boundaries’ on the plans forming part of the document entitled ‘Ninety Mile Beach Development and Subdivision Controls: The Honeysuckles to Paradise Beach’ and dated August 2007 (revised June 2009) that was incorporated into the Wellington Planning Scheme by Amendment C48 to the Wellington Planning Scheme, and revised by Amendment C61 to the Wellington Planning Scheme, whether or not that document remains incorporated into the Wellington Planning Scheme (in so far as it relates to that land, this Part is jointly administered with the Attorney-General)

The Act is otherwise administered by the Attorney-General, the Minister for Planning and the Treasurer

REGIONAL CITIES

Albury-Wodonga Agreement (Repeal) Act 2003

REGIONAL AND RURAL DEVELOPMENT

Regional Development Victoria Act 2002

Regional Growth Fund Act 2011

STATE DEVELOPMENT

Victorian Industry Participation Policy Act 2003 (administered jointly with the Minister for Manufacturing)

TECHNOLOGY

Howard Florey Institute of Experimental Physiology and Medicine (Repeal) Act 2007

Medical Research Institutes (Repeal) Act 2008

Section 31(2)(m) of the Road Management Act 2004. The Road Management Act 2004 is otherwise administered by the Minister for Roads.

TOURISM AND MAJOR EVENTS

Australian Grands Prix Act 1994

Chinatown Historic Precinct Act 1984 (jointly administered by the Minister for Planning)

Emerald Tourist Railway Act 1977

Melbourne Convention and Exhibition Trust Act 1996

Tourism Victoria Act 1992

APPENDIX 16 COMPLIANCE WITH THE PROTECTED DISCLOSURE ACT 2012 (FORMERLY, THE WHISTLEBLOWERS PROTECTION ACT 2001)

The Protected Disclosure Act 2012 encourages and assists people to make disclosures of improper conduct or detrimental action by public officers and public bodies. The Act provides protections to people who make disclosures in accordance with the legislation and establishes a system for the matters disclosed to be investigated and for rectifying action to be taken.

The Protected Disclosure Act 2012 commenced on 10 February 2013 when the Whistleblowers Protection Act 2001 was repealed (transitional provisions provide for matters arising under the former legislation to continue to be managed in accordance with that legislation). As the change of legislation occurred during the financial year 2012-13, this report complies with the requirements of both Acts for the relevant time periods.

The Department does not tolerate improper conduct by employees, nor the taking of reprisals against those who come forward to disclose such conduct. The Department is committed to ensuring transparency and accountability in its administrative and management practices, and supports the making of disclosures that reveal corrupt conduct, conduct involving a substantial mismanagement of public resources, or conduct involving a substantial risk to public health and safety or the environment.

The Department will take all reasonable steps to protect people who make such disclosures from any detrimental action in reprisal for making the disclosure.

Reporting procedures

The key contact for making disclosures of improper conduct or detrimental action by the Department or its employees is the Protected Disclosure Coordinator. Disclosures may also be made to:

> the Secretary of the Department

> a Protected Disclosure Officer

> a manager or supervisor of a person who chooses to make a disclosure

> a manager or supervisor of a person about whom a disclosure has been made

The Department’s Protected Disclosure Coordinator is:

Rosemary Martin Director, Legal, Audit and Risk Corporate Services and Communications Level 31, 121 Exhibition Street Melbourne VIC 3000 Phone: 9651 9862 Email: [email protected]

Alternatively, disclosures of improper conduct or detrimental action by the Department or its employees may also be made directly to the Independent Broad-based Anti-corruption Commission (IBAC).

The Independent Broad-based Anti-corruption Commission (IBAC) Victoria

Level 1, North Tower, 459 Collins Street Melbourne VIC 3001 Phone: 1300 735 135 Mail: IBAC, GPO Box 24234, Melbourne, VIC 3000 Internet: ibac.vic.gov.au Email: see the website above for the secure email disclosure process, which also provides for anonymous disclosures

Further information

The Protected Disclosure Policy and Procedures, which outline the system for reporting disclosures of improper conduct or detrimental action by the Department or its employees, are available on the Department’s website.


04 APPENDICES

DISCLOSURES UNDER THE PROTECTED DISCLOSURE ACT 2012 (THOSE MADE FROM 10 FEBRUARY 2013)

2012-13 2011-12

Number Number

The number of assessable disclosures made to the Department and notified to IBAC from 10 February – 30 June 2013:

Assessable disclosures 0 N/A

DISCLOSURES UNDER THE WHISTLEBLOWERS PROTECTION ACT 2001 (THOSE MADE UP TO 9 FEBRUARY 2013)

The archived procedures established under the Whistleblowers Protection Act 2001 are available upon request.

2012-13 2011-12

Number Number

The number and types of disclosures made to public bodies from 1 July 2012 – 9 February 2013:

Public interest disclosures 0 0

Protected disclosures 0 0

The number of disclosures referred during the year by the public body to the Ombudsman for determination as to whether they are public interest disclosures 0 0

The number and types of disclosed matters referred to the public body by the Ombudsman for investigation 0 0

The number and types of disclosures referred by the public body to the Ombudsman for investigation 0 0

The number and types of investigations taken over from the public body by the Ombudsman 0 0

The number of requests made by a whistleblower to the Ombudsman to take over an investigation by the public body 0 0

The number and types of disclosed matters that the public body has declined to investigate 0 0

The number and types of disclosed matters that were substantiated upon investigation and the action taken on completion of the investigation 0 0

Any recommendations made by the Ombudsman that relate to the public body: Recommendation regarding file security and management N/A N/A


04 APPENDICES

APPENDIX 17 BUDGET PORTFOLIO OUTCOMES

The Budget Portfolio Outcomes provide a comparison between the actual financial statements of all General Government entities within the portfolio and the forecasted information published in the Budget Papers.

The Budget Portfolio Outcomes comprise the comprehensive operating statement, balance sheet, statement of changes in equity and statement of cash flows.

The Budget Portfolio Outcomes have been prepared on a consolidated basis and include all General Government entities within the portfolio. Financial transactions and balances are classified into either Controlled or Administered, in accordance with the AASB 1049 Whole of Government and General Government Sector Financial Reporting and agreed with the Treasurer in the context of the Budget Papers.

The following Budget Portfolio Outcomes statements are not subject to audit by the Victorian Auditor-General’s Office and are not prepared on the same basis as the Department’s financial statements, as they include the consolidated financial information of the following entities:

Controlled

> The Department of State Development, Business and Innovation

> Victoria Trade and Investment Office

> The Office of the Small Business Commissioner

> Major Projects Victoria

> Tourism Victoria*

> Film Victoria*

* Prepare own financial statements.

Administered Items Statement:

The Department of State Development, Business and Innovation (Administered).


04 APPENDICES

COMPREHENSIVE OPERATING STATEMENT FOR THE YEAR ENDED 30 JUNE 2013

NOTES2012-13 ACTUAL

2012-13 PUBLISHED

BUDGET

2012-13 REVISED BUDGET VARIATION (a)

$’000 $’000 $’000 $’000 %

Output appropriations 1 438,132 496,558 467,528 (29,397) (7%)

Interest 2,413 2,500 2,300 113 5%

Grants 84,138 - 76,140 7,998 10%

Other income 2 103,127 118,940 89,386 13,742 13%

Total income from transactions 627,810 617,997 635,354 (7,544) (1%)

Employee benefits 94,345 96,512 94,891 (546) (1%)

Depreciation and amortisation 4,360 8,011 7,999 (3,639) (83%)

Interest expense 54 4 9 45 83%

Grants and other transfers 3 279,591 285,738 329,143 (49,552) (18%)

Capital asset charge 9,538 9,538 9,538 - 0%

Other operating expenses 4 235,446 221,235 204,904 30,542 13%

Total expenses from transactions 623,335 621,037 646,484 (23,149) (4%)

Net result from transactions (net operating balance)

(4,475) 3,040 11,130 (15,605) 349%

Net gain/(loss) on non-financial assets 3,910 - 1,376 2,534 65%

Net gain/(loss) on financial instruments and statutory receivables/payables

45 192 192 (147) (323%)

Other gains/(losses) from other economic flows (95) - - (95) 100%

Total other economic flows 3,861 192 1,568 2,293 59%

Net result (614) 3,232 12,698 (13,312) 2167%

Other (45) - - (45) 100%

Total other economic flows – Other non owner changes in equity (45) - - (45) 100%

Comprehensive Result (659) 3,232 12,698 (13,357) 2027%

(a) Variation between 2012-13 actual and 2012-13 revised budget.

(1) Variation in output appropriation relates to underspends across a range of programs which will be delivered in the following year.

(2) Variation in other income is mainly due to receipts in relation to Kew Residential Services Redevelopment.

(3) Variation relates to delays in milestone achievements by grant recipients, finalising grant contracts, and consequential delays in commencement of grant programs.

(4) Variation is mainly due to cost of sales for Kew Residential Services Redevelopment and in general operational expenditure.


04 APPENDICES

BALANCE SHEET AS AT 30 JUNE 2013

NOTES2012-13 ACTUAL

2012-13 PUBLISHED

BUDGET


$’000 $’000 $’000 $’000 %

Cash and deposits 1 77,813 55,175 58,257 19,555 25%

Receivables 121,447 106,643 104,590 16,857 14%

Other financial assets 38,232 50,800 44,643 (6,411) (17%)

Investments accounted for using the equity method 35,000 35,000 35,000 - 0%

Financial assets 272,492 247,617 242,490 30,001 11.0%

Inventories 2 23,646 42,305 34,759 (11,114) (47%)

Non-financial assets classified as held for sale including disposal group assets

23 33 12 11 48%

Property, plant and equipment 3 527,912 646,547 543,885 (15,974) (3%)

Intangible assets 1,544 - - 1,544 0%

Other 27,128 28,776 26,495 633 2%

Non-financial assets 580,252 717,661 605,152 (24,900) (4%)

Total assets 852,744 965,278 847,642 5,102 0.6%

Payables 4 59,334 38,913 44,747 14,586 25%

Borrowings 1,112 2,443 1,080 32 3%

Provisions 24,555 25,187 25,519 (964) (4%)

Liabilities 85,001 66,543 71,346 13,655 16%

Total liabilities 85,001 66,543 71,346 13,655 16%

Net assets 767,743 898,735 776,296 (8,553) (1%)

Accumulated surplus/(deficit) 219,463 225,351 206,106 13,356 6%

Reserves 30,969 31,779 30,969 - (0%)

Contributed capital 517,311 641,605 539,220 (21,909) (4%)

Equity 767,743 898,735 776,296 (8,553) (1%)

Net worth 767,743 898,735 776,296 (8,553) (1%)


(1) Variation is mainly due to cash and deposits held in trust for Major Projects Victoria clients.

(2) Variation is due to higher than expected sales in relation to Kew Residential Services Redevelopment.

(3) Variation is mainly attributable to transfer of assets to other Government Entities.

(4) Variation in payables is due to a higher level of accruals at 30 June 2013 than estimated.


04 APPENDICES

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2013

NOTES2012-13 ACTUAL

2012-13 PUBLISHED

BUDGET


$’000 $’000 $’000 $’000 %

Receipts from Government 1 438,131 496,557 467,528 (29,397) (7%)

Receipts from other entities 79,502 - 76,340 3,162 4%

Goods and Services Tax recovered from the ATO 872 - 239 633 73%

Interest received 2,443 2,500 2,300 143 6%

Other receipts 2 99,970 118,940 89,386 10,584 11%

Total receipts 620,918 617,997 635,793 (14,875) (2%)

Payments of grants and other transfers 3 (279,591) (285,738) (329,143) 49,552 (18%)

Payments to suppliers and employees 4 (324,162) (317,706) (300,278) (23,884) 7%

Goods and Services Tax paid to the ATO (436) - - (436) 100%

Capital asset charge (9,538) (9,538) (9,538) - 0%

Interest and other costs of finance (54) - (5) (49) 91%

Total payments (613,781) (612,982) (638,964) 25,184 (4%)

Net cash flows from /(used in) operating activities 7,138 5,015 (3,171) 10,309 144%

Net investment (14,727) (9,507) (507) (14,220) 97%

Payments for non-financial assets (113,838) (192,359) (130,048) 16,210 (14%)

Proceeds from sale of non-financial assets 365 - - 365 100%

Net loans to other parties (888) (3,291) (3,291) 2,403 (271%)

Cash flows from investing activities (129,088) (205,157) (133,846) 4,758 (4%)

Net cash flows from /(used in) investing activities (129,088) (205,157) (133,846) 4,758 (4%)

Owner contributions by State Government 118,021 194,043 130,268 (12,247) (10%)

Net borrowings 19,833 3,099 3,099 16,734 84%

Cash flows from financing activities 137,854 197,142 133,367 4,487 3%

Net cash flows from /(used in) financing activities 137,854 197,142 133,367 4,487 3%

Net increase (decrease) in cash and cash equivalents 15,904 (3,000) (3,650) 19,554 123%

Cash and cash equivalents at the beginning of the financial year

61,859 61,859 61,859 - 0%

Cash and cash equivalents at the end of the financial year 77,763 58,859 58,209 19,554 25%


(1) Variation relates to lower revenue drawn down across a range of programs which will be delivered in 2013-14.

(2) Variation relates to increase in other receipts; mainly in relation to Kew Residential Services Redevelopment.

(3) Variation relates to delays in milestone achievements by grant recipients, finalising grant contracts, and consequential delays in commencement of grant programs.

(4) Variation relates to increase in cost of sales for Kew Residential Services Redevelopment and in general operational expenditure.


04 APPENDICES

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2013

NOTES2012-13 ACTUAL

2012-13 PUBLISHED

BUDGET

2012-13 REVISED BUDGET VARIATION

$’000 $’000 $’000 $’000 %

Other (45) - -

Net result for the period (614) 3,232 12,698 (13,312) (105%)

Comprehensive result (659) 3,232 12,698 (13,357) (105%)


04 APPENDICES

ADMINISTERED ITEMS STATEMENT FOR THE YEAR ENDED 30 JUNE 2013

NOTES2012-13 ACTUAL

2012-13 PUBLISHED

BUDGET


$’000 $’000 $’000 $’000 %

Output appropriations 59,000 54,000 59,000 - 0%

Interest 16,837 14,679 14,679 2,158 13%

Sales of goods and services 1,036 1,200 1,200 (164) (16%)

Grants 1,078 5,000 5,000 (3,922) (364%)

Other income 1 18,148 2,050 2,050 16,098 89%

Total income from transactions 96,099 76,929 81,929 14,170 15%

Interest expense 40,610 32,000 37,000 3,610 9%

Grants and other transfers 4,860 8,000 8,000 (3,140) (65%)

Payments into consolidated fund 2 43,254 11,633 11,633 31,621 73%

Other operating expenses 3 13,530 - - 13,530 100%

Total expenses from transactions 102,254 51,633 56,633 45,621 45%

Income Less Expenses (6,155) 25,296 25,296 (31,451) 511%

Total other economic flows 13,259 5,183 5,183 8,076 61%

Total other economic flows – Other non-owner changes in equity - - - - 0%

Net result 7,104 30,479 30,479 (23,375) (329%)

Cash and deposits (101) (103) (155) 54 (53%)

Receivables 291,936 342,459 301,483 (9,547) (3%)

Total Administered assets 291,835 342,356 301,329 (9,494) (3%)

Payables 86,954 87,478 87,215 (261) (0%)

Borrowings 4 461,103 434,416 446,960 14,143 3%

Total Administered liabilities 548,056 521,894 534,175 13,881 3%

Net assets (256,221) (179,538) (232,846) (23,375) 9%

Accumulated surplus/(deficit) (171,536) (94,853) (148,161) (23,375) 14%

Contributed capital (84,685) (84,685) (84,685) - 0%

Total equity (256,221) (179,538) (232,846) (23,375) 9%


(1) Relates mainly to income from the Kew Residential Services Redevelopment land sales.

(2) Relates to monies from Kew Residential Services Redevelopment and Parkville Gardens project.

(3) Relates mainly to maintenance costs for the Melbourne Convention Centre not budgeted.

(4) Relates primarily to lower than budgeted loan repayments (interest and principal) by Melbourne Convention Exhibition Trust during 2012-13.


04 APPENDICES

APPENDIX 18 OUTPUT GROUPS

Output Group Performance Indicator Unit of Measure 2012-13 Target 2012-13 Achieved Output Variance


Quantity Businesses assisted with skills needs number 1,200 1,347 12%

Target exceeded due to higher than anticipated demand.

Government Youth Employment Scheme – traineeships commenced number 450 341 -24%

The target was not achieved due to lower than anticipated placement of trainees as a result of structural changes occurring in the VPS.

Quality Proportion of skilled migrants working in nominated field per cent 70 67 -4%

Skilled Migration Victoria – client satisfaction with services provided per cent 85 85 0%

Victoria represented in major industrial relations cases and inquiries per cent 100 100 0%

Timeliness Skilled Migration Victoria – average processing time for state sponsorship applications working days 28 28 0%

Cost Total Output Cost $ million 15.4 16.4 6%


Quantity International marketing campaigns to position Victoria globally number 4 4 0%

Number of domestic overnight visitors number (million) 15.9 17.8 12%

Target exceeded by 1.9 million domestic overnight visitors due to higher than anticipated growth from intrastate travel. Latest data available is year ending March 2013.

Number of visitors (international) number (million) 1.6 1.9 19%

Target exceeded due to higher than anticipated visitors from China and other Asian growth markets.

Proportion of all international students studying in Victoria per cent 28 28.9 3%

Visitor Expenditure: domestic $ billion 12.1 14.8 22%

Target exceeded due to higher than expected yield from daytrip visitors. Latest data available is year ending March 2013.

Visitor Expenditure: international $ billion 3.8 4.5 18%

Target exceeded due to higher than anticipated yield from China and other Asian growth markets.

Visitor Expenditure: regional Victoria (domestic) $ billion 5.9 7.0 19%

Target exceeded by $1.1 billion due to higher than anticipated yield, particularly from domestic daytrip visitors. Latest data available is year ending March 2013.

Visitor Expenditure: regional Victoria (international) $ million 290 307 6%

Target exceeded by $17 million due to higher than anticipated visitor numbers and yield from Asian markets. Latest data available is year ending March 2013

Quality Value of media coverage generated: domestic $ million 20 20.5 3%

Value of media coverage generated: International $ million 40 44.5 11%

High value media was achieved for events such as the Ellen Show (USA), Elle magazine (China) and Conde Nast Traveller (USA).

Victoria’s share of domestics tourism advertising awareness among target markets: intrastate

per cent 16 16 0%

Victoria’s share of domestics tourism advertising awareness among target markets: interstate

per cent 25 26 4%

Cost Total Output Cost $ million 81.8 161.4 97%

The additional expenditure in the Tourism Output relates to funding for Major Events activities including payments to the Australian Grand Prix Corporation, Australian Open Tennis, L’Oreal Fashion Festival and the Melbourne Cup Carnival.


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Quantity Additional employment from production supported by Film Victoria number 1,800 5,810 223%

Target has been exceeded due to the combined effects of the reallocation of funds to production investment; a higher proportion of large budget television series that have higher employment opportunities than historical activity; and flow-ons from projects funded in previous years commencing production in 2012-13.

Average number of monthly visits to vic.gov.au number 420,000 377,906 -10%

The new vic.gov.au website launched in March 2013. The lower than expected result reflects the websites redesign and elimination of content sourced from elsewhere in Government.

Businesses provided with research and development assistance number 180 305 69%

Greater than predicted demand for the Innovation and Technology Voucher programs has resulted in a higher than expected result.

Companies linked to business networks number 300 974 225%

Target exceeded primarily due to the new Manufacturing Productivity Networks Program generating a high number of workshop-style projects with high participation rates.

Operational Infrastructure Support grants under management number 13 13 0%

Value of film, television and digital media production supported by Film Victoria production

$ million 57 141.6 148%

Target exceeded due to the combined effects of the reallocation of funds to production investment; a higher proportion of large budget television series; and flow-ons from projects funded in previous years commencing production in 2012-13.

Quality Customer satisfaction with information services from Information Victoria per cent 90 90 0%

Percentage of funded science projects that are industry led per cent 60 60 0%

Cost Total Output Cost $ million 193.7 144.1 -26%

The underspend in the Innovation Output primarily relates to the Victorian Innovation Statement and World Class research and development programs. A request has been made to carryover the underspend into 2013-14.


Investment Attraction and Facilitation

Quantity Jobs derived from investments facilitated number 4,250 4,737 11%

Target exceeded due to a number of employment intensive facilitated investment projects, including in regional Victoria.

Jobs derived from investment facilitated in regional Victoria number 855 1,937 127%

Target exceeded due to a number of employment intensive facilitated investment projects, including in regional Victoria.

New investments facilitated $ million 1,440 2,222 54%

Higher than anticipated investment includes a high-value, capital intensive project in the energy sector.

New investments facilitated in regional Victoria $ million 504 638 27%

Higher than anticipated investment includes a high-value, capital intensive project in the energy sector.

Number of major research and evaluation projects completed number 16 16 0%

Quality Delivery of nominated Major Projects Victoria projects complies with agreed plans and contractual frameworks

per cent 100 N/A N/A

This target was discontinued and has been replaced by new measures that better reflect performance.

Management of Major Projects Victoria projects complies with contracted scope.

number NA 6:7 NA

Six out of seven projects complied with contracted scope. There was a material scope change for the Kew Residential Services project.


04 APPENDICES


Investment Attraction and Facilitation

Management of Major Projects Victoria projects complies with contracted cost number NA 6:7 NA

Six out of seven projects complied with contracted cost. In 2012-13 the total revenue expected over the life of the Kew Residential Services project was reassessed. This figure has increased by more than five per cent compared with the total revenue for the project predicted at the start of the financial year. None of this additional revenue has materialised in 2012-13.

Management of Major Projects Victoria projects complies with contracted time number NA 5:7 NA

Five out of seven projects complied with contracted time. The practical completion of the Melbourne Park Redevelopment – Eastern Plaza was delivered 102 days earlier than the contracted time. The Melbourne Market Relocation Trading Floor practical completion date was moved back 87 days due to weather delays.


The underspend in the Investment Attraction, Facilitation and Major Projects Output is primarily due to underspends in the Industry Transition Fund and the Investment Support Program. A request has been made to carryover the underspends into 2013-14.


Quantity Businesses participating in export programs number 2,400 2,685 12%

Target exceeded due to strong participation in Trade Missions, in particular the number of companies participating in the China and South-East Asian Super Trade Missions.

Value of exports facilitated and imports replaced $ million 1,000 1,551 55%

Strong outcomes from all Trade Missions, particularly the China Super Trade Mission resulted in targets being significantly exceeded.

New exports facilitated in regional Victoria $ million 175 308 76%

Export outcomes were greater than expected, with strong Trade Missions outcomes contributing to this result.

Quality Client satisfaction with export assistance offered per cent 85 95.8 13%

The success of Trade Missions contributed to the higher than expected satisfaction rating.



Quantity Number of business interactions with services provided by Business Victoria Online

number 495,000 736,000 49%

Target exceeded due to the increasing demand from mobile devices.

Number of businesses engaged with the Department number 12,000 12,704 6%

Registration for online services number 90,000 91,000 1%

Quality Client satisfaction of small business information, referral, mentoring service and business programs

per cent 90 93.4 4%

Client satisfaction with Victorian Small Business Commissioner mediation service per cent 80 94.3 18%

The high level of client satisfaction achieved shows the participants’ recognition of the value of the high-quality, low-cost and timely dispute resolution process provided by the Victorian Small Business Commissioner.

Proportion of business disputes presented to the Small Business Commissioner successfully mediated

per cent 75 83.1 11%

Target exceeded due to better targeting of resources.



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APPENDIX 19 SUMMARY OF ADDITIONAL DEPARTMENTAL INFORMATION AVAILABLE UPON REQUEST

In compliance with the requirements of the Standing Directions of the Minister for Finance, details in respect to the items listed below have been retained by the Department, and are available to the relevant ministers, Members of Parliament and the public on request (subject to the Freedom of Information requirements, if applicable):

1 A statement that declaration of pecuniary interests have been duly completed by relevant officers of the Department

2 Details of shares held by senior officers as nominee or held beneficially in a statutory authority or subsidiary

3 Details of publications produced by the Department about the activities of the Department and where they can be obtained

4 Details of changes in prices, fees, charges, rates and levies charged by the Department for its services, including services that are administered

5 Details of any major external reviews carried out in respect of the operation of the Department

6 Details of any other research and developmental activities undertaken by the Department that are not otherwise covered in the report of operations or in a document that contains the financial statement and report of operations

7 Details of overseas visits undertaken, including a summary of the objectives and outcomes of each visit

8 Details of major promotional, public relations and marketing activities undertaken by the Department to develop community awareness of the services provided by the Department

9 Details of assessments and measures undertaken to improve the occupational health and safety of employees, not otherwise detailed in the report of operations

10 A general statement on industrial relations within the Department and details of time lost through industrial accidents and disputes, which are not otherwise detailed in the report of operations

11 A list of major committees sponsored by the Department, the purposes of each committee and the extent to which the purposes have been achieved

12 Details of government advertising expenditure (campaigns with a media spend of $150,000 or greater)

13 The information is available upon request from:

Rosemary Martin Director of Legal, Audit and Risk Corporate Services and Communications Department of State Development, Business and Innovation Level 31, 121 Exhibition Street Melbourne VIC 3000 Tel: 03 9651 9862 Email: [email protected]


04 APPENDICES

Geelong – VGBO 69 Moorabool Street Geelong VIC 3220 Tel: (+61 3) 5223 2104 Fax: (+61 3) 5229 9503

Warrnambool – VGBO South-West Tafe Old Police Station, Giles Street P.O. Box 674 Warrnambool VIC 3280 Tel: (+61 3) 5561 4135 Fax: (+61 3) 5561 3851

Gippsland Region

Email: [email protected]

Traralgon – VGBO 33 Breed Street Traralgon VIC 3844 Tel: (+61 3) 5174 9233 Fax: (+61 3) 5174 7845

Sale – VGBO Port of Sale Building Level 1/66 Foster Street Sale VIC 3853 Tel: (+61 3) 5142 0200 Fax: (+61 3) 5142 0201

Grampians Region


Ballarat – VGBO 111 Armstrong Street North Ballarat VIC 3350 Tel: (+61 3) 5327 2865 Fax: (+61 3) 5327 2830

Horsham – VGBO Wimmera Business Centre 62 Darlot Street Horsham VIC 3400 Tel: (+61 3) 5381 2762 Fax: (+61 3) 5381 2514

VICTORIAN GOVERNMENT BUSINESS OFFICES (VGBOS)

Metropolitan VGBOs

CBD – Inner Melbourne Region Level 35, 121 Exhibition Street Melbourne VIC 3000 Tel: (+61 3) 9651 9239 Fax: (+61 3) 9651 9505 Website: dsdbi.vic.gov.au Email: [email protected]

Bundoora – Northern Metropolitan Region University Hill Suite 16, Level 1 20 Enterprise Drive Bundoora VIC 3083 Tel: (+61 3) 9935 0600 Fax: (+61 3) 9466 7367 Email: [email protected]

Ringwood – Eastern Metropolitan Region Suite 11, Level 1 12 Maroondah Highway Ringwood VIC 3134 Tel: (+61 3) 9938 0150 Fax: (+61 3) 9879 3180 Email: [email protected]

Dandenong – Southern Metropolitan Region Level 6, 165-169 Thomas Street Dandenong VIC 3175 Tel: (+61 3) 9938 0100 Fax: (+61 3) 9794 5644 Email: [email protected]

Tottenham – Western Metropolitan Region Level 1, 67 Ashley Street Tottenham VIC 3012 Tel: (+61 3) 9334 1300 Fax: (+61 3) 9334 1301 Email: [email protected]

Regional VGBOs

Barwon South-West Region Email: [email protected]

APPENDIX 20 CONTACT DETAILS

mailto:[email protected]











04 APPENDICES

Chicago

USA 161 N Clarke St Ste 4700 Chicago IL 60601-3201 United States of America Tel: (+1 312) 523 2116 Fax: (+1 312) 523 2001 Email: [email protected]

New York

USA 330 Madison Ave FL6 New York NY 10017-5041 United States of America Tel: (+1 212) 573 0955 Fax: (+1 212) 573 0957 Email: [email protected]

Washington

USA 2011 Crystal Drive Fourth Floor #458 Arlington VA 22202-3709 United States of America Tel: (+1 703) 682 6830

Shanghai

People’s Republic of China Suite 620, Shanghai Center 1376 West Nanjing Road Shanghai 200040 China Tel: (+86 21) 6279 8681 Fax: (+86 21) 6279 8685 Email: [email protected]

Beijing

People’s Republic of China Unit 2, Level 2, Office Tower C2 The Towers, Oriental Plaza No. 1 East Chang An Avenue Dong Cheng District, Beijing 100738 China Tel: (+86 10) 8515 3166 Fax: (+86 10) 8518 2080 Email: [email protected]

Hume Region


Wangaratta – VGBO Level 1, 62 Ovens Street Wangaratta VIC 3677 P.O. BOX 588 Wangaratta, Vic, 3676 Tel: (+61 3) 5722 9649 Fax: (+61 3) 5722 7109

Shepparton – VGBO 79A Wyndham Street Shepparton VIC 3632 Tel: (+61 3) 5895 4100 Fax: (+61 3) 5822 2554

Wodonga – VGBO Level 2, 111-113 Hume Street Wodonga VIC 3689 Tel: (+61) 02 6056 2166 Fax: (+61) 02 6056 2334

Loddon Mallee Region


Bendigo – VGBO 56-60 King Street Bendigo VIC 3550 P.O. Box 522 Bendigo VIC 3552 Tel: (+61 3) 4433 8023 Fax: (+61 3) 4433 8099

Mildura – VGBO 131 Langtree Avenue Mildura VIC 3500 Tel: (+61 3) 5051 2000 Fax: (+61 3) 5051 2020

VICTORIAN GOVERNMENT BUSINESS OFFICES OVERSEAS

San Francisco

USA 575 Market Street Suite 375 San Francisco CA 94105 United States of America Tel: (+1 415) 856 0552 Fax: (+1 415) 856 0517 Email: [email protected]









04 APPENDICES

Bangalore

India Level 1, Pride Elite Building 10 Museum Road Bangalore 560 001 India Tel: (+91 80) 4122 7560 Fax: (+91 80) 4122 7569 Email: [email protected]

Mumbai

India Level 8, 227 Backbay Reclamation Nariman Bhavan, Nariman Point Mumbai 400021 India Tel: (+91 22) 6142 4300 Email: [email protected]

London

United Kingdom Victoria House, Melbourne Place, Strand London WC2B 4LG United Kingdom Tel: (+44 20) 7836 2656 Fax: (+44 20) 7240 6025 Email: [email protected]

Frankfurt

Germany Mainzer Landstrasse 49 D-60329 Frankfurt Germany Tel: (+49 69) 308 55070 Fax: (+49 69) 668 07466 Email: [email protected]

Dubai

United Arab Emirates and North Africa Office 111, First Floor Emarat Atrium Sheikh Zayed Road PO Box 58004, Dubai United Arab Emirates Tel: (+97 14) 321 2600 Fax: (+97 14) 321 2700 Email: [email protected]

Chengdu

People’s Republic of China Room 1738, Level 17, Raffles City Tower 2, No. 3 Section 4, South Renmin Road, Wuhou District, Chengdu 610041 China Tel: (+86 28) 6511 8108 Fax: (+86 28) 6511 8107

Nanjing

People’s Republic of China Room 1164, 11th Floor World Trade Centre, Jinling Hotel 2 Hanzhong Road, Nanjing 210005 China Tel: (+86 25) 8470 1231 Fax: (+86 25) 8470 9821 Email: [email protected]

Hong Kong

People’s Republic of China 2108 Harbour Centre 25 Harbour Road, Wan Chai Hong Kong Tel: (+852) 2587 1133 Fax: (+852) 2802 9675 Email: [email protected]

Tokyo

Japan Level 13, Fukoku Seimei Building 2-2-2 Uchisaiwai-cho, Chiyoda-ku Tokyo 100-0011 Japan Tel: (+81 3) 3519 3371 Fax: (+81 3) 3519 3375 Email: [email protected]

Kuala Lumpur

Malaysia Suite 23.1, Level 23 Menara IMC 8 Jalan Sultan Ismail 50250 Kuala Lumpur Malaysia Tel: (+60 3) 2055 1502 Fax: (+60 3) 2055 1489 Email: [email protected]











04 APPENDICES

The Annual Report of the Department of State Development, Business and Innovation is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identification of the Department’s compliance with statutory disclosure requirements.

Legislation Requirement Page

REPORT OF OPERATIONS – FRD GUIDANCE

Charter and purpose

FRD 22C Manner of establishment and the relevant ministers 5-7

FRD 22C Objectives, functions, powers and duties 40

FRD 22C Nature and range of services provided 5

Management and structure

FRD 22C Organisational structure 6-7

Financial and other information

FRD 8B Budget portfolio outcomes 160-5

FRD 10 Disclosure index 173-4

FRD 12A Disclosure of major contracts 128

FRD 15B Executive officer disclosures 128

FRD 22C, SD 4.2(k)

Operational and budgetary objectives and performance against objectives 166-8

FRD 22C Employment and conduct principles 125

FRD 22C Occupational health and safety policy 123

FRD 22C Summary of the financial results for the year 137

FRD 22C Significant changes in financial position during the year 165

FRD 22C Major changes or factors affecting performance 5

FRD 22C Subsequent events n/a

FRD 22C Application and operation of Freedom of Information Act 1982 129

FRD 22C Compliance with building and maintenance provisions of Building Act 1993 130

FRD 22C Statement on National Competition Policy 128

FRD 22C Application and operation of the Whistleblowers Protection Act 2001 158

FRD 22C Details of consultancies over $10,000 111

FRD 22C Details of consultancies under $10,000 111

FRD 22C Statement of availability of other information 169

FRD 24C Reporting of office-based environmental impacts 130

FRD 25A Victorian Industry Participation Policy disclosures 130

FRD 29 Workforce Data disclosures 108

SD 4.5.5 Risk management compliance attestation 129

SD 4.5.5.1 Ministerial Standing Direction 4.5.5.1 Compliance Attestation 129

SD 4.2(g) Specific information requirements 3-29

SD 4.2(j) Sign-off requirements 4, 128

APPENDIX 21 DISCLOSURE INDEX


04 APPENDICES

Legislation Requirement Page

FINANCIAL REPORT

Financial statements required under Part 7 of the FMA

SD4.2(a) Statement of changes in equity 35

SD4.2(b) Operating statement 33

SD4.2(b) Balance sheet 34

SD4.2(b) Cash flow statement 36

Other requirements under Standing Directions 4.2

SD4.2(c) Compliance with Australian accounting standards and other authoritative pronouncements 37

SD4.2(c) Compliance with Ministerial Directions 103

SD4.2(d) Rounding of amounts 38

SD4.2(c) Accountable officer’s declaration 103

SD4.2(f) Compliance with Model Financial Report 37

Other disclosures as required by FRDs in notes to the financial statements

FRD 9A Departmental disclosure of administered assets and liabilities 165

FRD 11 Disclosure of ex gratia payments 91

FRD 13 Disclosure of parliamentary appropriations 90-1

FRD 17A Long service leave wage inflation and discount rates 51, 77

FRD 21B Disclosures of Responsible Persons, Executive Officers and Other Personnel (Contractors with Significant Management Responsibilities) in the Financial Report 108-10

FRD 26A Accounting for Vic-Fleet motor vehicle lease arrangements on or after February 2004 79

FRD 102 Inventories 48, 69

FRD 103D Non-current physical assets 48

FRD 104 Foreign currency 52

FRD 106A Borrowing costs 50

FRD 106 Impairment of assets 46

FRD 109 Intangible assets 75

FRD 107 Investment properties 101

FRD 110 Cash flow statements 36

FRD 112C Defined benefit superannuation obligations 42

FRD 113 Investments in subsidiaries, jointly controlled entities and associates 74

FRD 114A Financial Instruments – General Government Entities and public non-financial corporations 39, 110

FRD 119 Contributions by owners 42

FRD 120G Accounting and reporting pronouncements applicable to 2012-13 reporting period 53-7

FRD 121 Infrastructure Assets 70-3

Legislation

Freedom of Information Act 1982 129

Building Act 1983 130

Whistleblowers Protection Act 2001 158

Protected Disclosures Act 2012 158

Victorian Industry Participation Policy Act 2003 130

Financial Management Act 1994 37

Multicultural Victoria Act 2004 126

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