trust for nature annual report 2016-17 · 1 speech to communicate conference: connecting with...

Trust for NatureAnnual Report 2016-17

Recognition of Traditional OwnersTrust for Nature recognises the continuing spiritual and cultural connection of Traditional Owners to Victoria’s land, wildlife, freshwater and saltwater environments. Trust for Nature shares with Victorian Traditional Owners a deep appreciation for native wildlife and habitats on both public and private land and in aquatic environments. Trust for Nature recognises that all Victorians share in the benefits of the custodianship and caring for country that Traditional Owners have practised for centuries. The Trust is committed to assisting Traditional Owners to conserve, restore where possible and protect natural environments, wildlife and cultural heritage values.

About Trust for NatureWe are one of Australia’s oldest conservation organisations, established in 1972 under an Act of Parliament in Victoria. Our mission is to work collaboratively to protect nature on private land so that Victoria’s most threatened plants and wildlife are conserved for future generations. We hold a unique power in Victoria, enshrined in legislation, to protect private land by applying conservation covenants to property titles in agreement with sympathetic landholders. So far we have secured nearly 100,000 hectares of native habitat through a mix of conservation covenants and nature reserves. We also work collaboratively on conservation projects with government, communities, other organisations and partners who share our commitment to Victoria’s environment.

Published by Trust for Nature (Victoria), Melbourne, September 2017. © State of Victoria, Trust for Nature 2017. This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968. ISSN: 1838-9732

An electronic copy of this document is available online at www.trustfornature.org.au

Conservation covenants

Trust for Nature properties/reserves.

Land protected in Victoria by conservation covenants and Trust for Nature reserves

Cover image: Three generations of the Harper family look to the future at Uambi, part of which was donated as a conservation reserve to Trust for Nature in 1989 by John and Joan Harper. The largest intact remnant of bushland in Heathmont, Uambi is used as an environmental education site by primary, secondary and university students. The Harper family remain actively involved on the reserve’s voluntary committee of management. Pictured are David, William, Georgia and Amelia.

MAJOR ACHIEVEMENTS 2016-17

CONTENTSChairman and CEO report ...........................................2How we operate .............................................................4Key services ....................................................................6Operational objectives and outcomes ......................9Conservation achievements ....................................11Community engagement ..........................................16Partners and volunteers ............................................19

Thank you to our donors ..........................................22Financial overview .....................................................23Board and employees ...............................................25Organisational chart ..................................................29Statutory compliance ................................................30Disclosure index..........................................................34Financial statements .................................................35

90ecological surveys on

covenanted properties and Trust for Nature

reserves

Worked on privately and publicly funded projects with

conservation partners to protect threatened species

like the Helmeted Honeyeater, Southern

Bent-wing bat, Plains-wanderer and New Holland Mouse

Co-hosted major national and regional events

such as the National Private Land Conservation Conference, the

Women in Conservation Breakfast, North East Environment Forum

and Wimmera Biodiversity Seminar

34conservation covenants

registered

1,802more hectares of

Victoria’s native vegetation protected

Total area of Victoria protected under covenant and

Trust for Nature owned reserves is now99,333

hectares

126conservation

management plans for covenanted

properties

Helped develop the Victorian

Government’s long-term plan, Protecting Victoria’s Environment

– Biodiversity 2037

Feral predator control over49,000

hectares81field days and workshops across Victoria, including

Spring Into Nature community events

Trust for Nature Annual Report 2016-17 1

CHAIRMAN AND CEO REPORT

Trust for Nature has enjoyed a year as rich and varied as the landscapes of Victoria.We are pleased to report that a further 1,802 hectares of native habitat have been protected in 2016-17 through conservation agreements we have made with private landholders. This brings the total land safeguarded by covenants and Trust for Nature reserves in Victoria to nearly 100,000 hectares.

Our leadership on private land conservation has been widely recognised this year. We have worked in partnership with more than 120 organisations, sharing our expertise with the Australian and Victorian Governments, Catchment Management Authorities, fellow conservation organisations, community groups and businesses.

We are proud to have contributed to the development of the Victorian Government’s long-term plan, Protecting Victoria’s Environment – Biodiversity 2037. One of our staff was seconded to the Department of Environment, Land, Water and Planning to help prepare the final plan and we will be at the forefront of its implementation.

Planning for the future also necessitates a focus on climate change. With support from the Victorian Government’s Sustainability Fund, Trust for Nature is refining its conservation planning approach to incorporate climate-change adaptation and mitigation considerations. We look forward to continuing this important work in 2017-18. Climate change was also a focus of our policy work this year, with Trust for Nature making a submission to the Australian Government’s review of climate change policy.

As part of the Trust’s wider commitment to a more sustainable world, we upgraded the solar power system at Neds Corner Station, our iconic conservation reserve in the Mallee. It now comprises 55 panels and battery storage to power the homestead and other buildings with renewable energy.

At a national level, Trust for Nature has been prominent. We hosted the National Private Land Conservation Conference, in partnership with the Australian Land Conservation Alliance and National Australia Bank. The event featured keynote speakers from the United States and New Zealand as well as a Trust for Nature workshop on landholder engagement.

Meanwhile, we participated in the International Union for the Conservation of Nature’s forum on setting directions for terrestrial biodiversity conservation in Australia. We also contributed to the biennial Collaborative Australian Protected Area Database which helps inform national analyses of progress towards formal protection of Australia’s biodiversity under national and international commitments.

At a grassroots level, our regional teams have had a busy and productive 12 months supporting landholders and working on 51 conservation projects funded by philanthropic organisations, the Australian Government and the Victorian Government. Our teams delivered feral predator control across 49,000 hectares, controlled weeds across 9,900 hectares, completed 90 ecological surveys and installed 21 kilometres of fencing. In addition, Trust for Nature staff developed 126 conservation management plans for covenanted properties and conducted 215 stewardship visits.

The rewards of our activity include unexpected encounters with rare or threatened species. This year we were excited to discover a population of the nationally threatened Growling Grass Frog on a wetland at Neds Corner Station. The frog’s survival at Neds shows the benefit of removal of stock grazing and increases in environmental watering at the reserve. Another surprise find at Neds this year was what appears to be a new daisy species for Victoria - Brachyscome dichromosomatica, emphasising the significance of this 30,000 hectare reserve for conservation of the state’s flora and fauna.

www.trustfornature.org.au2

Elsewhere, the Trust collaborated with conservation partners to help secure, maintain or improve habitat for a number of threatened species including the Helmeted Honeyeater, Southern Bent-wing bat, Plains-wanderer, New Holland Mouse, Gaping Leek-orchid and Winged Peppercress. Some of these species are critically endangered and will be lost forever without ongoing attention.

As Sir David Attenborough has said: “No one will protect what they don’t care about and no one will care about what they have never experienced.”1 That is why community engagement forms a significant part of our conservation mission at Trust for Nature.

In 2016-17, we hosted several school and university educational days at covenanted properties and reserves around the state, including an event with two primary schools at Bank Australia’s conservation reserve in the Wimmera. This complements the work we are doing on teaching resources for VCE Outdoor Education and Environmental Sciences, paving the way for future leaders in conservation.

We continued to reach out to new audiences through our growing social media presence and held more than 80 field days and workshops, including our ever-popular Spring Into Nature events. We partnered again with Bush Heritage Australia to host the annual Women in Conservation Breakfast, held in Melbourne on 2 March 2017. More than 460 attendees heard from keynote speaker Dr Anne Poelina, a Nyikina Traditional Owner from the Lower Fitzroy River in Western Australia and a Councillor with the Australian Conservation Foundation.

Trust for Nature recognises that all Victorians share in the benefits of the custodianship and caring for country that Traditional Owners have practised for centuries. This is reflected in our Statement of Intent and Commitment to Victorian Traditional Owner Groups formally adopted in 2017 by our Board of Trustees.

1 Speech to Communicate Conference: Connecting With Nature, Bristol, November 2010

Trust for Nature participated in 80 engagement activities with First Nations peoples throughout 2016-17 including new partnership projects, spending time together on country, on-ground land management actions, joint funding applications, and sharing knowledge at meetings, community events, workshops and presentations.

Finally, a few words of thanks, celebration and reflection. We are indebted to our supporters who give so generously as financial donors and in kind as volunteers; without them, Victoria’s environment would be much poorer.

The dedication of the voluntary committees of management who care for our reserves is a case in point. For example, at Snape Reserve near Dimboola, 19 committee members donated more than 2,500 hours last year towards threat management, habitat improvement and flora and fauna assessments. Thanks to the Biophilia Foundation, we aim to provide additional assistance to reserve committees in 2017-18.

We were also heartened by the 2017 Queen’s Birthday Honours, which saw an OAM awarded to one of our Trustees, Dr Greg Moore, for his services to arboriculture and an AM awarded to our Senior Policy and Research Advisor, Fiona Smith, for her external work as a human rights and social justice advocate.

And, like many Victorians, we were saddened by the untimely death of John Clarke. While best known for his brilliant satire, John was an active supporter behind the scenes of private land conservation and the work done by Trust for Nature. We remain inspired by his vision for a better, greener Victoria. We welcome everyone to join us in making this a lasting legacy for generations to come.

Max Ervin Victoria Marles Chairman Chief Executive Officer

22 August 2017 22 August 2017


HOW WE OPERATEManner of Establishment and Responsible MinisterTrust for Nature operates under the Victorian Conservation Trust Act 1972. The responsible Minister for the period from 1 July 2016 to 30 June 2017 was the Hon Lily D’Ambrosio MP, Minister for Energy, Environment and Climate Change.

The Victorian Conservation Trust Act 1972 and the Trust’s key services

The objects of the Trust as set out in the Act are:

• For public scientific and public educational purposes encourage and assist in: › The preservation of areas which are:

» ecologically significant » of natural interest or beauty; or » of historical interest

› The conservation of wildlife and native plants; and › The conservation and creation of areas for scientific study relating to the above.

• Encourage and assist in the conservation and creation of areas of natural beauty or interest for use by the public for the purposes of enjoyment, recreation and education.

To meet these objects, Trust for Nature has the power to:

• Purchase, sell, transfer and hold land• Surrender land to the Crown• Enter into covenants with owners of land • Accept gifts, donations and bequests

Trust for Nature meets its statutory objects by providing private land conservation services to the Victorian community, government and private landowners. The key services are:

• Land protection services• Stewardship services• Environmental markets services• Conservation reserves• Revolving Fund

Further detail about these services can be found from pages 6 to 18 of this report.


Table 1: Links between Trust for Nature’s statutory objects and its activities and services

Victorian Conservation Trust Act 1972 objects:

Our Statewide Conservation PlanTrust for Nature is guided by its Statewide Conservation Plan. This provides an over-arching, statewide, scientific framework to inform conservation on private land in Victoria. It identifies private land most in need of protection.

Specifically, it identifies 12 landscapes across Victoria that will make the greatest contribution towards conservation on private land, and prioritises protection of the most threatened ecosystems, wetlands, and plant and wildlife species.

The preservation of areas which are

ecologically significant

The conservation of wildlife and native plants

The conservation and creation of areas for

scientific study, public enjoyment, recreation

and education

Trust for Nature activities and services• Land protection services:

covenants and land management agreements

• Environmental markets services

• Revolving Fund• Protecting ecologically

significant areas• Working collaboratively

Trust for Nature activities and services• Stewardship services• Focal landscapes and

connectivity• Managing protected areas• Improving threatened species

conservation

Trust for Nature activities and services• Education• Supporting research• Events• Development and

communications activities• Contributing to public policy


KEY SERVICESLand management and covenantingTrust for Nature registered 34 conservation covenants in 2016-17. These comprised:• 7 covenants voluntarily placed on title without the

landowner receiving an incentive to do so• 23 incentive covenants - where a covenant is agreed

as a result of the landowner’s participation in an incentive program

• 1 covenant developed in a commercial context - where a covenant is agreed to due to a planning permit requirement, native vegetation offset requirement or fee-for-service arrangements with the land manager

• 3 amendments to existing covenants which resulted in increased areas of land under formal protection as part of project delivery

In addition, one technical amendment was registered on title to an existing covenant to clarify the terms of the covenant and survey plan.

Regional staff conducted 102 covenant assessment visits during the year, compared with 98 visits in 2015-16. Properties were assessed for suitability for covenanting, resulting in the preparation of draft covenant proposals for a further 1,514 hectares of land.

Table 2: Conservation covenants registered and area protected

Registered covenants in

2016-17

Registered covenants in

2015-16

Ten-year average registered annual

covenants (2007-2017)

Registered covenant total (1986-2017)

Total 34 28 59 1,385

Area protected in 2016-17

Area protected in 2015-16

Ten-year average total area protected

2007-17

Total area protected 1986-2017

Total 1,802 ha 1,706 ha 3,100 ha 63,117 ha

StewardshipThe objective of Trust for Nature’s stewardship program is to work cooperatively with landowners so that all areas of habitat covenanted by the Trust are managed to maintain and enhance their conservation value. The stewardship program represents a key contribution by the Trust towards the long-term conservation outcomes of government environmental programs.

The Trust works directly with landowners to provide advice on management issues, address threats to biodiversity values and monitor the condition of habitat and trends of species populations on covenanted properties. This is achieved through property visits, the development of management plans and the provision of conservation advice, support and information.

In addition, the stewardship program may identify funding opportunities for landowners to undertake conservation works on covenanted properties. This can include incentive and tender programs, rate concessions, tax concessions or volunteer labour support. The types of activities covered may include revegetation, control of threats such as feral animals, or implementing long-term strategies to improve or protect threatened species.

Trust staff developed and reviewed a total of 126 management plans and conducted 215 stewardship visits to covenanted properties throughout the year.

An expanded set of landholder engagement measures will be developed in 2017-18.

Table 3: Stewardship Services

2016-17 2015-16

Stewardship visits 215 179

Management plans prepared

126 55


Environmental markets services

2 Refers to agreements reached preceding covenant registration.

3 Refers to new covenants and amendments to existing covenants undertaken to meet a native vegetation offset requirement.

The objective of Trust for Nature’s engagement in environmental markets is twofold: to ensure the highest conservation benefits flow from offsets for permitted vegetation and habitat loss; and to support and complement Trust for Nature’s activities to conserve native plants and wildlife.

Trust for Nature is engaged in the native vegetation offset market as its conservation covenant is one of the mechanisms permitted for securing the permanent protection of an offset site in Victoria. The Trust primarily provides services for on-title agreements through its covenant program and ongoing monitoring through its stewardship program. Identification of high-value habitat for protection is also available through its regional network. Commercial agreements are typically negotiated separately through a broker or directly between the parties. Planning and regulatory issues are handled by consultants.

The offset program operates in both state and federal jurisdictions. Initially, an offset agreement is completed between all parties to develop an offset arrangement, after which an offset covenant that meets regulatory requirements is developed and registered on the land. Covenants facilitated through native offset agreements are separate and distinct from covenants facilitated through incentive programs (such as BushTender) or commercial purposes.

While protection through offset covenants increased in 2016-17, overall demand for services in the native vegetation offset market declined with a drop in commencement of new offset projects.

The Trust continues to assess its role in the emerging carbon offset market and seeks to develop partnerships that will add to its expertise and resources to support conservation through emerging carbon markets. This year, Trust for Nature reviewed potential private properties suitable to trial the development of a methodology for Blue Carbon (carbon stored in coastal and marine ecosystems).

Table 4: Offset agreements completed

2016-17 2015-16

Offset agreements completed2 1 13

Area of habitat (hectares) 39.70 546

Table 5: Offset covenants registered on title

2016-17 2015-16

Offset covenants registered3 6 5

Area of habitat (hectares) 293 242


Revolving FundTrust for Nature’s Revolving Fund is a market-based conservation instrument. Its objective is to use the real estate market to achieve conservation outcomes, as per the Trust’s statutory power to buy and sell land. The Revolving Fund matches the supply provided by the owners of private properties of high nature-conservation value with demand from people in the community who wish to purchase and protect these values. The Revolving Fund protects conservation values through an obligation for all purchasers to covenant the property. As the Revolving Fund operates in the property market, factors that affect the market will also have an impact on the Fund. The Trust aims to maintain the value of the Revolving Fund over time.

Trust for Nature’s strategic plan has a goal to significantly increase the capital value of the Revolving Fund to support the conservation of more high priority private land. In 2016-17, the Revolving Fund focused its resources on the preparation of a business plan for capital raising. The purchase and sales program saw one property purchased for protection. Since its inception, the Fund has purchased 63 properties, sold 57, and so protected 6,852 hectares of conservation land.

Table 6: Revolving Fund statistics

2016-17 2015-16 2014-15

Properties sold 0 05 properties, total 467 ha,

value $1,391,500

Properties bought1 property, total 17 ha,

value $126,0003 properties, total 166 ha,

value $480,6750

Interest income $66,713 $83,803 $73,121

Donations/ transfers in $45,000$234,662

$4,090

Properties retained11 properties, total 1,000 ha,

value $1,700,9715 properties, total 982 ha,

value $1,577,5042 properties, total 816 ha,

value $1,095,000

Cash/amounts owing $2,097,631 $2,458,685 $3,016,860

Total value of Revolving Fund $3,798,602 $4,036,189 $4,113,689

Note: A property held by Trust for Nature has been prepared for sale as 6 separate parcels. This increases the number of properties retained, but does not affect the area of land held.

KEY SERVICES (continued)


OPERATIONAL OBJECTIVES AND OUTCOMESOperational and Budgetary Objectives for Key ServicesThe achievements of the Trust’s activities and services against the objects of the Victorian Conservation Trust Act 1972 can be found in summary throughout this report. In line with statutory disclosure requirements, the Trust also reports on the targets and outcomes of its operational objectives.

Table 7: Operational objective outcomes

Services Target (qualitative & quantitative) Outcomes 2016-17

Conservation covenants

• To negotiate 1,200 ha for conservation covenants*

• 1,514 ha under negotiation for conservation covenant

• To register covenants over 3,100 ha* • 1,802 ha protected by registered conservation covenants

Land stewardship

• To prepare 270 management plans for covenanted properties

• 126 management plans prepared for covenanted properties

• To visit 100 covenanted properties • 215 visits to covenanted properties• To host 30 engagement events

(field days, workshops)• 81 engagement events hosted or

co-hosted

Environmental markets

• To increase the number and efficiency of agreements developed through the native vegetation offset market

• 1 offset agreement completed• 6 offset covenants registered

Revolving Fund

• To maintain the value of Revolving Fund contributions over time

• The value of the Revolving Fund reduced by $237,587 in 2016-17

• Interest on funds held decreased from $83,803 in 2015-16 to $66,713

• 1 property was bought with a total area of 17 ha and a value of $126,000

• Retained $2,097,631 in cash for use by Revolving Fund

• Holding 11 properties comprising 1,000 ha with a value of $1,700,971

• To grow the value of private investment in nature conservation through contributions to the Revolving Fund

• $45,000 additional contributions to the Revolving Fund were secured in 2016-17

Development

• To grow the value of private investment in nature conservation through development activities and prudent funds management

• Development income from donations (excluding bequests) decreased from $766,945 in 2015-16 to $635,836

• Grant income increased from $263,667 in 2015-16 to $445,334

• Bequest income decreased from $587,463 in 2015-16 to $212,634

• Dividend income decreased from $206,217 in 2015-16 to $159,473

• Interest income decreased from $380,434 in 2015-16 to $332,878

• To carry out two fundraising appeals with a total fundraising target of $170,000

• Christmas appeal in December 2016 raised $52,400

• End of Financial Year appeal in June 2017 raised $320,661

*Long-term standing conservation targets. Actual outcomes exceed Catchment Management Authority contract targets.


Table 8: Conservation covenants registered by region

Region Registered covenants in 2016-17

Registered covenants in 2015-16

Registered covenants total

Corangamite 0 1 97

East Gippsland 6 4 132

Glenelg Hopkins 7 3 96

Goulburn Broken 2 4 178

Mallee 2 2 40

North Central 6 9 238

North East 3 0 69

Port Phillip & Westernport 1 4 238

West Gippsland 2 2 136

Wimmera 5 1 161

Total 34 30 1,385

Table 9: Area protected by registered conservation covenants

Region Area protected in 2016-17 (ha)

Area protected in 2015-16 (ha)

Total area protected (ha)

Corangamite 0 13 2,244

East Gippsland 152 183 6,419

Glenelg Hopkins 544 135 4,103

Goulburn Broken 40 156 7,057

Mallee 17 321 3,582

North Central 335 793 11,212

North East 80 0 3,522

Port Phillip & Westernport 40 18 3,750

West Gippsland 286 62 6,160

Wimmera 308 25 15,068

Total 1,802 1,706 63,117

Note: The total area shown under covenant can change over time due to improved mapping techniques; and increases to areas already under covenant.

OPERATIONAL OBJECTIVES AND OUTCOMES (continued)


CONSERVATION ACHIEVEMENTSProtecting ecologically significant areasIn 2016-17, Trust for Nature registered 34 new covenants (excluding 6 offset covenants) that contributed to an increase in the National Reserve System by 1,802 hectares.

Covenants were registered in 14 of Victoria’s 28 bioregions, including 9 of the 12 bioregions that are under-represented (based on 17% land area protection target). In total, 76% of all registered covenants in 2016-17 were located in the under-represented bioregions, and included 86% of the area protected.

Altogether, 91% of the registered covenants included native vegetation types assessed as being under-represented in the National Reserve System. This collectively represented 45% of the extent protected through these new covenants in 2016-17. Furthermore, of the 64 different Ecological Vegetation Classes (EVCs) protected under covenant during 2016-17, 74% were classified as rare or threatened in Victoria and 36% as endangered.

Notable ecosystems protected by the Trust in 2016-17 included examples of eight nationally threatened Environment Protection and Biodiversity Conservation Act (1999) listed communities, which were collectively represented on 56% of all covenants registered this financial year.

Trust for Nature increased the level of protection in seven of its 12 focal landscapes, with the total land protected in these focal landscapes comprising 59% of the total land area protected under covenant in this financial year. Collectively, 90% of the habitat area protected under covenant this year contributed to improving the representativeness of the National Reserve System (located in under-represented bioregions) and/or increasing its adequacy (located in focal landscapes).

Trust for Nature also contributed in 2016-17 towards a number of national and international programs and forums focussing on biodiversity protection. These included:

• Providing protected area data to the biennial Collaborative Australian Protected Area Database which helps inform national analyses of progress towards formal protection of Australia’s biodiversity under national and international commitments

• Participating in the Australian Committee for IUCN’s (International Union for Conservation of Nature) forum on setting directions for terrestrial biodiversity conservation

• Participating in the World Parks Congress• Participating in the Oceania Ecosystem Services

Forum• Attendance at Rally 16, an international land

conservation conference hosted by the Land Trust Alliance in the United States

• Representation on the steering committee of the International Land Conservation Network

• Representation on the Australian Business Biodiversity Initiative

The Trust also made submissions to the Australian Government’s Department of the Environment and Energy review of climate change policy and in response to the Climate Change Authority’s issues paper Action on Land: Reducing emissions, conserving natural capital and improving farm productivity.

With support from the Victorian Government’s Sustainability Fund, Trust for Nature reviewed its conservation planning approach in the context of climate-change adaptation, accessing new scientific information relating to connectivity, sea-level rise, carbon sequestration and Catchment Management Authority (CMA) priority areas for protection and restoration to inform future prioritisation. This work will continue in 2017-18.


Table 10: The Interim Biogeographic Regionalisation for Australia (IBRA) bioregions and number of Ecological Vegetation Classes (EVCs) protected via conservation covenants (excluding offset covenants and amendments) and the area within each Catchment Management Authority (CMA) region

CMA IBRA Region Victorian Bioregion

Number of registered covenants Area (ha) no. of EVCs

East Gippsland

South East Coastal Plain Gippsland Plain 3 32.52 4

South East Corner East Gippsland Lowlands 1 4.61 2

East Gippsland Uplands 1 94.31 2

South Eastern Highlands Highlands - Southern Fall 1 20.06 1

Glenelg Hopkins

Victorian Midlands Central Victorian Uplands 2 39.78 1

Dundas Tablelands 1 199.19 3

Victorian Volcanic Plain Victorian Volcanic Plain 4 304.89 7

Goulburn BrokenRiverina Murray Fans 1 21.4 2

Victorian Riverina 1 18.98 2

Mallee Murray Darling DepressionMurray Mallee 1 7.69 1

Wimmera 1 9.52 1

North Central

Riverina Victorian Riverina 2 217.44 1

Victorian Midlands Central Victorian Uplands 1 10.82 2

Goldfields 2 102.43 4

Victorian Volcanic Plain Victorian Volcanic Plain 1 4.61 1

North EastNSW South Western

Slopes* Northern Inland Slopes 2 73.45 3

South Eastern Highlands Highlands - Northern Fall 1 7.03 3

Port Phillip & Westernport South Eastern Highlands Highlands - Southern Fall 1 40.47 2

West Gippsland South East Coastal Plain Gippsland Plain 2 285.73 9

WimmeraMurray Darling Depression Wimmera 3 223.51 6

Victorian Midlands Greater Grampians 2 84.08 7

34 1,802.52 64

*The NSW South Western Slopes is an IBRA Region that includes parts of North East Victoria.

CONSERVATION ACHIEVEMENTS (continued)


Working with others to ensure collaborative permanent protection at a landscape scaleIn 2016-17, the Trust worked in partnership with more than 120 organisations, including Australian Government, State Government and local government entities, conservation organisations, Landcare and other community groups and businesses. With partners, Trust for Nature staff actively participated in many strategic planning forums around Victoria, including regional partnership and planning meetings, conservation planning workshops, and close engagement in working groups associated with the development of the Victorian Government’s 20-year biodiversity plan, Protecting Victoria’s Environment – Biodiversity 2037. This included the secondment of a Trust staff member to the Department of Environment, Land, Water and Planning (DELWP) to assist with preparation of the final plan and ongoing involvement with the plan’s implementation.

A positive example of the strong collaboration between Trust for Nature and partners was our close involvement in the planning and development of 10 funding bids around Victoria, as part of the Victorian Government’s strategic Biodiversity On-Ground Action – Regional Hubs funding program. All 10 bids were successful and will lead to important gains for threatened species protection and conservation on private land, including: additional areas of habitat protected under covenant in our Victorian Midlands and Northern Inland Slopes focal landscapes; pest animal control and weed control in multiple focal landscapes; additional support for covenantors to assist them with habitat management; and increased landholder engagement and education.

A notable aspect of these project proposals was that most of the Trust’s proposals, or those of its partners, were based on priority strategies identified in the 10 landscape-scale Conservation Action Plans (CAP) which have been developed collaboratively over the past few years. The Trust continues to develop CAPs for other priority landscapes identified in our Statewide Conservation Plan, with an additional three already scheduled for preparation in 2017-18. Trust for Nature has also been providing technical expertise and support to Parks Victoria, which is preparing CAPs for each of its 18 landscapes. This partnership is helping to align our two organisations’ priorities for conservation on protected areas, both on public and private land.

In 2016-17, Trust for Nature also focussed on strengthening relationships with the Catchments and Water programs of DELWP and the CMAs, as part of the implementation of the Integrated Catchment Strategy, Victorian Waterways Management Strategy and Water for Victoria. Activities have included regional involvement with the preparation of funding bids as part of the Our Catchments, Our Communities funding program; representation on a statewide working group exploring long-term stewardship options for riparian land under management agreement; representation on the stakeholder committee for Vic Catchments; presentations to the river health program; and participation at the Victorian Catchments Summit. The outcomes of all of these initiatives will result in increased protection of key private land areas, particularly aquatic and riparian habitats, over the next three years.

One innovative project relating to long-term protection and management of wetland environments was a collaborative project with West Gippsland CMA and other partners to scope potential long-term land-use options for private land parcels affected by the intermittent inundation of the Powlett River Estuary. Trust for Nature was employed by the CMA to undertake landholder interviews relating to potential land-use options and recommend preferred long-term approaches. The project drew on the Trust’s technical expertise as well as its recognised expertise in landholder engagement and has resulted in clear guidance to the CMA as to next steps.


This year Trust for Nature again hosted the National Private Land Conservation Conference, in partnership with the Australian Land Conservation Alliance and National Australia Bank. The conference built on the previous two events, and included keynote speakers from the United States of America and New Zealand. This conference also included for the first time some associated workshops, including one hosted by Trust for Nature focussing on landholder engagement. Another key event co-hosted by Trust for Nature this year was the North East Environment Forum in partnership with North East CMA, DELWP, Parks Victoria and Charles Sturt University. The forum’s theme was connecting people with nature, aligning the event with one of the two goals in the new biodiversity plan.

Managing protected areas In 2016-17, Trust for Nature undertook significant management activity on covenanted properties and its reserves, as part of funded projects. This included:

• Feral herbivore control on more than 13,000 hectares • Feral predator control on more than 49,000 hectares • Weed control over more than 9,900 hectares• Addition of 30 nest boxes on protected sites• More than 90 ecological surveys and assessments,

primarily associated with threatened species projects

• Installation of 21 kilometres of fencingAdditional work was undertaken on Trust for Nature reserves by voluntary committees of management and community members. At Snape Reserve near Dimboola, for example, the 19 committee members last year donated more than 2,500 hours towards threat management, habitat improvement and flora and fauna assessments. Other committees of management were similarly active. Trust for Nature aims to provide additional support to reserve committees in 2017-18, with funding assistance from the Biophilia Foundation.

Improving threatened species conservationDuring 2016-17, the Trust collaborated with a number of conservation and land management agencies and organisations to help secure, maintain or improve habitat for a variety of threatened species. These included the Southern Bent-wing Bat, Plains-wanderer, New Holland Mouse, Fat-tailed Dunnart, Gaping Leek-orchid and Winged Peppercress.

With funding support from the Victorian Government, Australian Government and Port Phillip and Westernport CMA, Trust for Nature progressed the purchase of two key properties for Helmeted Honeyeater conservation during 2016-17. We expect to finalise these purchases in 2017-18. The Trust has also contributed to this critically endangered bird’s conservation through our participation as a member of the Yellingbo Conservation Area Coordinating Committee and Yarra 4 Life Coordination Committee.

As part of the Trust’s standard ecological assessment undertaken on covenants and reserves, 96 additional records of threatened flora and 73 additional records of threatened fauna were made in 2016-17. This included the discovery of a population of the nationally threatened Growling Grass Frog on a wetland at Neds Corner Station, the first time we had recorded the species here. This demonstrates the conservation benefits resulting from the removal of stock-grazing, improvements in vegetation cover and increases in environmental watering at the reserve. It has also resulted in additional environmental watering support from Mallee CMA. Another important find at Neds Corner Station this year was what appears to be a new daisy species for Victoria - the large Hard-head Daisy (Brachyscome dichromosomatica).

In the Goulburn Broken region, Trust for Nature staff were encouraged by observations of the nationally threatened Superb Parrot on a covenanted property along Broken Creek, which has been progressively improved with large-scale revegetation over the last 10 years. These sightings confirm the importance of protecting habitat on private land for threatened species.

CONSERVATION ACHIEVEMENTS (continued)


EducationA key initiative this year, supported by the Victorian Government’s Sustainability Fund, has been the preparation and circulation of educational material about Trust for Nature as part of school curricula for VCE Outdoor Education and Environmental Sciences. This has included information for a revised class textbook, as well as material for teaching resources. The Trust plans to build on this work in 2017-18, expanding our engagement with Victorian schools teaching this course.

Trust for Nature staff also hosted several school and university educational days on covenanted properties and reserves around the State, including an event with two primary schools at Bank Australia’s conservation reserve in the Wimmera.

Together with other partners in the region, we co-hosted the 19th Wimmera Biodiversity Seminar. This was held at Dimboola Memorial Secondary College, attracting nearly 100 people. The day was entitled “Wurek-wuran-dya” (speaking together on land), with themes related to Aboriginal land management. There were talks on new and old Aboriginal traditions, the growing industry of Aboriginal plants as foods, and the relationship between Aboriginal people and the land, and how this shapes land management.

Two Trust staff were supported this year to participate in training for Healthy Country Planning – an adapted form of Conservation Action Planning specifically for Aboriginal peoples. As a result, Trust for Nature has since assisted in running several Healthy Country Planning workshops with North Central CMA, and Traditional Owner groups.

Through the Scholes Fellowship, Trust for Nature supports staff to undertake learning opportunities relating to environmental education. This year, the five staff who help manage Neds Corner Station were supported to visit the Australian Wildlife Conservancy’s (AWC) Scotia Sanctuary in New South Wales to learn about fauna reintroduction programs. The study tour complemented scoping work by AWC for Trust for Nature, evaluating the potential for fauna reintroductions at Neds Corner Station. This research, funded by the Yulgilbar Foundation, will be completed in 2017-18.

Supporting scientific study Trust for Nature staff provided support and data to a range of ecology, sociology and archaeology research projects in 2016-17. This included collaborations with the University of Melbourne, Monash University, La Trobe University, Deakin University, RMIT University, Charles Sturt University and the University of Queensland.

In partnership with the Australian Land Conservation Alliance, the Trust also assisted with a national survey of covenantors to inform the respective organisations’ approaches to landholder support. More than 400 covenantors responded to this survey, providing information to help guide our stewardship program.

Trust staff contributed to the publication of scientific research, authoring or co-authoring two peer-reviewed published papers in 2016-17, and providing expert input into others. The Trust also supported scientific study by providing access to covenants and reserves, supporting research funding applications by key partners such as Zoos Victoria, contributing to science workshops and by offering industry work placements or mentoring for students. As part of the preparation of Victoria’s Biodiversity Plan and associated investment programs, the Trust also contributed relevant data layers to assist with the development of prioritisation models for management action.

Special Purpose TrustsTrust for Nature acts as a trustee for several special-purpose trusts that have been established through bequests or regulatory requirements for specified conservation activities. These trusts include the:

• Amateur Gardeners Foundation, established to accumulate and share knowledge relating to dwarfer and Alpine plants for the benefit of amateur gardeners

• Pimelea Conservation Trust Fund, established to advance the protection and conservation of Spiny Rice-flower

• Growling Grass Frog Trust, established for the protection and benefit of the Growling Grass Frog in the Merri Creek catchment area

• Golden Sun Moth Conservation Fund, established for the protection and benefit of the Golden Sun Moth


COMMUNITY ENGAGEMENTEventsTrust for Nature engages with a variety of stakeholders and everyday Victorians as part of its conservation mission. We reach out to landowners, covenantors, supporters, volunteers, other conservation organisations, government and members of the community. In 2016-17, Trust staff hosted or co-hosted more than 80 engagement events, mainly in regional Victoria. Among them were 10 Spring Into Nature events, held between September and November 2016. Spring Into Nature enables people to experience nature by visiting covenanted properties and Trust for Nature reserves. Highlights from this year’s events were lizard hunts, nature walks and a celebration of 30 years of Landcare at Tootgarook Swamp.

On 2 March 2017, Trust for Nature and Bush Heritage Australia hosted the sixth annual Women in Conservation Breakfast in Melbourne. This event attracted 467 attendees who heard from Dr Anne Poelina, Nyikina Traditional Owner from the Mardoowara, Lower Fitzroy River in Western Australia. Dr Poelina spoke of her vision of being able to protect land and have it granted the same legal rights as a human being, to mirror that of the Whanganui River in New Zealand, meaning it must be treated as a living entity. Dr Poelina is an Adjunct Senior Research Fellow with the University of Notre Dame, a Research Fellow with the Northern Australia Institute at Charles Darwin University and a Councillor with the Australian Conservation Foundation. The event was sponsored by National Australia Bank.

Traditional Owner engagement and partnershipsIn 2017, Trust for Nature’s Board formally adopted a Statement of Intent and Commitment to Victorian Traditional Owner Groups. This statement recognises that all Victorians share in the benefits of the custodianship and caring for country that Traditional Owners have practised for centuries.

The policy formally restates Trust for Nature’s ongoing commitment to meaningful engagement and partnership approaches to working with Victorian Traditional Owner groups being guided by four key principles:

• Recognition and respect• Cultural learning and development• Healthy natural environments and ecosystems• Capacity building and economicIn 2016-17, Trust for Nature participated in 80 first peoples engagement activities. These included developing and delivering new partnership projects, spending time together on country, land management, joint funding applications, and sharing knowledge at meetings, community events, workshops and presentations. Some of these activities are outlined below.

Through the National Landcare Programme’s Protecting Ramsar Sites in the Gippsland Lakes Project, Trust for Nature has worked with the Lake Tyers Aboriginal Trust to protect a Ramsar-listed wetland and the fringing vegetation communities which include the nationally listed Littoral Rainforest. The area includes sites of cultural significance. Together, we have prepared the final Conservation Management Plan for Bung Yarnda, which has identified conservation values and significance, threats and recommendations for management. We have protected 20 hectares of lake frontage and sites of cultural significance with new fencing, completed 35 hectares of follow-up weed control, and prepared a joint funding submission to be able to continue and expand this work.


Trust for Nature has also employed the Gunaikurnai Land and Waters Aboriginal Corporation’s bushland work crew to assist with on-ground delivery of project activities in East Gippsland. We are working with the Joint Managers and Indigenous Rangers to undertake weed control in Lake Tyers Coastal Park and have been meeting to discuss other management activities we could assist with through our National Landcare Programme project, Protecting the EPBC Listed Littoral Rainforest Vegetation Community.

In the Port Phillip and Westernport region, Trust for Nature employed the Wurundjeri Narrap Team to work on country, sharing knowledge and completing on-ground management activities. We continue to partner with the Wurundjeri Tribe Land and Compensation Cultural Heritage Council to create employment opportunities, develop new projects and name new conservation reserves. Last year, we toured the Yellingbo area together, visiting Helmeted Honeyeater and Leadbeater’s Possum habitat. We have also been assisting the Bunurong Land Council Aboriginal Corporation develop a new land management group.

At Neds Corner Station, we have been engaging with Traditional Owners through La Trobe University’s archaeological work on the property. The Ta Ru Lands Board of Management hosted a Healthy Country Planning meeting where the Trust spoke about pest control across borders. Representatives of this group, as well as Elders from the Ngintait Traditional Owner group, visited Neds Corner during the Victorian Landcare Council’s Mallee Forum, and we hope to continue to grow these relationships. Trust for Nature staff continue to liaise with the Mallee CMA and Parks Victoria’s Indigenous Facilitators responsible for cultural protection across Neds.

In northern Victoria, Trust for Nature is working actively with the Dja Dja Wurrung Clans Aboriginal Corporation when planning conservation programs on our reserves, and their works crew have been engaged to do habitat improvement activities at Long Swamp: Murray Family Conservation Reserve. We also spent time on country together visiting covenanted properties around Barfold Gorge, on a tour hosted by North Central CMA. Trust for Nature has been participating in Healthy Country Planning workshops in northern Victoria,

most recently with Barapa Barapa Traditional Owners and Dja Dja Wurrung Traditional Owners. We also enjoyed participating in the Victorian Local Aboriginal Network’s conference held last year in Bendigo. Trust for Nature has also employed Traditional Owners from Barapa Land and Water Landcare Group to assist with on-ground works as part of North Central CMA’s remnant grassy ecosystem project, funded by the Australian Government through the National Landcare Programme.

In the Wimmera, Trust for Nature and Greening Australia have been working with Barengi Gadjin Land Council to plan the conservation activities on Bank Australia’s conservation reserve at Minimay. The Barengi Gadjin Land Council joined us for a Spring Into Nature event at the reserve, running activities about culture, and sharing stories about looking after country.

In June, Trust for Nature partnered with the North East CMA to hold a traditional burning workshop on a covenanted property in Kiewa. Uncle Rod Mason, a Ngarigo elder and Traditional Land Manager, led the session and shared his knowledge with landholders keen to find out more about Aboriginal burning techniques. The event was made possible by the National Landcare Programme, and forms part of an ongoing burning trial project in the Kiewa area. Elsewhere in North East Victoria, we have been spending time on country with Traditional Owners from the Taungurung Clans Aboriginal Corporation visiting covenanted properties together.

Trust for Nature also created a new position this year: a Conservation Officer Traineeship focussed on training, employing, and mentoring a person from within the Aboriginal community, supported by the National Landcare Programme and East Gippsland CMA’s Indigenous Engagement Program. As part of the AFL Sportsready program, the trainee is undertaking a Conservation, Forest and Lands Certificate III and gaining chemical use qualifications. Now an integral member of our East Gippsland team, this trainee continues to make an important contribution to on-ground delivery of project activities such as revegetation, vegetation monitoring, fence maintenance and weed control.


Public policyAs mentioned earlier in this Annual Report, Trust for Nature has made a significant contribution this year to the development of the Victorian Government’s 20-year biodiversity plan, Protecting Victoria’s Environment – Biodiversity 2037. This included the secondment of a Trust staff member to the Department of Environment, Land, Water and Planning (DELWP) to assist with preparation of the final plan and ongoing involvement with the plan’s implementation. The Trust also contributed to the Victorian Government’s Native Vegetation Regulations Review as a member of the stakeholder reference group, and to the review of the Flora and Fauna Guarantee Act.

Additionally, Trust for Nature made submissions or provided formal input relating to some key public policy areas, including: the draft Port Phillip Bay Environmental Management Plan; the Moolap Coastal Strategic Framework Plan Discussion Paper; Yarra River Protection Act Discussion Paper; and the Victorian Environmental Assessment Council’s Statewide Assessment of Public Land Investigation draft proposals paper.

Meanwhile, the Trust continued its commitment to informing public policy decision-makers about the benefits of reforming taxation laws and administrative arrangements to ensure fit-for-purpose incentives are in place for landowners making significant financial and legal commitments to protect and restore private land for environmental and public benefit. Work undertaken during the year included:

• Collaborating with DELWP to identify potential improvements that could be made to the way in which municipal rate, land tax and national income tax arrangements impact upon private landowners’ ability to manage privately protected areas into perpetuity

• As part of the Australian Land Conservation Alliance, considering how a statement of reforms to Australia’s income tax laws could significantly boost the rate at which under-protected ecosystems could be permanently protected on private land

• Sharing information with the Australian Panel of Experts on Environmental Law (APEEL) about how the Canadian and United States governments use income and capital gains tax concessions to significantly boost the rate at which under-protected ecosystems on private land can be restored and protected to ensure sustainable natural resource use

In addition, Trust for Nature continues to provide public policy makers with data and information about how privately protected areas can provide multiple environmental benefits in efforts to mitigate the impacts of climate change – including reference to research on forest carbon stocks in properties and covenants owned or managed by Trust for Nature. The Trust made a submission to the Australian Government’s Department of the Environment and Energy review of climate change policy. We also made a submission in response to the Climate Change Authority’s issues paper Action on Land: Reducing emissions, conserving natural capital and improving farm productivity.

Corporate Support and DevelopmentThis was the first year of Trust for Nature’s Strategic Plan to 2021, developed with support from the Victorian Government. The strategy has a focus on innovation and leadership, applied to private land conservation in Victoria. To foster collaboration around the strategy, Trust for Nature has been sharing it with key stakeholders and supporters.

Meanwhile, new branding for Trust for Nature was progressively rolled out in 2016-17. This culminated in the launch of a new, user-friendly website in June. Marketing and print materials, such as the Conservation Bulletin, were also updated to reflect the revised branding.

These projects were part of a marketing and communications plan that aims to increase Trust for Nature’s profile, community engagement and associated fundraising for its conservation activities. A significant outcome was the raising of more than $320,000 in the end-of-financial-year appeal – a 60 per cent increase on the previous year’s appeal.

The 2016-17 year also saw ongoing work on Trust for Nature’s business systems. The first stage of the Geographic Information System (GIS) upgrade project was completed, along with a midterm IT infrastructure upgrade and move from Raisers Edge to Raisers Edge NXT relationship management system. Work continued on sourcing an appropriate system to replace Naturebase, Trust for Nature’s conservation and property management database.

COMMUNITY ENGAGEMENT (continued)


PARTNERS AND VOLUNTEERS

Trust for Nature carries out its work to protect native plants and wildlife on private land through partnership and collaboration. The Trust gratefully acknowledges the many individuals, community groups, covenantors, associations, foundations and companies who continue to lend their support, both financial and otherwise, to Trust for Nature. It is only through collaboration and cooperation that we can fully achieve our goals.Trust for Nature sincerely thanks the following individuals and organisations that have made contributions to Trust for Nature in 2016-17:

Government departments and statutory authorities• Aboriginal Victoria• Australian Government Department

of the Environment and Energy• Commissioner for

Environmental Sustainability• Corangamite Catchment

Management Authority• Country Fire Authority• Department of Economic

Development, Jobs, Transport and Resources

• Department of Environment, Land, Water and Planning

• East Gippsland Catchment Management Authority

• Glenelg Hopkins Catchment Management Authority

• Goulburn Broken Catchment Management Authority

• Local Governments of Victoria• Mallee Catchment

Management Authority• Melbourne Water• Native Titles Services Victoria• North Central Catchment

Management Authority• North East Catchment

Management Authority

• Parks Victoria• Port Phillip & Westernport Catchment

Management Authority• Royal Botanic Gardens Victoria• Southern Rural Water• West Gippsland Catchment

Management Authority• Wimmera Catchment

Management Authority• Victorian Catchment

Management Council• Victorian Environmental

Assessment Council• Zoos Victoria

Committees of Management, Friends Groups, organisations and individuals that provide special assistance on Trust for Nature properties

Bungalook Conservation Reserve• Dr Graeme Lorimer• Graeme Mann• Peter Mann

Dexter’s Bush• Mick and Liz Dexter

Dog Rocks Committee of Management• George and Lit Belcher, and the Dog

Rocks Flora and Fauna Sanctuary• John Cameron• Elizabeth Clarke• David Head• Bill Honey• Peter Keays• Peter Spear

Friends of Harbury• Robin Allison• Jean Allison• Elizabeth and Ian Fraser• James and Margaret Grant• Kate Walsh

Friends of Pallister’s Reserve Inc• R Alexander and J Schlapp• Robyn Archer and Peter Dexter• Margaret and Arthur Banks• Rhonda and Peter Barrand• B Boyd and C Thomas• Ros and Jock Bromwell• Lynn Brown• Peter and J Carrucan• Ray Chandler• John Chivers• Lesley Cook and Colin May• Keith and Diane Davis• Lyn and Les Gardiner• Nick Glover


• Gerda Gleeson• Colin Goodall• Michael Herbert• Richard Hodgens• Nance Kearney• Brian and Elizabeth Kenna• Michael Lamour• Pauline McCarthy• J and J McLean• Lance and Betty Moulden• F and L Morgan-Payler• Rebecca Pagan• Adam Pope and Jan Barton• Isabel Presser• Pat Ryan• Joan Shanahan• John Sherwood• Louise Sheba• John and Judy Shilliday• Rosemary Simons• Brian Snape AM and Diana Snape• Kevin Sparrow• A Stevenson and J Cook• Mona Swinton• Pearl Trigger• Peter Tyler• Alan and Dorothy Thomson• Helen Ulmann• Richard and Ruth Walter• Beryl White• Rob and Margaret Whitehead• John Young

Mt Elephant Committee of Management• Lesley Brown• Rod Eldridge• Jane and Gary French• Laweton French• Norma Grant• Geoffrey Henderson• Val Lang AM and Chris Lang• Judith Sarto• Gert and Lynnette Stammberger

Mt Elgin Swamp Committee of Management• Gary and Robyn Clark• Clive Crouch OAM• Wayne Donnell• Alan Frankham• Kent and Jennifer Goldsworthy• Geoff and Cathy Moll• Whimpey Reichelt OAM

Ocean Grove Park Committee of Management • Phil Dix• Betty Glasgow• Leigh Holloway• Shelley McKiernan• Mark McLean• John Manoski• Don Pietrapertosa• Terry Riordan• Murray Waugh

Ralph Illidge Sanctuary Committee of Management• Shirley Duffield• Frank Duggan• Lauren Eddy• Maureen Finnigan• Kevin Sparrow• Peter Schultz• Janice Trenair• Lilly Wilkinson

Snape Reserve Committee of Management• Darryl Argall AO and Mary Argall• Ian Barry• Greg Bourke• Clive and Gillian Eastwood• Ian Flux• Jan John• Terry Lynch• John Richards• John Rocke• Leon Ryan• Lindsay Smith OAM and Sue Smith• Brian Snape AM and Diana Snape• Jonathan Starks• Cliff Unger

Uambi Committee of Management• Gwyn Davies• David Harper AM• Will Harper• Roger Lord• Graeme Lorimer• Angie Loukas• Sue Mosley• Therese Starling• Pam Yarra

Uralla Nature Reserve Committee of Management• Baw Baw Shire Council• Fred Boreham• Matt Franke

• Louise Kennedy Young• Jamie Marslen• Peter McDonald• Chris Mynard• Ken Savage• Tony Stewart

Wanderslore Sanctuary Committee of Management and the Friends of Wanderslore• Linda Clarke• Geoff Durham OAM• Steven Fernee• Lincoln Kern• Patrick O’Shaughnessy• Grif Ward

Trust for Nature also wishes to thank:• Birdlife Australia for the management

of the Clarkesdale Bird Sanctuary• Outdoor School, for the management

of our Fifteen Mile Creek property• Nillumbik Shire, for the management

of the Eltham Copper Butterfly Reserve

NGO and not-for-profit partners and fellow members of the Australian Land Conservation Alliance• Alternative Technology Association• Australian Environmental

Grantmakers Network• Australian Wildlife Conservancy• Barengi Gadjin Land Council

Aboriginal Corporation• Barapa Barapa Traditional Owners• Barwon Rivercare Group • Birdlife Australia and its

regional branches• Broken Boosey Conservation

Management Network• Bunurong Land Council Aboriginal

Corporation• Bush Heritage Australia• Cardinia Environment Coalition• Central Victorian Biolinks Alliance• Connecting Country• Conservation Ecology Centre• Conservation Volunteers Australia• Dja Dja Wurrung Clans

Aboriginal Corporation• Earthwatch• East Gippsland Landcare Network

PARTNERS AND VOLUNTEERS (continued)


• East Gippsland Rainforest Conservation Management Network

• Environmental Justice Australia (Victoria)

• Eucalypt Australia • Fairley, Bael Bael and Sandhill Lake

Landcare • Federation of Victorian Traditional

Owners Corporation• Field Naturalists Club of Victoria• First People of the Millewa Mallee• Friends of the Helmeted Honeyeater• Friends of Merri Creek • Gippsland Plains Conservation

Management Network• Great Eastern Ranges Initiative• Greenfleet• Greening Australia (Victoria)• Gunaikurnai Land and Waters

Aboriginal Corporation• Gunditj Mirring Traditional Owners

Aboriginal Corporation• Habitat 141 Alliance • Heathmont Bushcare • Helen Macpherson Smith Trust• Hindmarsh Landcare Network• Johns Hill Landcare Group• Kara Kara Conservation Management

Network• Kerang Local Indigenous Network • Lake Tyers Aboriginal Trust• Landcare Australia Ltd• Limb Family Foundation• Longwood Plains Conservation

Management Network• Millewa-Carwarp Landcare Group• Millewa Community Pioneer Forest

and Historical Society• Mount Rothwell Biodiversity

Interpretation Centre • Municipal Association of Victoria• Murray-Darling Freshwater

Research Centre • Murray-Darling Wetlands Working Group• Nature Conservation Trust of NSW• Nature Glenelg Trust• Nature Foundation SA• Nhill Sun Moth Reserve Committee

of Management • Norman Wettenhall Foundation• Northern Plains Conservation

Management Network• Plains-wanderer Recovery Team• Project Platypus Association Inc

(Upper Wimmera Landcare)• Queensland Trust for Nature• Southern Ranges Environment Alliance• Strathbogie Ranges Conservation

Management Network

• Taungurung Clans Aboriginal Corporation

• Tasmanian Land Conservancy• National Trust of Australia (WA)• The Nature Conservancy• Victorian National Parks Association• Victorian Volcanic Plains Conservation

Management Network• Wamba Wamba Traditional Owners• Wathaurong Aboriginal Co-operative

Ltd• Wedderburn Conservation

Management Network • Werrimull Landcare group • Western Port Biosphere• Whroo Goldfields Conservation

Management Network• Wurundjeri Tribe Land and

Compensation and Cultural Heritage Council Incorporated

• Yorta Yorta Nation Aboriginal Corporation

• Yulgilbar Foundation

Educational institutions• Bendigo Regional Institute of TAFE • Charles Sturt University • Deakin University• La Trobe University• Monash University• RMIT University• The University of Melbourne• University of Queensland

Corporate partners• Bank Australia• Bush Blocks • Carter Digital• Chris Tzaros photography (pro bono)• Doug Humann & Associates• Finsbury Green• Johanna Villani Design• King Performance• Kinrara• Microboss• National Australia Bank• Norton Rose Fulbright• Pearce Webster Dugdales • Property Valuers Australia• Southern Colour• Treed Environs• Vegetation Link

Volunteers• Danny, Rebecca and Jack Barnes • Val and Valerie Barnes • Brett, Stephanie and Ava Barnes • Jill, Lidia and Elena Best• Allen and Ruth Bickell

• Bev Bingley• Rex Booth• Todd Booth• Rian Booth• James and Sunday Booth• David Boyle• Michael Butcher • Kyle Cawood• Tyson Cawood• Garry Cheers• The late John Clarke, and

Helen McDonald• Clive Crouch OAM • Jennie and Greg de Freitas• Anthony Del Osto• Matt Driver• Tom Fagan • Stephen Firns• Brad and Rachael Fyfe• Ron Gerts• Rob Graison• Phil and Jess Hammett • Jonathan and Susan Hayman• Bruce Hillas• Iestyn Hocking• Fatma Ipek• Nathan Johnson• Malcolm Just • Ian and Wendy Kelly• Trish Kelly • Brett Kelynack• Samantha Kirsopp• Nathan Johnson• Don Love• Di Marshall • Graham McKechnie• Mal and Judy McKinty• Ed and Susie McNabb • Lorissa Mendoza• Ian and Sharon Miles• Verna Monaghan • Peter Morison• Peter and Kerry Moulton• Stacey Moss• Emily Newling• Carolyn Muir• Murray Orr • Richard Palmer• Oliver Pitman• Sav and Angelo• Libby Sakker• Mark and Janet Schapper• Mervyn and Jenny Shaw• Melinda Scheele• Mirinda Thorpe• Ian and Ana Westhead• Tamara Wetherall


THANK YOU TO OUR DONORS

Trust for Nature is grateful to all its donors. With their generosity, the Trust continues its work to protect nature on private land today, tomorrow and forever. We would especially like to thank the following supporters who have donated $1,000 or more this financial year. We also thank those who wished to remain anonymous. Together, we are making a difference.

Individual donors• Barbara A Baird• Liz Balogh• Eleanor Bastow• Kirsty Bennett• Cas Bennetto• Phyllis Bourke• Jasmine Brunner• Greg Burns• Ian Clarke• Margaret Cole• Leon Costermans• Vanessa Craigie• Norman Curtis• June Danks• Sue Davies• Kel Day• Geoff Driver• Geoff A Durham• Max and Pru Ervin• Peter Furneaux• Carrillo Gantner• Sylvia Geddes• Geoffrey Giles• Camilla Graves• Greenhouse Electrical Services• Lesley Griffin• Sally-Anne Hains• Harper Family Endowment• William Henderson• Estelle E Hewston• William N Holsworth

• Ian Hopkins• Paul Family Foundation• Richard Kirsner • Bob and Pamela Knight• Koreen Conservation Ltd• Ellen Koshland• John Landy• Peter Lemon• John Little• Dr Mick Lumb OAM and Judy Lumb• David McLatchie• Kim Marriott• Ruth Marriott• Andrea Marshall• Ann Miller• Sarah Minifie• Georgina Moore• Susan B Morgan• Denis Nelthorpe• L I Perkins• Pam Petschack• Douglas Pocock• Elizabeth Randall• Keith E Richards• Philip Robinson• Jennifer Rolland• Sally Romanes• Richard and Carol Smallwood• Frank and Mary Schooneveldt• Nancy Smith• Brian Snape AM• Tim Sonnreich

• Souter-Foale Family Trust• Geoffrey Storey• June Stringer• Helen Symon• Ian Tremellen• Michael Troy• James Vaux• Tim Walker• Geoffrey Wescott• Douglas Wilson• Elizabeth Xipell

Trusts and foundations and corporate donors, which supported specific projects• Australian Communities Foundation• Biophilia Foundation• Limb Family Foundation• The RE Ross Trust• The Norman Wettenhall Foundation• Geoff and Helen Handbury

Foundation• National Australia Bank• Yulgilbar Foundation

Bequests• Estate of Margot Dorum• Estate of Rosemary Kilborn• Estate of Jackie Laherty• Estate of Thomas Campbell Mackellar


FINANCIAL OVERVIEWFinance and business current year financial reviewFor 2016-17 the Trust had a net comprehensive result deficit of $1,237,083 compared to a surplus of $1,713,917 in 2015-16, primarily caused by a decrease in the revaluation reserve of $766,900 compared to an increase of $1,960,897 in the previous year.

Overall revenue levels were slightly higher than last year. The increase was primarily due to a higher Operating grant which included $510,000 from the Sustainability Fund to help the Trust deliver on-ground permanent protection and habitat management, and landholder and community engagement and education. There was also an increase in Other Income which included higher philanthropic grants for the delivery of on-ground conservation outputs. Donation and bequest income was lower this year although ongoing support for the Trust’s two major appeals, Christmas and End of Financial Year, was strong. These funds are being used to support the Trust’s on-ground habitat management across the state.

Expenditure included further payments of $205,000 to the Mt Elephant Committee of Management towards their visitor and information centre which was opened in 2016. This was funded from a bequest held by the Trust for that purpose. Other expense increases included contractors engaged to assist with the development of a business case and to fill some temporary communications and staffing needs and conveyance fees relating to a land acquisition.

The Trust’s progressive review of IT infrastructure continued with the upgrade of its Geospatial Information System (GIS), which is a critical mapping tool for informed, science-based strategic conservation. The website was also refreshed to make it compatible with today’s smart-devices.

Internal audit completed a review of the Trust’s purchasing and payments system, including its transfer payments programs, and has commenced a review of our land protection, covenanting and stewardship programs which will be delivered shortly. The Trust has also invested significant time ensuring its governance practices continue to meet the requirements of the Government’s updated financial management standards.

There was a reduction in net assets to $33 million mostly due to a reduction in the revaluation reserve for a property that the Trust is in the process of transferring to a local council.

Total assets were $60 million at year end. Of these assets, $21 million is represented by Trust owned properties which do not generate income. The remaining $39 million is held in financial assets, primarily against third party liabilities ($27 million), which includes funds held for the benefit of private landowners under 10-year native vegetation offset agreements, and reserves with specified purposes ($6 million) including the Trust’s Revolving Fund. Earnings on these funds are applied for the benefit of those funds and are not available for general use.

There are no significant matters which changed our financial position during the reporting period.

There were no significant changes or factors which affected our performance during the reporting period.

There were no events occurring after balance date which may significantly affect the Trust’s operations in subsequent reporting periods.


FINANCIAL OVERVIEW (continued)

Table 11: Five-year financial summary 2017 2016 2015 2014 2013

Operating grant 1,485,000 793,301 693,301 454,209 467,407

Government grants 1,909,451 2,255,263 2,385,555 2,476,545 3,675,800

Government grants used for property acquisitions 219,213 135,000 0 15,000 71,086

Donations & appeals 635,836 766,945 1,110,900 601,639 546,973

Bequests 212,634 587,463 72,591 35,629 561,749

Interest and dividends, net of interest paid to third parties 492,351 586,651 673,372 706,079 832,150

Other income 1,302,045 735,885 653,095 630,017 569,139

Total income 6,256,530 5,860,508 5,588,814 4,919,118 6,724,304

Salary and associated expenses 3,502,692 3,398,635 3,449,943 3,439,600 3,545,124

Conservation program expenditure 1,058,487 756,151 745,218 888,158 1,459,101

Cost of land surrendered to government for nil consideration 0 0 0 251,290 0

Payments from appeals and other reserves with specified purposes 433,348 236,356 140,086 270,633 305,770

Other expenses 2,006,620 1,719,881 1,582,625 1,533,221 1,640,528

Total expenditure 7,001,147 6,111,023 5,917,872 6,382,902 6,950,523

Net result from transactions (744,617) (250,515) (329,058) (1,463,784) (226,219)

Gain/(loss) on non-financial assets 9,608 1,400 153,654 1,500 590,560

Gain/(loss) on financial instruments 264,826 2,135 25,914 342,230 285,073

Changes in revaluation surpluses (766,900) 1,960,897 0 0 (1,217,359)

Total other economic flows (492,466) 1,964,432 179,568 343,730 (341,726)

Comprehensive result (1,237,083) 1,713,917 (149,490) (1,120,054) (567,945)

Total assets 60,134,984 59,414,184 57,267,323 58,334,166 58,349,973

Net assets 33,343,989 34,581,072 32,867,155 33,016,645 34,136,699

Note: Interest income and total income in this table is stated net of interest income and the offsetting interest expense which is directly attributable to funds held on behalf of third parties. Also refer to Note 2B on page 58 and 3E on page 59.


BOARD AND EMPLOYEES

Trust for Nature is overseen by a Board of Trustees, appointed by the Governor-in-Council on the recommendation of the Minister administering the Victorian Conservation Trust Act 1972.

PatronHer Excellency the Honourable Linda Dessau AC, Governor of Victoria

Max Ervin, ChairmanBE (Civil), MEngSc, FIEAust, FASCE (from 16 April 2013)

Max has a background in geotechnical engineering, initially with the Country Roads Board of Victoria, but since 1977 as a consultant. He has consulted extensively throughout Australia, the Pacific, Asia, Africa and the Middle East. He has won several awards, including Geotechnical Practitioner of the Year 2006, and Australian Civil Engineer of the Year 2001. Max is an honorary Professorial Fellow of the University of Melbourne. While retired from full-time work, Max continues to provide consulting services on a casual basis. He and his wife Pru have two Trust for Nature covenanted properties in the Victorian Pyrenees region. Given the growing pressure on the environment, he says there has never been a more important time to protect significant natural areas on private land in Victoria.

Geoff Driver, Deputy Chairman BEc, Grad Dip Finance (from 16 April 2013)

Geoff has been involved in the banking and funds management industry for more than 30 years. He is currently General Manager Business Development and Investor Relations for ASX listed Australian Foundation Investment Company (AFIC) and for other listed investment companies - Djerriwarrh Investments, Mirrabooka Investments and AMCIL Limited. He is a Director of AISC, the company that services these investment companies. Prior to joining AFIC, Geoff was with National Australia Bank in various executive roles and spent three years in the UK. His experience covers strategy development and planning; capital management; new business implementation; and distribution and marketing. Geoff is a strong believer in the advantages of community based participation in the conservation of Australia’s natural environment. His family has a property in the Victorian high country that is benefiting from such an approach. Geoff chairs Trust for Nature’s Finance & Investment and Executive Remuneration committees.

Gayle AustenBA (Media & Communications), Adv Cert App Language (Mandarin), GAICD (Order of Merit) (from 8 December 2015)

Gayle is a communications specialist with extensive experience in strategic communications and community engagement. She has held executive positions at ANZ, Channel Seven, the International CEO Forum and Foster’s Group. Her senior roles in journalism have been based in Australia, China and the UK, including The Economist Intelligence Unit and The Age. She is currently Principal of Gayle Austen Communications and President of Camcare. As a former journalist with specialties in environment and rural affairs, and from a farming family, Gayle has a particular interest in the way agribusiness can positively contribute to the conservation of the environment. She believes there are opportunities to energise and involve farmers in safeguarding our natural heritage for future generations. Gayle chairs Trust for Nature’s Fundraising committee.


Cas BennettoMA (Organisational Communication), NFP Leadership (from 8 December 2015)

Cas has extensive experience across corporate and professional services, not-for-profits, government, the arts and tertiary sectors. She has worked in executive management positions at the Australian British Chamber of Commerce, Charles Darwin University, Australia Council for the Arts, the Museum of Contemporary Art and The Smith Family. She is CEO of the Kimberley Foundation Australia, an organisation dedicated to the research, protection and promotion of Kimberley rock art and culture. A passionate advocate for the protection of Victoria’s native plants and wildlife, she says the world is a better place if we retain and enhance biodiversity. Cas believes Trust for Nature and its protection of nature through conservation covenants are an effective way to achieve those objectives in Victoria.

Dr Charles MeredithBSc (Botany, Genetics), PhD (Zoology/Earth Sciences) (from 8 December 2015)

Charles is an ecologist and consultant with extensive experience in natural systems and conservation planning. After an early career in wildlife research, he founded Biosis Research, Australia’s largest ecological and heritage consulting firm. He was CEO there from 1984 until he retired in 2011. Charles is an inaugural Fellow of the Environment Institute of Australia and New Zealand. He is Chair of the Melbourne Strategic Assessment Land Protection Advisory Group, a member of the Course Advisory Committee for Wildlife and Conservation Biology Degree at La Trobe University, and a Board member of the Victorian Environmental Assessment Council. He says Trust for Nature’s significant role in contributing to the conservation of privately held vegetation and habitat is critical to the long-term conservation of Victoria’s biodiversity.

Dr Gregory Moore OAMBSc (Ed), BSc (Hons), MBA, PhD (from 21 April 2013)

Greg has a general interest in horticultural plant science, revegetation and ecology – with a particular interest in arboriculture. Greg was inaugural president of the International Society of Arboriculture, Australian Chapter and contributed to Australian Standards in pruning and amenity tree evaluation. From 1988 to 2007 he was the principal of Burnley College in the Faculty of Land and Food Resources at the University of Melbourne. Before this he was senior lecturer in Plant Science and Arboriculture. He was Head of the School of Resource Management at the university from 2002 to 2007. He has written two books, contributed to three others and published more than 120 scientific papers and articles. Greg is committed to the preservation of trees, not only for biodiversity but for their positive impact on clean air, human health and as stores of carbon. He was awarded an OAM in the 2017 Queen’s Birthday Honours for services to the environment, particularly arboriculture. Greg chairs Trust for Nature’s Conservation committee.

Amanda NobleMBA, BA, Dip Law (SAB), Dip Leadership & Asian Studies (from 8 December 2015)

Amanda’s experience extends across risk management, investment management, strategy and operational areas including new business integration. She has worked in both the public and private sectors, predominantly in finance, with significant trust management experience. She has held executive and management positions at ANZ, Westpac and National Australia Bank. She is a Member of AICD, IAPP, is a Senior Associate of Finsia, and also graduated from the Chief Executive Women’s leadership program in 2013. Amanda has a particular interest in providing opportunities for individuals to contribute to solving global and local problems. Having attended an agricultural high school, she has long been passionate about sustainable land management balanced with active conservation of habitat and wildlife. Amanda has chaired Trust for Nature’s Audit and Risk committee since August 2016.

BOARD AND EMPLOYEES (continued)


Trustees who retired from the Board during reporting period

Camilla GravesBA, DipEd, Grad Dip AppSc (Horticulture), Grad Dip App Finance, MAICD (21 April 2013 to 20 April 2017)

Camilla joined Trust for Nature’s Board in 2004 and became Chairman in 2010. She has a background in primary production and has worked in education, financial markets (UK), catering, tourism and horticulture.

Sylvia GeddesBA (Hons) (21 April 2013 to 20 April 2017)

Sylvia’s association with Trust for Nature arose from her work in philanthropy, particularly as CEO for eight years of The RE Ross Trust. Before this she was Manager, Charitable Services, ANZ Trustees. Sylvia has also worked at senior levels in the Australian and Victorian public service. She is a board member of Scanlon Family Pty Ltd, the trustee of the Scanlon Foundation, and a

board member of the Council on the Ageing Victoria. She has served as a board member of the State Library of Victoria and a number of not-for-profit organisations including Regional Arts Victoria, VACRO and the Australian Red Cross Victoria.

Dr Mick Lumb OAMBAgSc, PhD (16 April 2013 to 20 April 2017)

Mick has had an extensive career in government and natural resource management. He is the principal of an environmental services consulting firm that specialises in land use policy and strategy development with a strong focus on climate change. During his years in government he was the Director of the Land Conservation Council, various planning, conservation and natural resources divisions, and the Office of the Environment. Mick is a former Chair of the Port Phillip and Westernport Catchment Management Authority and a former member of the Central Coastal Board.

Board and committee meetingsTrust for Nature’s Board of Trustees met four times in the 2016-17 reporting period, as did its four main committees. See attendance details below.

Table 12: Board and committee meetings attendance (na = ‘not applicable’)

Board meetings Audit & Risk committee

meetings

Fundraising committee

meetings

Conservation committee

meetings

Finance & Investment committee

meetingsMax Ervin 4/4 4/4 4/4 4/4 4/4

Geoff Driver 3/4 3/4 3/4 na 4/4

Gayle Austen 3/4 na 4/4 na 4/4

Cas Bennetto 4/4 na 3/4 3/4 na

Sylvia Geddes(retired April 2017)

3/3 3/3 na 2/3 na

Camilla Graves(retired April 2017)

3/3 na 2/3 2/3 na

Mick Lumb(retired April 2017)

3/3 na 2/3 2/3 na

Charles Meredith 4/4 3/4 na 3/4 na

Greg Moore 4/4 na na 3/4 4/4

Amanda Noble 4/4 4/4 na na 4/4

Binda Gokhale(external member of the Audit & Risk committee)

na4/4 na na na

A Special Meeting of the Board was held on 23 August 2016. Attendance: Max Ervin, Geoff Driver, Gayle Austen, Cas Bennetto, Sylvia Geddes, Greg Moore, Amanda Noble. Apologies: Camilla Graves, Mick Lumb, Charles Meredith. The Executive Remuneration committee met on 16 August 2016 and 23 May 2017


Audit and Risk committeeIn 2016-17, Trust for Nature’s Audit and Risk committee comprised the following members:

• Sylvia Geddes (Chairman – until August 2016) (independent member – until August 2016)

• Amanda Noble (Chairman – from September 2016) (independent member)

• Max Ervin (independent member)• Geoff Driver (independent member)• Binda Gokhale (independent external member)• Charles Meredith (independent member)

Key responsibilities of the Audit and Risk committee are to:• review and report independently to the board on the

annual report• assist the board in reviewing the effectiveness of

Trust for Nature’s internal control environment covering: › effectiveness and efficiency of operations › reliability of financial reporting › compliance with applicable laws and regulations

• determine the scope of the internal audit function and ensure its resources are adequate and used effectively, including coordination with the external auditors

• oversee the effective operation of the risk management framework

Members are appointed by the board and are subject to the committee’s terms of reference.

Meetings are held quarterly and at any other time on request of a committee member or the internal or external auditor. In 2016-17, the committee met four times.

Table 13: Trust for Nature staffing statistics by full-time equivalent

30 June 2017

30 June 2016

Regional program staff 25.6 25.1

Commercial services 2.4 2.7

Fundraising 4.4 3.0

Executive and support, policy 6.0 5.6

Other – reserve projects 0.8 0.8

Total 39.2 37.2

Table 14: Trust for Nature staffing statistics by gender (head count)

30 June 2017

30 June 2016

Females 30 29

Males 21 21

Total 51 50

Chief Executive Officer

• Victoria Marles, BA, Dip Ed, Dip Arts, LLB (Hons), LLM, FAICD

Senior Officers

• Chief Finance Officer, Greg Bowers, BBus, CPA• Regional Operations Manager, Anna Foley,

BSc (Hons), Master of Environment• Conservation Science Coordinator, Doug Robinson,

BSc (Hons), PhD (Zoology) • Commercial Services Manager, Chris Cook, BEng,

MA (Env Management)• Fundraising and Marketing Executive Manager,

Leanne Down, BCom (Marketing)• Strategic Projects Manager, Marnie Lassen,

LLB (Hons), BA, GAICD• General Counsel, Alison Gough, BA, LLB• Policy and Research Advisor, Fiona Smith AM, BA,

LLB, MAICD, Grad Dip (Dispute Resolution & Judicial Administration)

• Human Resources Manager, Sally Blackstock, Grad Cert (Career Education & Development)

BOARD AND EMPLOYEES (continued)


ORGANISATIONAL CHART

Board of Trustees

Chief Executive

Officer

Audit & RiskCommittee

Executive Assistant

Policy Advisor

Fundraising and Marketing

Executive Manager

Communications

Communications Coordinator

Project Manager

Development Administration

Officer

Strategic Projects Manager

General Counsel

Conservation Administration

Officer

Conservation Science

Coordinator

GIS Officer

Conservation Planning Advisor

Regional Operations

Manager

Stewardship Coordinator

Regional Operations

Administration Officer

Regional Managers and Staff

Chief Finance Officer

Financial Accountant

Assistant Accountant

Administration Officer

Human Resources Manager

Health & Safety

Advisor

Commercial Services Manager

Conservation Projects

Coordinator

Pimelea Conservation

Officer

Revolving Fund Coordinator


Occupational health and safetyTrust for Nature continues to improve the effectiveness of its Health and Safety Management System in accordance with the requirements of Australian Standard AS/NZS 4801:2001.

A management plan has been developed for the OHS Management System which recognises health and safety goals, objectives and performance indicators. This work plan is being implemented to ensure Trust for Nature complies with its legal and other requirements. The performance indicators are used to ensure Trust for Nature has sufficient capacity to meet the Australian Standard AS/NZS 4801:2001, are consistent with our OHS policies, including a commitment to measure and continually improve health and safety performance.

Occupational health and safety has been integrated into the organisational culture and is a key component of general operations throughout the organisation including managing resources, training and equipment for field-based staff and volunteers.

Major achievements secured in the previous 12 months include improved engagement with staff together with developing of policies and procedures that support the OHS Management System. Other achievements include regular consultation and engagement with staff and volunteers through meetings, intranet, the performance development system and email to increase accountability that reflects Trust for Nature’s commitment to providing a safe workplace.

Regular consultation has also resulted in records and data being accessible via the intranet and a committed Health and Safety committee. Reporting processes to the Audit and Risk committee and the Board enables the timely identification and resolution of hazards, improved understanding of legal and other requirements and implementation of tailored policies and procedures that assist in the continual improvement of the Health and Safety Management System together with meeting the Australian Standards AS/NZS 4801:2001 by staff and management.

Trust for Nature’s occupational health and safety performance against key indicators for the financial year is illustrated in Table 15.

Table 15: Occupational health and safety statistics

2016-17 2015-16 2014-15 2013-14OHS committee meetings

3 3 6 11

Number of reported accidents and near misses received

11 4 7 2

Number of reported injuries received

4 3 0 2

Reports proceeding to WorkSafe claims

0 0 0 1

Average cost per claim

0 0 0 $150

Employment and conduct principlesTrust for Nature has policies and practices that are consistent with the Victorian Public Sector Commission’s employment standards and provide for fair treatment, career opportunities and the early resolution of workplace issues. Trust for Nature has advised its employees on how to avoid conflicts of interest, how to respond to offers of gifts and how it deals with misconduct. The Trust offered free flu vaccinations for all staff in May 2017.

Organisational sustainabilityThis year, Trust for Nature continued to work towards minimising its impact on the environment through measures focusing on office-based activities and transportation, including reducing consumption of energy and paper and increasing recycling and environmentally sound purchases, by utilising shared fleet vehicles and flexicars.

STATUTORY COMPLIANCE


Details of consultancies over $10,000In 2016-17, there were 2 consultancies where the total fees paid to the consultants were $10,000 or greater. Total expenditure during 2016-17 in relation to these consultancies was $33,000 (excluding GST). Details of individual consultancies are outlined below:

Cons

ulta

nt

Purp

ose

of

cons

ulta

ncy

Tota

l app

rove

d pr

ojec

t fee

(ex

GST)

Expe

nditu

re

2016

-17

(ex

GST)

Futu

re e

xpen

ditu

re

(ex

GST)

Ernst & Young

Provision of expert advice for selection of investment manager, and review of invest-ment strategy and policy

$22,500 $22,500 0

Mediawise Pty Ltd

Advice on strategic communications

$10,500 $10,500 0

Details of consultancies under $10,000There were no consultancies under $10,000 in 2016-17.

Major contractsMajor contracts are defined for Victorian Government reporting purposes as greater than $10 million. Trust for Nature did not award any major contracts during 2016-17.

Government advertisingNo government advertising expenditure was incurred by Trust for Nature during the reporting year.

Capital projectsTrust for Nature does not manage any capital projects.

Freedom of Information (FOI)The Freedom of Information Act 1982 allows the public a right of access to documents held by Trust for Nature, which is considered to be a ‘Government Agency’ under the Act. For the 12 months ending 30 June 2017, no FOI applications were received by Trust for Nature.

Making a requestAccess to documents may be obtained through written request to the Freedom of Information Manager or Authorised Officer, 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 which

document is being requested• it should be accompanied by the appropriate

application fee (which may be waived in certain circumstances)

A decision to release information is made by Trust for Nature’s Authorised Officer, Greg Bowers.

FOI requests can be made to: Greg Bowers Chief Finance Officer Trust for Nature 5/379 Collins Street Melbourne VIC 3000 Email: [email protected] Fax: (03) 9614 6999

Requests can also be lodged online at www.foi.vic.gov.au

A valid request must be made in writing to the Authorised Officer, accompanied by a $28.40 application fee (as at the time of this report’s publication) and including such information as is reasonably necessary to enable the documents to be identified.

Further information regarding Freedom of Information can be found at www.foi.vic.gov.au

Compliance with the Building Act 1993Trust for Nature meets the compliance conditions of the Building Act 1993 with respect to the building and maintenance activities of buildings owned by Trust for Nature.


Compliance with the Protected Disclosures Act 2012The Protected Disclosures Act 2012 enables people to make disclosures about improper conduct by public officers and public bodies. The Act aims to ensure openness and accountability by encouraging people to make disclosures and protecting them when they do.

What is a protected disclosure?A protected disclosure is a complaint of corrupt or improper conduct by a public officer or a public body. Trust for Nature is a “public body” for the purposes of the Act.

What is ‘improper or corrupt conduct’?Improper or corrupt conduct involves substantial:• mismanagement of public resources; or• risk to public health or safety or the environment; or• corruptionThe conduct must be criminal in nature or a matter for which an officer could be dismissed.

How do I make a ‘Protected Disclosure’?You can make a protected disclosure about Trust for Nature or its board members, officers or employees by contacting Independent Broad-Based Anti-Corruption Commission via the contact details provided below. Please note that Trust for Nature is not able to receive protected disclosures.

Contacts for Protected Disclosure Independent Broad-Based Anti-Corruption Commission (IBAC) Victoria

Address: Level 1, North Tower 459 Collins Street Melbourne Victoria 3000

Mail: IBAC GPO Box 24234 Melbourne Victoria 3001

Internet: www.ibac.vic.gov.au

Email: See the website above for the secure email disclosure process, which also provides for anonymous disclosures

National competition policyCompetitive neutrality seeks to enable fair competition between government and private sector businesses. Advantages that government businesses may experience, simply as a result of government ownership, should be neutralised. Trust for Nature continues to implement and apply this principle in its business undertakings. Trust for Nature complies with the Competitive Neutrality Policy Victoria Statement issued in June 1996.

Local Jobs First - Victorian Industry Participation Policy (VIPP)The Victorian Industry Participation Policy Act 2003 requires Departments and public sector bodies to report on the implementation of the Local Jobs First – Victorian Industry Participation Policy (Local Jobs First – VIPP). Departments and public sector bodies are required to apply the Local Jobs First - 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. Trust for Nature has not commenced or completed any contracts during 2016-17 to which Local Jobs First - VIPP applied.

Risk management attestationI, Max Ervin, Chairman, certify that Trust for Nature (Victoria) has complied with the Ministerial Standing Direction 3.7.1 – Risk management framework and processes. The Trust for Nature Audit and Risk Committee has verified this.

Max Ervin Chairman 22 August 2017

Responsible body declarationIn accordance with the Financial Management Act 1994, I am pleased to present Trust for Nature’s Annual Report for the year ending 30 June 2017.

Max Ervin Chairman 22 August 2017

STATUTORY COMPLIANCE (continued)


Availability of other informationOther information to be made available upon request (subject to the Freedom of Information Act 1982) is as follows:

• a statement that declarations of pecuniary interests were duly completed by all relevant officers

• details of shares held in subsidiaries• details of publications produced and how these can

be obtained• details of changes in prices, fees, charges, rates and

levies charged• details of any major external reviews• details of major research and development activities• details of overseas visits• details of major promotional, public relations and

marketing activities

• details of assessments and measures undertaken to improve occupational health and safety of employees

• a general statement on industrial relations, and details of time lost through industrial accidents and disputes

• a list of major committees; the purpose of each committee; and the extent to which the purposes have been achieved

• details of all consultancies and contractorsThe information is available on request from:

Chief Finance Officer Trust for Nature Level 5/379 Collins Street Melbourne VIC 3000

Details of Information and Communication Technology (ICT) expenditureNOTE: In 2016-17, the Trust had a total ICT expenditure of $289,000. See below.

($ thousands)Business As Usual ICT expenditure

Non Business As Usual ICT expenditure

Operational expenditure Capital expenditure

Total Total Operational and Capital

230 59 32 27

Disclosure of grants and transfer paymentsTrust for Nature made the following payments in 2016-17:

Offset agreements

Total amount Recipients

$3,082,780 39 private landowners under 116 agreements

These are payments, provided by offset credit purchasers, made to landowners under biodiversity offset agreements to meet approvals under Victorian and Commonwealth legislation. Annual payments are made to landowners upon meeting the requirements of an agreed management plan. In addition, payments to landowners are made when surplus offset credits are traded.

Incentive programs

Total amount Recipients$164,047 14 private landowners

These are payments made to landowners under government incentive programs and administered under land management agreements to achieve improved on-ground biodiversity outcomes.


DISCLOSURE INDEXThe Annual Report of Trust for Nature is prepared in accordance with all relevant Victorian legislation and pronouncements. This index identifies the Trust’s compliance with statutory disclosure requirements.Legislation Requirement Page referenceMinisterial Directions & Financial Reporting DirectionsCharter and purposeFRD 22H Manner of establishment and relevant Minister Page 4FRD 22H Purpose, functions, powers and duties Page 4-5FRD 22H Nature and range of services provided Page 6-8FRD 22H Operational objectives and outcomes Page 9-10FRD 22H Key initiatives and projects Page 11-18Management and structureFRD 22H Governing board Page 25-28FRD 22H Board committee structure Page 27SD 3.2.1 Audit committee membership and role Page 28FRD 22H Organisational structure Page 29FRD 21C Executive Officer data and disclosure Page 85FRD 29B Workforce data Page 28Other informationFRD 10A Disclosure index Page 34FRD 25C Victorian Industry Participation Policy disclosure Page 32FRD 22H Statement on National Competition Policy Page 32FRD 22H Occupational health and safety Page 30FRD 22H Employment and conduct principles Page 30FRD 22H Application and operation of Freedom of Information Act 1982 Page 31FRD 22H Application and operation of the Protected Disclosure Act 2012 Page 32FRD 22H Compliance with Building Act 1993 Page 31FRD 24C Office based environmental impacts Page 30FRD 22H Statement of availability of other information Page 33FRD 30D Standard requirements for print and design of annual reports Entire documentFinancial informationFRD 22H Summary of the financial results for the year Page 23FRD 22H Consultancies over $10,000 Page 31FRD 22H Consultancies under $10,000 Page 31FRD 12B Disclosure of major contracts Page 31FRD 22H Disclosure of government advertising expenditure Page 31FRD 22H Disclosure of capital projects Page 31FRD 22H Disclosure of grants and transfer payments Page 33FRD 22H Disclosure of ICT expenditure Page 33FRD 22H Significant changes in financial position during the year Page 23FRD 22H Major changes or factors affecting performance Page 23FRD 22H Subsequent events Page 23Compliance attestation and declarationSD 5.2.3 Declaration in report of operations Page 32SD 5.2.2 Declaration in financial statements Page 35SD 3.7.1 Risk management attestation Page 32Other requirements under Standing Directions 5.2SD 5.2.1 (a) Compliance with Australian accounting standards and other authoritative pronouncements Page 35SD 5.2.1 (a) Compliance with Ministerial Directions Page 35SD 5.2.1 (b) Compliance with Model Financial Report Page 35-90LegislationVictorian Conservation Trust Act 1972 Page 4-5Freedom of Information Act 1982 Page 31Building Act 1993 Page 31Protected Disclosure Act 2012 Page 32Victorian Industry Participation Policy Act 2003 Page 32Financial Management Act 1994 Page 35


DECLARATION IN THE FINANCIAL STATEMENTS

The attached financial statements for Trust for Nature (Victoria) have been prepared in accordance with StandingDirection 5.2 of the Standing Directions of the Minister of Finance under the Financial Management Act 1994,Australian Charities and Not-for-profit Commission Act 2012, the Australian Charities and Not-for-profit CommissionRegulations 2013, applicable Financial Reporting Directions, Australian Accounting Standards includingInterpretations, 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 accompanying notes, gives a true and fair view of thefinancial transactions during the year ended 30 June 2017 and financial position of the Trust at 30 June 2017.

At the time of signing, we are not aware of any circumstance which would render any particulars included in thefinancial statements to be misleading or inaccurate.

We authorise the attached financial statements for issue on 7 September 2017.

Greg BowersChief Finance OfficerTrust for Nature

Melbourne

7 September 2017

Victoria MarlesChief Executive OfficerTrust for Nature

Melbourne

7 September 2017

Amanda NobleTrusteeTrust for Nature

Melbourne

7 September 2017

FINANCIALS


Auditor’s responsibilities for the audit of the financial report

As required by the Audit Act 1994, my responsibility is to express an opinion on the financial report based on the audit. My objectives for the audit are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit. I also:

identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the trust’s internal control

evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustees

conclude on the appropriateness of the Trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the trust’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the trust to cease to continue as a going concern.

evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

I communicate with the Trustees regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

I also provide the Trustees with a statement that I have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on my independence, and where applicable, related safeguards.

MELBOURNE 8 September 2017

Roberta Skliros as delegate for the Auditor-General of Victoria


Trust for Nature (Victoria) financial statements

Comprehensive operating statementFor the financial year ended 30 June 2017

Notes 2017 2016

$ $Continuing operations

Income from transactions

Grant income 2(a) 4,278,751 3,386,692

Interest on investments 2(b) 854,116 920,276

Dividends 2(c) 159,473 206,217

Donations 2(d) 949,207 1,394,535

Fair value of services received free of charge or for nominal consideration 2(e) 5,518 45,720

Other income 2(f) 530,703 446,910

Total income from transactions 6,777,768 6,400,350

Expenses from transactions

Employee benefits 3(a) (3,502,692) (3,398,635)

Depreciation & amortisation 3(b) (280,424) (277,817)

Conservation, covenant and stewardship programs 3(c) (1,058,487) (756,151)

Payments from appeals and other reserves with specified purpose 3(d) (433,348) (236,356)

Other operating expenses 3(e) (2,247,434) (1,981,906)

Total expenses from transactions (7,522,385) (6,650,865)

Net result from transactions (net operating balance) (744,617) (250,515)

Other economic flows included in net result

Net gain/(loss) on non-financial assets (i) 4(a) 9,608 1,400

Net gain/(loss) on financial instruments (ii) 4(b) 264,826 2,135

Total other economic flows included in net result 274,434 3,535

Net result (470,183) (246,980)

Other economic flows - other comprehensive income

Items that will not be reclassified to net result

Changes in physical asset revaluation surplus 20 (766,900) 1,960,897

Total other economic flows - other comprehensive income (766,900) 1,960,897

Comprehensive result (1,237,083) 1,713,917

The accompanying notes form part of these financial statements.

Notes:(i) 'Net gain/(loss) on non-financial assets' includes unrealised and realised gains/(losses) from revaluations, impairments, and disposals ofall physical assets and intangible assets, except when these are taken through the asset revaluation surplus.

(ii) 'Net gain/(loss) on financial instruments' includes unrealised and realised gains/(losses) from revaluations, impairments and reversals ofimpairment, and gains/(losses) from disposals of financial instruments.

Page 5


Balance sheetAs at 30 June 2017

Notes 2017 2016

$ $Assets

Financial assets

Cash and deposits 19 4,723,575 1,888,430

Receivables 5 1,136,886 2,021,624

Investments and other financial assets 6 32,368,128 33,288,188

Other assets 7 223,880 100,022

Total financial assets 38,452,469 37,298,264

Non-financial assets

Non-financial physical assets classified as held for sale 8 1,574,972 1,382,505

Property, plant and equipment 9 19,804,614 20,556,064

Intangible assets 10 302,929 177,351

Total non-financial assets 21,682,515 22,115,920

Total assets 60,134,984 59,414,184

Liabilities

Payables 11 805,158 1,018,234

Borrowings 12 34,912 38,279

Provisions 13 1,304,310 1,042,748

Other liabilities 14 24,646,615 22,733,851

Total liabilities 26,790,995 24,833,112

Net assets 33,343,989 34,581,072

Equity

Accumulated surplus 21 12,135,301 11,805,976

Reserves 20 21,108,688 22,675,096

Contributed capital 100,000 100,000

Net Worth 33,343,989 34,581,072

Commitments for expenditure 16 45,609 60,837

Contingent liabilities and contingent assets 17 0 0


Page 6


Cash flow statementFor the financial year ended 30 June 2017

Notes 2017 2016

$ $Cash flows from operating activities

Receipts

State Government - Operating grant 1,485,000 793,301

GST recovered from the ATO 314,020 252,396

Interest received 938,505 852,303

Donations, grants and other receipts 5,861,297 3,827,577

Total receipts 8,598,822 5,725,577

Payments

Payments to employees (3,460,380) (3,329,095)

Payments to suppliers (3,604,221) (2,776,358)

Interest paid to landowners (450,054) (399,574)

GST paid to the ATO (464,020) (388,364)

Total payments (7,978,675) (6,893,391)

Net cash flows from/(used in) operating activities 19(b) 620,147 (1,167,814)

Cash flows from investing activities

Proceeds from sale of non-financial assets 0 2,400

Proceeds from other liabilities 4,202,293 3,932,273

Proceeds from financial assets 1,389,329 1,261,694

Payments for non-financial assets, land and buildings (66,440) (589,770)

Payments to landowners (2,825,806) (3,314,824)

Payments for fixed assets (163,803) (10,719)

Payments for intangible assets (191,208) 0

Payments for financial assets (126,000) 0

Net cash flows from/(used in) investing activities 2,218,365 1,281,054

Cash flows from financing activities

Repayment of finance leases (3,367) (7,074)

Net cash flows from/(used in) financing activities (3,367) (7,074)

Net increase/(decrease) in cash and cash equivalents 2,835,145 106,166

Cash and cash equivalents at the beginning of the financial year 1,888,430 1,782,264

Cash and cash equivalents at the end of the financial year 19(a) 4,723,575 1,888,430


Page 7


Stat

emen

t of c

hang

es in

equ

ityFo

r the

fina

ncia

l yea

r end

ed 3

0 Ju

ne 2

017

Phys

ical

ass

etre

valu

atio

nsu

rplu

sD

onat

ions

rese

rve

Cov

enan

tst

ewar

dshi

pre

serv

ePr

oper

ties

rese

rve

Beq

uest

rese

rve

Acc

umul

ated

surp

lus

Con

trib

uted

capi

tal

Tota

lB

alan

ce a

t 1 J

uly

2015

13,6

08,8

094,

168,

940

1,53

3,37

640

6,24

81,

952,

056

11,0

97,7

2610

0,00

032

,867

,155

Net

resu

lt fo

r the

yea

r0

00

00

(246

,980

)0

(246

,980

)

Oth

er c

ompr

ehen

sive

inco

me

for t

he y

ear

1,96

0,89

70

00

00

01,

960,

897

Tran

sfer

to /

(from

) res

erve

s0

(747

,552

)47

,355

0(2

55,0

33)

955,

230

00

Bal

ance

at 3

0 Ju

ne 2

016

15,5

69,7

063,

421,

388

1,58

0,73

140

6,24

81,

697,

023

11,8

05,9

7610

0,00

034

,581

,072

Net

resu

lt fo

r the

yea

r0

00

00

(470

,183

)0

(470

,183

)

Oth

er c

ompr

ehen

sive

inco

me

for t

he y

ear

(766

,900

)0

00

00

0(7

66,9

00)

Tran

sfer

to /

(from

) res

erve

s0

(337

,158

)(3

,405

)0

(458

,945

)79

9,50

80

0

Bal

ance

at 3

0 Ju

ne 2

017

14,8

02,8

063,

084,

230

1,57

7,32

640

6,24

81,

238,

078

12,1

35,3

0110

0,00

033

,343

,989

The

stat

emen

t of c

hang

es in

equ

ity s

houl

d be

read

in c

onju

nctio

n w

ith th

e no

tes

to th

e fin

anci

al s

tate

men

ts.

Page

8


Notes to the financial statements

Note 1 Summary of significant accounting policies .......................................................................... 44

Note 2 Income from transactions...................................................................................................... 58

Note 3 Expenses from transactions.................................................................................................. 59

Note 4 Other economic flows............................................................................................................ 59

Note 5 Receivables........................................................................................................................... 60

Note 6 Investments and other financial assets................................................................................. 60

Note 7 Other assets .......................................................................................................................... 61

Note 8 Non-financial assets classified as held for sale .................................................................... 61

Note 9 Property, plant and equipment .............................................................................................. 62

Note 10 Intangible assets .................................................................................................................. 68

Note 11 Payables............................................................................................................................... 68

Note 12 Borrowings ........................................................................................................................... 69

Note 13 Provisions............................................................................................................................. 69

Note 14 Other liability disclosures ..................................................................................................... 71

Note 15 Leases.................................................................................................................................. 72

Note 16 Commitments for expenditure .............................................................................................. 72

Note 17 Contingent assets and contingent liabilities ......................................................................... 73

Note 18 Financial instruments ........................................................................................................... 73

Note 19 Cash flow information........................................................................................................... 83

Note 20 Reserves .............................................................................................................................. 84

Note 21 Accumulated surplus............................................................................................................ 85

Note 22 Responsible persons............................................................................................................ 85

Note 23 Remuneration of executives................................................................................................. 86

Note 24 Related parties ..................................................................................................................... 86

Note 25 Ex-gratia expenses .............................................................................................................. 87

Note 26 Remuneration of auditors..................................................................................................... 87

Note 27 Subsequent events .............................................................................................................. 87

Note 28 Glossary of terms ................................................................................................................. 88


Notes to the financial statementsFor the financial year ended 30 June 2017

Note 1 Summary of significant accounting policies

These annual financial statements represent the audited general purpose financial statements for the Trust for Nature (Victoria) (theTrust) for the period ended 30 June 2017. The purpose of the report is to provide users with information about the Trust’s stewardshipof resources entrusted to it.

(A) Statement of compliance

These general purpose financial statements have been prepared in accordance with the Financial Management Act 1994 (FMA),Australian Charities and Not-for-profit Commission Act 2012, the Australian Charities and Not-for-profit Commission Regulations2013 and applicable Australian Accounting Standards (AAS) which include Interpretations, issued by the Australian AccountingStandards Board (AASB).

Where appropriate, those AAS paragraphs 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 conceptsof 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 28.

The annual financial statements were authorised for issue by the Board of Trustees for the Trust on the 7th of September 2017.

(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 notreadily apparent from other sources. The estimates and associated assumptions are based on professional judgements derived fromhistorical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differfrom these estimates.

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

the fair value of land, buildings, leasehold improvements, plant and equipment and motor vehicles, (refer to Note 1(K)); and 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(L)).

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

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

managed investment schemes, which are measured at fair value with changes reflected in the comprehensive operatingstatement (fair value through profit and loss);

certain liabilities, most notably provisions and other liabilities; and

available-for-sale investments which are measured at fair value with movements reflected in ‘other economic flows – othercomprehensive income’.

Consistent with AASB 13 Fair Value Measurement, the Trust determines the policies and procedures for both recurring fair valuemeasurements such as property, plant and equipment, investment properties and financial instruments and for non-recurring fairvalue measurements such as non-financial physical assets held for sale, in accordance with the requirements of AASB 13 and therelevant Financial Reporting Directions.

Page 11

Note 1 Summary of significant accounting policies (continued)

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair valuehierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly orindirectly observable; and

Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement isunobservable.

For the purpose of fair value disclosures, the Trust has determined classes of assets and liabilities on the basis of the nature,characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

In addition, the Trust determines whether transfers have occurred between levels in the hierarchy by reassessing categorisation(based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

The Valuer-General Victoria (VGV) is the Trust’s independent valuation agency.

The Trust, in conjunction with VGV, monitors changes in the fair value of each asset through relevant data sources to determinewhether revaluation is required.

(C) Reporting entity

The financial statements cover Trust for Nature (Victoria) as an individual reporting entity. The Trust is a body corporate establishedunder the Victorian Conservation Trust Act 1972 (the Act). Its principal address is:

Level 5, 379 Collins StreetMelbourne VIC 3000

The financial statements include all the controlled activities of the Trust.

Objectives and fundingUnder the Act, the Trust’s objectives are to:

conserve areas which are ecologically significant, of natural interest or beauty, or of historical interest; conserve wildlife and native plants; conserve and create areas for scientific study; and encourage and assist in the conservation and creation of areas of natural beauty or interest for recreation and/or

educational use by the public.

The objectives under the Act form the basis of the goals and operations of the Trust.

Trust for Nature has five goals for driving nature conservation and operational excellence: maximise the biodiversity outcomes of nature conservation actions; protect and manage land for biodiversity; achieve growth and excellence in its business; encourage investment in nature conservation; and capture new opportunities for achieving biodiversity gains.

The Trust obtains its funding from a number of sources including State and Commonwealth Governments, donations and bequests,investment income and the sale of goods and services.

(D) Scope and presentation of financial statements

Comprehensive operating statement

The comprehensive operating statement comprises three components, being ‘net result from transactions’ (or termed as ‘netoperating balance’), ‘other economic flows included in net result’, as well as ‘other economic flows – other comprehensive income’.The sum of the former two, together with the net result from discontinued operations, represents the net result.

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



All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair valuehierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly orindirectly observable; and

Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement isunobservable.

For the purpose of fair value disclosures, the Trust has determined classes of assets and liabilities on the basis of the nature,characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

In addition, the Trust determines whether transfers have occurred between levels in the hierarchy by reassessing categorisation(based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

The Valuer-General Victoria (VGV) is the Trust’s independent valuation agency.

The Trust, in conjunction with VGV, monitors changes in the fair value of each asset through relevant data sources to determinewhether revaluation is required.

(C) Reporting entity

The financial statements cover Trust for Nature (Victoria) as an individual reporting entity. The Trust is a body corporate establishedunder the Victorian Conservation Trust Act 1972 (the Act). Its principal address is:

Level 5, 379 Collins StreetMelbourne VIC 3000

The financial statements include all the controlled activities of the Trust.

Objectives and fundingUnder the Act, the Trust’s objectives are to:

conserve areas which are ecologically significant, of natural interest or beauty, or of historical interest; conserve wildlife and native plants; conserve and create areas for scientific study; and encourage and assist in the conservation and creation of areas of natural beauty or interest for recreation and/or

educational use by the public.

The objectives under the Act form the basis of the goals and operations of the Trust.

Trust for Nature has five goals for driving nature conservation and operational excellence: maximise the biodiversity outcomes of nature conservation actions; protect and manage land for biodiversity; achieve growth and excellence in its business; encourage investment in nature conservation; and capture new opportunities for achieving biodiversity gains.

The Trust obtains its funding from a number of sources including State and Commonwealth Governments, donations and bequests,investment income and the sale of goods and services.

(D) Scope and presentation of financial statements

Comprehensive operating statement

The comprehensive operating statement comprises three components, being ‘net result from transactions’ (or termed as ‘netoperating balance’), ‘other economic flows included in net result’, as well as ‘other economic flows – other comprehensive income’.The sum of the former two, together with the net result from discontinued operations, represents the net result.

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



This classification is consistent with the whole of government reporting format and is allowed under AASB 101 Presentation ofFinancial Statements.

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 are disclosed in the notes, where relevant. In general, non-current assets or liabilitiesare expected to be recovered or settled more than 12 months after the reporting period, except for the provisions of employeebenefits, which are classified as current liabilities if the Trust does not have the unconditional right to defer settlement of the liabilitieswithin 12 months after the end of the reporting period.

Cash flow statement

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

Statement of changes in equityThe statement of changes in equity presents reconciliations of non-owner and owner changes in equity from opening balances atthe beginning of the reporting period to the closing balances at the end of the reporting period. It also shows separately changes dueto amounts recognised in the ‘Comprehensive result’ and amounts related to ‘Transactions with owner in its capacity as owner’.

RoundingAmounts in the financial statements have been rounded to the nearest dollar.

(E) Changes in accounting policies

Subsequent to the 2015-16 reporting period, no new or revised Standards have been adopted in the current period that resulted ina financial or accounting policy impact.

(F) Income from transactions

Income is recognised to the extent that it is probable that the economic benefits will flow to the entity and the income can be reliablymeasured at fair value.

InterestInterest income is recognised on a time proportionate basis that takes into account the effective yield on the financial asset.

Interest income includes interest received on bank term deposits and other investments.

Net realised and unrealised gains and losses on the revaluation of investments do not form part of income from transactions, but arereported 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.

Sales of goods and servicesIncome from the supply of services

Income from the provision of services is recognised by reference to the stage of completion of the contract. The income is recognisedwhen the amount of the income, stage of completion and transaction costs incurred can be reliably measured, and it is probable thatthe economic benefits associated with the transaction will flow to the entity.

The stage of completion is measured by reference to completion of milestones.Income from sale of goodsIncome from the sale of goods is recognised when: the significant risks and rewards of ownership of the goods have transferred to the buyer; the Trust retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control

over the goods sold; the amount of income can be reliably measured; it is probable that the economic benefits associated with the transaction will flow to the Trust; and costs incurred or to be incurred in respect of the transaction can be measured reliably.

Page 13


GrantsGrants are recognised as income when the Trust gains control of the underlying assets in accordance with AASB 1004 Contributions.For reciprocal grants, the Trust is deemed to have assumed control when the performance has occurred under the grant. For non-reciprocal grants, the Trust is deemed to have assumed control when the grant is received or receivable. Conditional grants may bereciprocal or non-reciprocal depending on the terms of the grant.

Fair value of assets and services received free of charge or for nominal considerationIf applicable, material contributions of resources received free of charge or for nominal consideration are recognised at their fair valuewhen the transferee obtains control over them, irrespective of whether restrictions or conditions are imposed over the use of thecontributions, unless received from another government department or agency as a consequence of a restructuring of administrativearrangements. In the latter case, such a transfer will be recognised at carrying value. Contributions in the form of services are onlyrecognised when fair value can be reliably determined and the services would have been purchased if not donated.

Other incomeDividend income

Dividend revenue is recognised when the right to receive payment is established.

Donation income

Donation revenue is recognised when the cash is received. Donations and bequests of shares and properties are brought to accountat their values on the date of transfer.

(G) Expenses from transactions

Expenses from transactions are recognised as they are incurred, and reported in the financial year to which they relate.

Employee expenses

These expenses include all costs related to employment including wages and salaries, fringe benefits tax, leave entitlements,redundancy payments and WorkCover premiums.Superannuation – State superannuation defined benefit plansThere are no defined benefit superannuation contribution plans.

Depreciation and amortisation

All infrastructure assets, buildings, plant and equipment and other non-current physical assets (excluding items under operatingleases, assets held-for-sale and investment properties) that have a limited useful life are depreciated. Depreciation is generallycalculated on a straight-line basis, at rates that allocate the asset’s value, less any estimated residual value, over its estimated usefullife.

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

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

Asset class Useful lifeBuildings 40 yearsFencing 20 yearsLeasehold improvements Minimum lease termPlant and equipment 3 to 10 yearsVehicles 7 to 10 yearsIntangible non-produced assets - software 3 to 5 years

Land which is considered to have an indefinite life is not depreciated. Depreciation is not recognised in respect of such assets astheir service potential has not, in any material sense, been consumed during the reporting period.

The consumption of intangible non-produced assets with finite useful lives is not classified as a transaction, but as amortisation.Consequently, the amortisation is included as an other economic flow in the net result.



GrantsGrants are recognised as income when the Trust gains control of the underlying assets in accordance with AASB 1004 Contributions.For reciprocal grants, the Trust is deemed to have assumed control when the performance has occurred under the grant. For non-reciprocal grants, the Trust is deemed to have assumed control when the grant is received or receivable. Conditional grants may bereciprocal or non-reciprocal depending on the terms of the grant.

Fair value of assets and services received free of charge or for nominal considerationIf applicable, material contributions of resources received free of charge or for nominal consideration are recognised at their fair valuewhen the transferee obtains control over them, irrespective of whether restrictions or conditions are imposed over the use of thecontributions, unless received from another government department or agency as a consequence of a restructuring of administrativearrangements. In the latter case, such a transfer will be recognised at carrying value. Contributions in the form of services are onlyrecognised when fair value can be reliably determined and the services would have been purchased if not donated.

Other incomeDividend income

Dividend revenue is recognised when the right to receive payment is established.

Donation income

Donation revenue is recognised when the cash is received. Donations and bequests of shares and properties are brought to accountat their values on the date of transfer.

(G) Expenses from transactions

Expenses from transactions are recognised as they are incurred, and reported in the financial year to which they relate.

Employee expenses

These expenses include all costs related to employment including wages and salaries, fringe benefits tax, leave entitlements,redundancy payments and WorkCover premiums.Superannuation – State superannuation defined benefit plansThere are no defined benefit superannuation contribution plans.

Depreciation and amortisation

All infrastructure assets, buildings, plant and equipment and other non-current physical assets (excluding items under operatingleases, assets held-for-sale and investment properties) that have a limited useful life are depreciated. Depreciation is generallycalculated on a straight-line basis, at rates that allocate the asset’s value, less any estimated residual value, over its estimated usefullife.

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

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

Asset class Useful lifeBuildings 40 yearsFencing 20 yearsLeasehold improvements Minimum lease termPlant and equipment 3 to 10 yearsVehicles 7 to 10 yearsIntangible non-produced assets - software 3 to 5 years

Land which is considered to have an indefinite life is not depreciated. Depreciation is not recognised in respect of such assets astheir service potential has not, in any material sense, been consumed during the reporting period.

The consumption of intangible non-produced assets with finite useful lives is not classified as a transaction, but as amortisation.Consequently, the amortisation is included as an other economic flow in the net result.



Interest expense

Interest expense represents costs incurred in connection with interest bearing liabilities.

Interest expenses are recognised in the period in which they are incurred. Refer to Note 28 for an explanation of interest expenseitems.

Other operating expenses

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

Supplies and services

Supplies and services expenses are recognised as an expense in the reporting period in which they are incurred.

(H) Other economic flows included in net result

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

Net gain/(loss) on non-financial assets

Net 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(K) Revaluations of non-financial physical assets.

Net gain/(loss) on disposal of non-financial assets

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

Amortisation of non-produced intangible assets (refer Note 1(K)).

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

Impairment of non-financial assets

All assets are assessed annually for indications of impairment except for:

financial assets (refer Note 1(J));

non-financial physical assets held for sale (refer Note 1(K));

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

If there is an indication that there has been a reversal in the estimate of an asset’s recoverable amount since the last impairmentloss was recognised, the carrying amount shall be increased to its recoverable amount. The impairment loss is reversed only to theextent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciationor amortisation, if no impairment loss had 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 replacedunless a specific decision to the contrary has been made. The recoverable amount for most assets is measured at the higher ofdepreciated replacement cost and fair value less costs to sell. Recoverable amount for assets held primarily to generate net cashinflows is measured at the higher of the present value of future cash flows expected to be obtained from the asset and fair value lesscosts to sell.

Page 15


Net gain/(loss) on financial instruments

Net gain/(loss) on financial instruments includes realised and unrealised gains and losses from revaluations of financial instrumentsthat are designated at fair value through profit or loss or held-for-trading, impairment and reversal of impairment for financialinstruments at amortised cost, and disposals of financial assets.

Revaluations of financial instruments at fair value

The revaluation gain/(loss) on financial instruments at fair value excludes dividends or interest earned on financial assets, which isreported as part of income from transactions.

Other gains/(losses) from other economic flows

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

transfer of amounts from the reserves and/or accumulated surplus to net result due to disposal or derecognition orreclassification; and

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

(I) Financial instruments

Financial instruments arise out of contractual agreements that give rise to a financial asset of one entity and a financial l iability orequity instrument of another entity. Due to the nature of the Trust’s activities, certain financial assets and financial liabilities ariseunder statute rather than a contract. Such financial assets and financial liabilities do not meet the definition of financial instrumentsin AASB 132 Financial Instruments: Presentation. For example, statutory receivables arising from taxes, fines and penalties do notmeet the definition of financial instruments as they do not arise under contract.

Where relevant, for note disclosure purposes, a distinction is made between those financial assets and financial liabilities that meetthe 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(J)), term deposits with maturity greater than threemonths, trade receivables, loans and other receivables, but not statutory receivables.

Financial assets and liabilities at fair value through profit and loss

Financial assets are categorised as fair value through profit or loss at trade date if they are classified as held for trading or designatedas such upon initial recognition. Financial instrument assets are designated at fair value through profit or loss on the basis that thefinancial assets form part of a group of financial assets that are managed by the entity concerned based on their fair values, andhave their performance evaluated in accordance with documented risk management and investment strategies.

Financial instruments at fair value through profit or loss are initially measured at fair value and attributable transaction costs areexpensed as incurred. Subsequently, any changes in fair value are recognised in the net result as other economic flows. Any dividendor interest on a financial asset is recognised in the net result from transactions.

Financial assets and liabilities at fair value through profit or loss include the majority of the Trust’s equity investments and managedinvestment schemes.

Financial liabilities at amortised cost

Financial instrument liabilities are initially recognised on the date they are originated. They are initially measured at fair value plusany directly attributable transaction costs. Subsequent to initial recognition, these financial instruments are measured at amortisedcost with any difference between the initial recognised amount and the redemption value being recognised in profit and loss over theperiod of the interest-bearing liability, using the effective interest rate method (refer to Note 28).



Interest expense

Interest expense represents costs incurred in connection with interest bearing liabilities.

Interest expenses are recognised in the period in which they are incurred. Refer to Note 28 for an explanation of interest expenseitems.

Other operating expenses

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


Supplies and services expenses are recognised as an expense in the reporting period in which they are incurred.

(H) Other economic flows included in net result

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

Net gain/(loss) on non-financial assets

Net 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(K) Revaluations of non-financial physical assets.

Net gain/(loss) on disposal of non-financial assets

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

Amortisation of non-produced intangible assets (refer Note 1(K)).

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

Impairment of non-financial assets

All assets are assessed annually for indications of impairment except for:

financial assets (refer Note 1(J));

non-financial physical assets held for sale (refer Note 1(K));

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

If there is an indication that there has been a reversal in the estimate of an asset’s recoverable amount since the last impairmentloss was recognised, the carrying amount shall be increased to its recoverable amount. The impairment loss is reversed only to theextent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciationor amortisation, if no impairment loss had 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 replacedunless a specific decision to the contrary has been made. The recoverable amount for most assets is measured at the higher ofdepreciated replacement cost and fair value less costs to sell. Recoverable amount for assets held primarily to generate net cashinflows is measured at the higher of the present value of future cash flows expected to be obtained from the asset and fair value lesscosts to sell.

Page 15


Net gain/(loss) on financial instruments

Net gain/(loss) on financial instruments includes realised and unrealised gains and losses from revaluations of financial instrumentsthat are designated at fair value through profit or loss or held-for-trading, impairment and reversal of impairment for financialinstruments at amortised cost, and disposals of financial assets.

Revaluations of financial instruments at fair value

The revaluation gain/(loss) on financial instruments at fair value excludes dividends or interest earned on financial assets, which isreported as part of income from transactions.

Other gains/(losses) from other economic flows

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

transfer of amounts from the reserves and/or accumulated surplus to net result due to disposal or derecognition orreclassification; and

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

(I) Financial instruments

Financial instruments arise out of contractual agreements that give rise to a financial asset of one entity and a financial l iability orequity instrument of another entity. Due to the nature of the Trust’s activities, certain financial assets and financial liabilities ariseunder statute rather than a contract. Such financial assets and financial liabilities do not meet the definition of financial instrumentsin AASB 132 Financial Instruments: Presentation. For example, statutory receivables arising from taxes, fines and penalties do notmeet the definition of financial instruments as they do not arise under contract.

Where relevant, for note disclosure purposes, a distinction is made between those financial assets and financial liabilities that meetthe 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(J)), term deposits with maturity greater than threemonths, trade receivables, loans and other receivables, but not statutory receivables.

Financial assets and liabilities at fair value through profit and loss

Financial assets are categorised as fair value through profit or loss at trade date if they are classified as held for trading or designatedas such upon initial recognition. Financial instrument assets are designated at fair value through profit or loss on the basis that thefinancial assets form part of a group of financial assets that are managed by the entity concerned based on their fair values, andhave their performance evaluated in accordance with documented risk management and investment strategies.

Financial instruments at fair value through profit or loss are initially measured at fair value and attributable transaction costs areexpensed as incurred. Subsequently, any changes in fair value are recognised in the net result as other economic flows. Any dividendor interest on a financial asset is recognised in the net result from transactions.

Financial assets and liabilities at fair value through profit or loss include the majority of the Trust’s equity investments and managedinvestment schemes.

Financial liabilities at amortised cost

Financial instrument liabilities are initially recognised on the date they are originated. They are initially measured at fair value plusany directly attributable transaction costs. Subsequent to initial recognition, these financial instruments are measured at amortisedcost with any difference between the initial recognised amount and the redemption value being recognised in profit and loss over theperiod of the interest-bearing liability, using the effective interest rate method (refer to Note 28).



Financial instrument liabilities measured at amortised cost include all of the Trust’s contractual payables and interest-bearingarrangements other than those designated at fair value through profit or loss.

(J) Financial assets

Cash and deposits

Cash and deposits recognised on the balance sheet comprise cash on hand and cash at bank, deposits at call and those highlyliquid investments (with an original maturity of three months or less), which are held for the purpose of meeting short term cashcommitments rather than for investment purposes, and readily convertible to known amounts of cash with an insignificant risk ofchanges in value.

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

Receivables

Receivables consist predominantly of debtors in relation to goods and services, accrued investment income and GST input tax creditsrecoverable.

Receivables are recognised initially at fair value plus any directly attributable transaction costs and subsequently measured atamortised cost, using the effective interest rate method, less any accumulated impairment.

A provision for doubtful receivables is made when there is objective evidence that the debts may not be collected and bad debts arewritten off when identified.

Investments and other financial assets

Investments are recognised and de-recognised on trade date where purchase or sale of an investment is under a contract whoseterms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fairvalue, net of transaction costs.

The Trust classifies its other investments into the following categories: financial assets at fair value through profit or loss; and loansand receivables. The classification depends on the purpose for which the investments were acquired. Management determines theclassification of its investments at initial recognition.

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

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

Receivables are assessed for bad and doubtful debts are assessed on a regular basis. Those bad debts considered as written offby mutual consent are classified as a transaction expense. The allowance for doubtful receivables and bad debts not written off bymutual consent are adjusted as ‘other economic flows’ in the net result.

(K) Non-financial assets

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

Non-financial physical assets (including disposal group assets) are treated as current and classified as held for sale if their carryingamount 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 andfair value less costs of disposal, and are not subject to depreciation or amortisation.



Financial instrument liabilities measured at amortised cost include all of the Trust’s contractual payables and interest-bearingarrangements other than those designated at fair value through profit or loss.

(J) Financial assets

Cash and deposits

Cash and deposits recognised on the balance sheet comprise cash on hand and cash at bank, deposits at call and those highlyliquid investments (with an original maturity of three months or less), which are held for the purpose of meeting short term cashcommitments rather than for investment purposes, and readily convertible to known amounts of cash with an insignificant risk ofchanges in value.

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

Receivables

Receivables consist predominantly of debtors in relation to goods and services, accrued investment income and GST input tax creditsrecoverable.

Receivables are recognised initially at fair value plus any directly attributable transaction costs and subsequently measured atamortised cost, using the effective interest rate method, less any accumulated impairment.

A provision for doubtful receivables is made when there is objective evidence that the debts may not be collected and bad debts arewritten off when identified.

Investments and other financial assets

Investments are recognised and de-recognised on trade date where purchase or sale of an investment is under a contract whoseterms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fairvalue, net of transaction costs.

The Trust classifies its other investments into the following categories: financial assets at fair value through profit or loss; and loansand receivables. The classification depends on the purpose for which the investments were acquired. Management determines theclassification of its investments at initial recognition.

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

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

Receivables are assessed for bad and doubtful debts are assessed on a regular basis. Those bad debts considered as written offby mutual consent are classified as a transaction expense. The allowance for doubtful receivables and bad debts not written off bymutual consent are adjusted as ‘other economic flows’ in the net result.

(K) Non-financial assets

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

Non-financial physical assets (including disposal group assets) are treated as current and classified as held for sale if their carryingamount 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 andfair value less costs of disposal, and are not subject to depreciation or amortisation.

Page 17


Property, plant and equipment

All non-current physical assets are measured initially at cost and subsequently revalued at fair value less accumulated depreciationand impairment. Where an asset is acquired for no or nominal cost, the cost is its fair value at the date of acquisition. More detailsabout the valuation techniques and inputs used in determining the fair value of non-financial physical assets are discussed in Note9 Property, plant and equipment.

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

Non-financial physical assets such as land and buildings are measured at fair value with regard to the property’s highest and bestuse after due consideration is made for any legal or physical restrictions imposed on the asset, public announcements orcommitments made in relation to the intended use of the asset. Theoretical opportunities that may be available in relation to the assetare not taken into account until it is virtually certain that the restrictions will no longer apply. Therefore, unless otherwise disclosed,the current use of these non-financial physical assets will be their highest and best uses.

The fair value of infrastructure systems and plant, equipment and vehicles, is normally determined by reference to the asset’sdepreciated replacement cost, or where the infrastructure is held by a for-profit entity, the fair value may be derived from estimatesof the present value of future cash flows.

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

Leasehold improvements

The cost of leasehold improvements is capitalised as an asset and depreciated over the shorter of the remaining term of the leaseor the estimated useful life of the improvements.

Restrictive nature of land assets

During the reporting period, the Trust holds land assets that the Trust intends to preserve because of their environmental attributes.

In general, the fair value of those assets is measured at the depreciated replacement cost. In addition, as there are limitat ions andrestrictions imposed on those assets use and/or disposal, they may impact the fair value of those assets, and should be taken intoaccount when the fair value is determined.

Revaluations of non-current physical assets

Non-current physical assets are measured at fair value on a cyclical basis, in accordance with FRD 103F issued by the Minister forFinance. A full revaluation normally occurs every five years, based on the asset’s government purpose classification, but may occurmore frequently if fair value assessments indicate material changes in values. Independent valuers are used to conduct thesescheduled revaluations and 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 recognisedin ‘other economic flows – other comprehensive income’, and accumulated in equity under the asset revaluation surplus, except thatthe net revaluation increase shall be recognised in the net result to the extent that it reverses a net revaluation decrease in respectof the same class of property, plant and equipment previously recognised as an expense (other economic flows) in the net result.

Net revaluation decreases are recognised in ‘other economic flows – other comprehensive income’ to the extent that a credit balanceexists in the asset revaluation surplus in respect of the same class of property, plant and equipment. Otherwise, the net revaluationdecreases are recognised are recognised immediately as other economic flows in the net result. The net revaluation decreaserecognised in ‘other economic flows – other comprehensive income’ reduces the amount accumulated in equity under assetrevaluation surplus.

Revaluation increases and decreases relating to individual assets within a class of property, plant and equipment, are offset againstone another within that class but are not offset in respect of assets in different classes. Any revaluation surplus is not normallytransferred to accumulated funds on de-recognition of the relevant asset.

Intangible assets

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

Refer to Note 1(G) Depreciation and amortisation and Note 1(H) Impairment of non-financial assets.



(L) Liabilities

Payables

Payables consist predominantly of accounts payable and other sundry liabilities. Accounts payable represent liabilities for goods andservices provided to the Trust prior to the end of the financial year that are unpaid, and arise when the Trust becomes obliged tomake future payments in respect of the purchase of those goods and services, and accrued interest income payable on funds heldon behalf of third party landowners under offset arrangements.

Other liabilities included in payables mainly consist of unearned/prepaid income, goods and services tax and fringe benefits taxpayables.

Payables are initially recognised at fair value, being the cost of the goods and services, and subsequently measured at amortisedcost.

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

Borrowings

All interest bearing liabilities are initially measured at fair value of the consideration received, less directly attributable transactioncosts (refer to Note 1(M) Leases). Subsequent to initial recognition, borrowings are measured at amortised cost with any differencebetween the initial recognised amount and the redemption value being recognised in net result over the period of the borrowing usingthe effective interest method.

The above classification depends on the nature and purpose of the interest bearing liabilities. The Trust determines the classificationof its interest bearing liabilities at initial recognition.

Provisions

Provisions are recognised when the Trust has a present obligation, the future sacrifice of economic benefits is probable, and theamount 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 reportingdate, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cashflowsestimated to settle the present obligation, its carrying amount is the present value of those cashflows, using a discount rate thatreflects 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 receivableis recognised as an asset if it is virtually certain that recovery will be received and the amount of the receivable can be measuredreliably.

Employee benefits

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

(i) Wages and salaries, and annual leave

Liabilities for wages and salaries, including non-monetary benefits annual leave are all recognised in the provision for employeebenefits as ‘current liabilities’ because the Trust does not have an unconditional right to defer settlements of these liabilities.

Depending on the expectation of the timing of settlement, liabilities for wages and salaries and annual leave are measured at:

undiscounted value – if the Trust expects to wholly settle within 12 months; or Present value – if the Trust does not expect to wholly settle within 12 months.

(ii) Long service leave

Liability 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 Trust does not expect tosettle the liability within 12 months because it will not have the unconditional right to defer the settlement of the entitlement shouldan employee take leave within 12 months.

Page 19


The components of this current LSL liability are measured at: undiscounted value – if the Trust expects to wholly settle within 12 months; and present value - if the Trust does not expect to wholly 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 untilthe 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 theextent that a gain or loss arises due to changes in bond interest rates for which it is then recognised in the net result as an othereconomic flow (refer to Note 1(G)).

(iii) Termination benefits

Termination benefits are payable when employment is terminated before the normal retirement date, or when an employee acceptsvoluntary redundancy in exchange for these benefits. The Trust recognises termination benefits when it is demonstrably committedto either terminating the employment of current employees according to a detailed formal plan without possibil ity of withdrawal orproviding termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12months after balance sheet date are discounted to present value.

On-costs

Provisions for on-costs such as workers compensation and superannuation are recognised separately from provision for employeebenefits.

(M) Leases

A 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 soas to reflect the risks and rewards incidental to ownership. Leases of property, plant and equipment are classified as finance leaseswhenever the terms of the lease transfer substantially all the risks and rewards of ownership from the lessor to the lessee. All otherleases are classified as operating leases.

Finance leases (the Trust as lessee)

At the commencement of the lease term, finance leases are initially recognised as assets and liabilities at amounts equal to the fairvalue of the lease property or, if lower, the present value of the minimum lease payment, each determined at the inception of thelease. The lease asset is accounted for as a non-financial physical asset. If there is certainty that the Trust will obtain the ownershipof the lease asset by the end of the lease term, the asset shall be depreciated over the useful life of the asset. If there is no reasonablecertainty that the lessee will obtain ownership by the end of the lease term, the asset shall be fully depreciated over the shorter ofthe lease term and its useful life.

Minimum finance lease payments are apportioned between reduction of the outstanding lease liability, and periodic finance expensewhich 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 (the Trust as lessee)

Operating lease payments, including any contingent rentals, are recognised as an expense in the comprehensive operatingstatement on a straight-line basis over the lease term, except where another systematic basis is more representative of the timepattern 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 considerationagreed 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 are recognised as areduction of rental expense over the lease term on a straight-line basis, unless another systematic basis is more representative ofthe time pattern in which economic benefits from the leased asset are consumed.



(U) Australian Accounting Standards (AAS) issued that are not yet effective

The table below outlines the accounting pronouncements that have been issued but not yet effective for 2016-17, which may resultin potential impacts on the Trust’s reporting for future periods.

Standard/Interpretation 1 Summary

Applicable forannualreportingperiodsbeginning on

Impact on public sectorentity financial statements

AASB 9 FinancialInstruments

The key changes include the simplifiedrequirements for the classification andmeasurement of financial assets, a newhedging accounting model and arevised impairment loss model torecognise impairment losses earlier, asopposed to the current approach thatrecognises impairment only whenincurred.

1 Jan 2018 The assessment has identifiedthat the amendments are likely toresult in earlier recognition ofimpairment losses and at moreregular intervals.While there will be no significantimpact arising from AASB 9,there will be a change to the wayfinancial instruments aredisclosed.

AASB 2010-7 Amendmentsto Australian AccountingStandards arising fromAASB 9 (December 2010)

The requirements for classifying andmeasuring financial liabilities wereadded to AASB 9. The existingrequirements for the classification offinancial liabilities and the ability to usethe fair value option have beenretained. However, where the fair valueoption is used for financial liabilities thechange in fair value is accounted for asfollows: The change in fair value attributable

to changes in credit risk is presentedin other comprehensive income(OCI); and

Other fair value changes arepresented in profit and loss. If thisapproach creates or enlarges anaccounting mismatch in the profit orloss, the effect of the changes incredit risk are also presented inprofit or loss.

1 Jan 2018 The assessment has identifiedthat the financial impact ofavailable for sale (AFS) assetswill now be reported throughother comprehensive income(OCI) and no longer recycled tothe profit and loss.Changes in own credit risk inrespect of liabilities designated atfair value through profit and losswill now be presented withinother comprehensive income(OCI).While the preliminaryassessment has not identifiedany material impact arising fromAASB 9, it will continue to bemonitored and assessed.

AASB 2014-1 Amendmentsto Australian AccountingStandards [Part E FinancialInstruments]

Amends various AASs to reflect theAASB’s decision to defer the mandatoryapplication date ofAASB 9 to annual reporting periodsbeginning on or after 1 January 2018 asa consequence of Chapter 6 HedgeAccounting, and to amend reduceddisclosure requirements.

1 Jan 2018 This amending standard willdefer the application period ofAASB 9 to the 2018-19 reportingperiod in accordance with thetransition requirements.

AASB 2014-7 Amendmentsto Australian AccountingStandards arising from AASB9

Amends various AASs to incorporatethe consequential amendments arisingfrom the issuance of AASB 9.

1 Jan 2018 The assessment has indicatedthat there will be no significantimpact for the public sector.

Page 20


(N) Equity

Contributions by owners

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 Trust.

Additions to net assets which have been designated as contributions by owners are recognised as contributed capital. Other transfersthat are in the nature of contributions to or distributions by owners 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. Transfersof net liabilities arising from administrative restructurings are treated as distributions to owners.

(O) CommitmentsCommitments for future expenditure include operating and capital commitments arising from contracts. These commitments aredisclosed by way of a note (refer to Note 16 Commitments for expenditure) at their nominal value and inclusive of the GST payable.

(P) 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 to Note17 Contingent assets and contingent liabilities) and, if quantifiable, are measured at nominal value. Contingent assets and liabilitiesare presented inclusive of GST receivable or payable respectively.

(Q) Rounding of amounts

Amounts in the financial statements have been rounded to the nearest dollar.

(R) Tax status

As a State Government body corporate, the Trust is exempt from income tax.

(S) Allocation between current and non-current

In the determination of whether an asset other than cash and cash equivalents is current, consideration is given as to whether theTrust expects to realise or consume the asset within the twelve months after the reporting date. All cash, cash equivalents andproperty held for re-sale are deemed current. All other assets are recognised as non-current.

Current liabilities are recognised when the liability is due to be settled within the twelve months after reporting date or the Trust doesnot have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

(T) Goods and Services Tax (GST)

Income, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable fromthe taxation authority. In this case it 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 recoverablefrom, or payable to, the taxation authority is included with other receivables or payables in the balance sheet.

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

Commitments and contingent assets or liabilities are also stated inclusive of GST (refer to Note 1(O) and Note 1(P).



(U) Australian Accounting Standards (AAS) issued that are not yet effective

The table below outlines the accounting pronouncements that have been issued but not yet effective for 2016-17, which may resultin potential impacts on the Trust’s reporting for future periods.




AASB 9 FinancialInstruments

The key changes include the simplifiedrequirements for the classification andmeasurement of financial assets, a newhedging accounting model and arevised impairment loss model torecognise impairment losses earlier, asopposed to the current approach thatrecognises impairment only whenincurred.

1 Jan 2018 The assessment has identifiedthat the amendments are likely toresult in earlier recognition ofimpairment losses and at moreregular intervals.While there will be no significantimpact arising from AASB 9,there will be a change to the wayfinancial instruments aredisclosed.

AASB 2010-7 Amendmentsto Australian AccountingStandards arising fromAASB 9 (December 2010)

The requirements for classifying andmeasuring financial liabilities wereadded to AASB 9. The existingrequirements for the classification offinancial liabilities and the ability to usethe fair value option have beenretained. However, where the fair valueoption is used for financial liabilities thechange in fair value is accounted for asfollows: The change in fair value attributable

to changes in credit risk is presentedin other comprehensive income(OCI); and

Other fair value changes arepresented in profit and loss. If thisapproach creates or enlarges anaccounting mismatch in the profit orloss, the effect of the changes incredit risk are also presented inprofit or loss.

1 Jan 2018 The assessment has identifiedthat the financial impact ofavailable for sale (AFS) assetswill now be reported throughother comprehensive income(OCI) and no longer recycled tothe profit and loss.Changes in own credit risk inrespect of liabilities designated atfair value through profit and losswill now be presented withinother comprehensive income(OCI).While the preliminaryassessment has not identifiedany material impact arising fromAASB 9, it will continue to bemonitored and assessed.

AASB 2014-1 Amendmentsto Australian AccountingStandards [Part E FinancialInstruments]

Amends various AASs to reflect theAASB’s decision to defer the mandatoryapplication date ofAASB 9 to annual reporting periodsbeginning on or after 1 January 2018 asa consequence of Chapter 6 HedgeAccounting, and to amend reduceddisclosure requirements.

1 Jan 2018 This amending standard willdefer the application period ofAASB 9 to the 2018-19 reportingperiod in accordance with thetransition requirements.


Amends various AASs to incorporatethe consequential amendments arisingfrom the issuance of AASB 9.

1 Jan 2018 The assessment has indicatedthat there will be no significantimpact for the public sector.

Page 20


(N) Equity

Contributions by owners

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 Trust.

Additions to net assets which have been designated as contributions by owners are recognised as contributed capital. Other transfersthat are in the nature of contributions to or distributions by owners 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. Transfersof net liabilities arising from administrative restructurings are treated as distributions to owners.

(O) CommitmentsCommitments for future expenditure include operating and capital commitments arising from contracts. These commitments aredisclosed by way of a note (refer to Note 16 Commitments for expenditure) at their nominal value and inclusive of the GST payable.

(P) 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 to Note17 Contingent assets and contingent liabilities) and, if quantifiable, are measured at nominal value. Contingent assets and liabilitiesare presented inclusive of GST receivable or payable respectively.

(Q) Rounding of amounts

Amounts in the financial statements have been rounded to the nearest dollar.

(R) Tax status

As a State Government body corporate, the Trust is exempt from income tax.

(S) Allocation between current and non-current

In the determination of whether an asset other than cash and cash equivalents is current, consideration is given as to whether theTrust expects to realise or consume the asset within the twelve months after the reporting date. All cash, cash equivalents andproperty held for re-sale are deemed current. All other assets are recognised as non-current.

Current liabilities are recognised when the liability is due to be settled within the twelve months after reporting date or the Trust doesnot have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

(T) Goods and Services Tax (GST)

Income, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable fromthe taxation authority. In this case it 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 recoverablefrom, or payable to, the taxation authority is included with other receivables or payables in the balance sheet.

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

Commitments and contingent assets or liabilities are also stated inclusive of GST (refer to Note 1(O) and Note 1(P).

Standard/Interpretation1 Summary

Applicable for annual reporting periods beginning on

Impact on public sector entity financial statements





AASB 15 Revenue fromContracts with Customers

The core principle of AASB 15 requiresan entity to recognise revenue when theentity satisfies a performance obligationby transferring a promised good orservice to a customer.

1 Jan 2018 The changes in revenuerecognition requirements inAASB 15 may result in changesto the timing and amount ofrevenue recorded in the financialstatements. The Standard willalso require additionaldisclosures on service revenueand contract modifications.The assessment has indicatedthat the Trust has no immediatepotential impact to recogniserevenue upfront.


Amends the measurement of tradereceivables and the recognition ofdividends.Trade receivables, that do not have asignificant financing component, are tobe measured at their transaction price,at initial recognition.Dividends are recognised in the profitand loss only when: the entity’s right to receive payment

of the dividend is established; it is probable that the economic

benefits associated with thedividend will flow to the entity; and

the amount can be measuredreliably.

1 Jan 2017, exceptamendments toAASB 9 (Dec2009) and AASB 9(Dec 2010) applyfrom 1 Jan 2018

The assessment has indicatedthat there will be no significantimpact for the Trust.

AASB 2015-8 Amendmentsto Australian AccountingStandards – Effective Date ofAASB 15

This Standard defers the mandatoryeffective date of AASB 15 from1 January 2017 to 1 January 2018.

1 Jan 2018 This amending standard willdefer the application period ofAASB 15 for for-profit entities tothe 2018-19 reporting period inaccordance with the transitionrequirements.

AASB 2016-7 Amendmentsto Australian AccountingStandards – Deferral ofAASB 15 for Not-for-ProfitEntities

This Standard defers the mandatoryeffective date of AASB 15 for not-for-profit entities from 1 January 2018 to 1January 2019.

1 Jan 2019 This amending standard willdefer the application period ofAASB 15 for the Trust to the2019-20 reporting period.

Page 23




AASB 16 Leases The key changes introduced by AASB16 include the recognition of mostoperating leases (which are current notrecognised) on balance sheet.

1 Jan 2019 The assessment has indicatedthat as most operating leases willcome on balance sheet,recognition of the right-of-useassets and lease liabilities willcause net debt to increase.Rather than expensing the leasepayments, depreciation of right-of-use assets and interest onlease liabilities will be recognisedin the income statement withmarginal impact on the operatingsurplus.

AASB 2016-4 Amendmentsto Australian AccountingStandards – RecoverableAmount of Non-Cash-Generating SpecialisedAssets of Not-for-ProfitEntities

The standard amends AASB 136Impairment of Assets to removereferences to using depreciatedreplacement cost (DRC) as a measureof value in use for not-for-profit entities.

1 Jan 2017 The assessment has indicatedthat there is minimal impact.Given the specialised nature andrestrictions of the Trust’s assets,the existing use is presumed tobe the highest and best use(HBU), hence currentreplacement cost under AASB 13Fair Value Measurement is thesame as the depreciatedreplacement cost concept underAASB 136.

In addition to the new standards and amendments above, the AASB has issued a list of other amending standards that are noteffective for the 2016-17 reporting period (as listed below). In general, these amending standards include editorial and referenceschanges that are expected to have insignificant impacts on the Trust’s reporting.

AASB 2016-1 Amendments to Australian Accounting Standards – Recognition of Deferred Tax Assets for Unrealised Losses [AASB 112]

AASB 2016-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 107

AASB 2016-5 Amendments to Australian Accounting Standards – Classification and Measurements of Share-based Payment

Transactions

AASB 2016-6 Amendments to Australian Accounting Standards – Applying AASB 9 Financial Instruments with AASB 4 Insurance

Contracts

AASB 2017-1 Amendments to Australian Accounting Standards – Transfers of Investment Property, Annual Improvements 2014-16 Cycle

and Other Amendments

AASB 2017-2 Amendments to Australian Accounting Standards – Further Annual Improvements 2014-16 Cycle

Notes:

1. For the current year, given the number of consequential amendments to AASB 9 Financial Instruments and AASB 15 Revenue fromContracts with Customers, the standards/interpretations have been grouped together to provide a more relevant view of the upcoming changes.








AASB 16 Leases The key changes introduced by AASB16 include the recognition of mostoperating leases (which are current notrecognised) on balance sheet.

1 Jan 2019 The assessment has indicatedthat as most operating leases willcome on balance sheet,recognition of the right-of-useassets and lease liabilities willcause net debt to increase.Rather than expensing the leasepayments, depreciation of right-of-use assets and interest onlease liabilities will be recognisedin the income statement withmarginal impact on the operatingsurplus.

AASB 2016-4 Amendmentsto Australian AccountingStandards – RecoverableAmount of Non-Cash-Generating SpecialisedAssets of Not-for-ProfitEntities

The standard amends AASB 136Impairment of Assets to removereferences to using depreciatedreplacement cost (DRC) as a measureof value in use for not-for-profit entities.

1 Jan 2017 The assessment has indicatedthat there is minimal impact.Given the specialised nature andrestrictions of the Trust’s assets,the existing use is presumed tobe the highest and best use(HBU), hence currentreplacement cost under AASB 13Fair Value Measurement is thesame as the depreciatedreplacement cost concept underAASB 136.

In addition to the new standards and amendments above, the AASB has issued a list of other amending standards that are noteffective for the 2016-17 reporting period (as listed below). In general, these amending standards include editorial and referenceschanges that are expected to have insignificant impacts on the Trust’s reporting.

AASB 2016-1 Amendments to Australian Accounting Standards – Recognition of Deferred Tax Assets for Unrealised Losses [AASB 112]

AASB 2016-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 107

AASB 2016-5 Amendments to Australian Accounting Standards – Classification and Measurements of Share-based Payment

Transactions

AASB 2016-6 Amendments to Australian Accounting Standards – Applying AASB 9 Financial Instruments with AASB 4 Insurance

Contracts

AASB 2017-1 Amendments to Australian Accounting Standards – Transfers of Investment Property, Annual Improvements 2014-16 Cycle

and Other Amendments

AASB 2017-2 Amendments to Australian Accounting Standards – Further Annual Improvements 2014-16 Cycle

Notes:

1. For the current year, given the number of consequential amendments to AASB 9 Financial Instruments and AASB 15 Revenue fromContracts with Customers, the standards/interpretations have been grouped together to provide a more relevant view of the upcoming changes.





Note 2 Income from transactions

2017 2016$ $

(a) Grant incomeState Government – Operating grant recurrent 435,000 443,301

State Government - Operating grant non-recurrent 1,050,000 350,000

Government grants 1,909,451 2,255,263Government & philanthropic grants used to acquire properties (i) 219,213 135,000

Project grants and property grants, consulting – philanthropic and other parties 665,087 203,128Total grants and other transfers 4,278,751 3,386,692

(b) Interest on InvestmentsInterest on bank deposits 332,878 380,434

521,238 539,842

Total interest on investments 854,116 920,276

(c) DividendsDividends from managed funds and equities 159,473 206,217

Total dividends 159,473 206,217

(d) DonationsGeneral donations 262,775 497,274Donations for appeals and properties(i) 373,061 269,671General bequests 212,634 12,239Bequest of equities 0 575,224Other fundraising income 100,737 40,127

Total donations 949,207 1,394,535

(e) Fair value of services received free of charge or for nominal considerationLegal services 5,518 45,720

Total fair value of services received free of charge or for nominal consideration 5,518 45,720

(f) Other incomeRental income 12,032 10,097Sale of goods and services 155 7,937Offset program income 171,130 241,608Other 347,386 187,268

Total other income 530,703 446,910

Note:(i) From time to time Trust for Nature receives grant or donation and appeal revenue which is used to acquire properties. Such transactionsresult in an accounting profit equal to the acquisition cost which resides in the accumulated surplus (Note 21) until such time as the property issurrendered or sold.In 2016-17 one property was purchased by Trust for Nature ($69,213) and another was puchased by a partner organisation ($150,000) withcontributions from Government and philanthropic revenue. (2015-16: one property was purchased with a contribution from Government grantrevenue of $135,000), refer to Note 2(a), and two further properties were purchased to the value of $304,094 using donation and appealrevenues from 2014-15 and 2015-16. Refer to Note 2(d) and Note 9.

Interest on bank deposits attributable to funds held awaiting remittance and landownerpayments held in trust

Page 24


Note 2 Income from transactions

2017 2016$ $

(a) Grant incomeState Government – Operating grant recurrent 435,000 443,301

State Government - Operating grant non-recurrent 1,050,000 350,000

Government grants 1,909,451 2,255,263Government & philanthropic grants used to acquire properties (i) 219,213 135,000

Project grants and property grants, consulting – philanthropic and other parties 665,087 203,128Total grants and other transfers 4,278,751 3,386,692

(b) Interest on InvestmentsInterest on bank deposits 332,878 380,434

521,238 539,842

Total interest on investments 854,116 920,276

(c) DividendsDividends from managed funds and equities 159,473 206,217

Total dividends 159,473 206,217

(d) DonationsGeneral donations 262,775 497,274Donations for appeals and properties(i) 373,061 269,671General bequests 212,634 12,239Bequest of equities 0 575,224Other fundraising income 100,737 40,127

Total donations 949,207 1,394,535

(e) Fair value of services received free of charge or for nominal considerationLegal services 5,518 45,720

Total fair value of services received free of charge or for nominal consideration 5,518 45,720

(f) Other incomeRental income 12,032 10,097Sale of goods and services 155 7,937Offset program income 171,130 241,608Other 347,386 187,268

Total other income 530,703 446,910

Note:(i) From time to time Trust for Nature receives grant or donation and appeal revenue which is used to acquire properties. Such transactionsresult in an accounting profit equal to the acquisition cost which resides in the accumulated surplus (Note 21) until such time as the property issurrendered or sold.In 2016-17 one property was purchased by Trust for Nature ($69,213) and another was puchased by a partner organisation ($150,000) withcontributions from Government and philanthropic revenue. (2015-16: one property was purchased with a contribution from Government grantrevenue of $135,000), refer to Note 2(a), and two further properties were purchased to the value of $304,094 using donation and appealrevenues from 2014-15 and 2015-16. Refer to Note 2(d) and Note 9.

Interest on bank deposits attributable to funds held awaiting remittance and landownerpayments held in trust

Page 24

Note 3 Expenses from transactions

2017 2016$ $

(a) Employee expensesSalaries and wages, annual leave and long service leave (3,083,291) (3,033,073)

Fringe benefits tax (8,895) (6,639)

Defined contribution superannuation expense (287,780) (276,050)

Workers Compensation (70,629) (48,039)

Other employee expenses (52,097) (34,834)Total employee expenses (3,502,692) (3,398,635)

(b) Depreciation and amortisationBuildings (87,212) (61,579)Plant & equipment (58,420) (82,495)Motor vehicles (25,031) (25,642)Leasehold improvements (44,131) (44,131)Amortisation of software (65,630) (63,970)

Total depreciation and amortisation (280,424) (277,817)

(c) Conservation, covenant and stewardship programsLegal services received free of charge or for nominal consideration (5,518) (45,720)Landowner incentives and on-ground works (448,469) (472,540)Services provided by project partners (169,098) (47,000)Contribution towards property acquired by crown (150,000) 0Provision for future year stewardship (207,500) (109,600)Other covenant and stewardship program expenditure (77,902) (81,291)

Total conservation, covenant and stewardship programs (1,058,487) (756,151)

(d) Payments from appeals and other reserves with specified purposePayments from appeals and other reserves with specified purpose (433,348) (236,356)

Total Payments from appeals and other reserves with specified purpose (433,348) (236,356)

(e) Other operating expensesOccupancy (294,870) (270,660)Interest attributed to funds held awaiting remittance and landowner payments held in trust (521,238) (539,842)Supplies and services (1,431,326) (1,171,404)

Total other operating expenses (2,247,434) (1,981,906)

Note 4 Other economic flows included in net result2017 2016

$ $(a) Net gain/(loss) on non-financial assets

Net gain on disposal of plant & equipment 9,608 1,400Total net gain on non-financial assets 9,608 1,400

(b) Net gain/(loss) on financial instrumentsNet gain on disposal of financial investments 20,439 17,709Net gain/(loss) arising from revaluation of financial assets at fair value 244,387 (15,574)

Total net gain on financial instruments 264,826 2,135

Page 25Trust for Nature Annual Report 2016-17 59

Note 5 Receivables

2017 2016$ $

Current receivablesContractual

Sale of goods and services(i) 750,018 1,374,161

Interest receivable 155,124 330,252Other receivables(ii) 126,000 297,393

Total current receivables 1,031,142 2,001,806

Non-current receivablesContractual

Interest receivable 105,744 19,818Total non-current receivables 105,744 19,818

Total receivables 1,136,886 2,021,624Note:(i) The average credit period on sales of services is 30 days. No interest is charged on other receivables.(ii) Other receivables includes $126,000 (2015-16: $195,000) paid for the acquisition of a property for which title has not transferred.

(a) Ageing analysis of contractual receivablesPlease refer to Table 18.4 in Note 18 for the ageing analysis of contractual receivables.

(b) Nature and extent of risk arising from contractual receivablesPlease refer to Note 18(b) for the nature and extent of credit risk arising from contractual receivables.

Note 6 Investments and other financial assets

2017 2016$ $

Current investments and other financial assetsAustralian dollar term deposits > 3 months(i)(v) 24,160,178 26,851,498Listed securities(ii) 0 558,289

Total current investments and other financial assets 24,160,178 27,409,787

Non-current investments and other financial assetsAustralian dollar term deposits > 12 months(i) 3,580,936 1,613,991Managed investment schemes(ii)(iii) 4,627,014 4,260,138Listed securities(ii)(iv) 0 4,272

Total non-current investments and other financial assets 8,207,950 5,878,401

Total investments and other financial assets 32,368,128 33,288,188Notes:

(a) Ageing analysis of investments and other financial assetsPlease refer to Table 18.4 in Note 18 for the ageing analysis of investments and other financial assets.

(b) Nature and extent of risk arising from investments and other financial assetsPlease refer to Note 18 for the nature and extent of risks arising from investments and other financial assets.

(i) Term deposits under ’investments and other financial assets’ class include only term deposits with maturity greater than 90 days.

(ii) The Trust designated all its equities and managed investment schemes at fair value through the profit or loss. Therefore, unless they arepart of a disposal group held for sale, all equities and managed investment schemes are classified as non-current. This is consistent with theTrust’s purpose of holding the investment for long-term management of risk, not for short-term profit gain.

(iii) The managed investment schemes are managed by JBWere.

(v) This balance includes a term deposit in the amount of $93,124 held as security against bank guarantees issued for rental sites. The bankguarantees outstanding at balance sheet date amounted to $93,124 (2016: $93,124).

(iv) Listed securities includes shares in Teys Income Builder which were received in a bequest in 2009-10. Its responsible entity, TPFL, wasplaced in administration on 5 March 2010 and into liquidation on 20 April 2010. A final payment was received from the liquidator during theyear. The value of these shares at 30 June 2017 was $nil (2016: $4,272).

Page 26www.trustfornature.org.au60

Note 7 Other assets

2017 2016$ $

Current other assetsPrepayments 52,570 41,921

Consulting services provided but not yet invoiced 167,833 48,903

Deposits 3,477 9,198

Total other assets 223,880 100,022

Note 8 Non-financial physical assets classified as held for sale

2017 2016$ $

CurrentFreehold land held for sale 1,574,972 1,382,505

Total non-financial physical assets classified as held for sale 1,574,972 1,382,505

Land and buildings held for sale are valued at the lower of their carrying amount and fair value less costs to sell.

Level 1 (i) Level 2 (i) Level 3 (i)

2017 $ $ $ $Land at fair value

Specialised land 1,574,972 1,574,972Total of land at fair value 1,574,972 1,574,9722016Land at fair value

Specialised land 1,382,505 1,382,505Total of land at fair value 1,382,505 1,382,505Notes:

There have been no transfers between levels during the period.

The Trust intends to dispose of certain freehold land within the next twelve months. This includes Revolving Fund land that wasacquired for purposes of conservation with the intention of reselling it with covenants established to ensure particular naturalaspects of the properties are conserved. A search is underway for buyers. No impairment loss was recognised onreclassification of the freehold land as held for sale or at reporting date.

Table 8.2: Fair value measurement hierarchy for assets

Carryingamount as at

30 June

Fair value measurement at end of reportingperiod using(ii):

Table 8.1: Non-financial physical assets classified as held for sale

(i) Classified in accordance with the fair value hierarchy, see Note 1 (B)(ii) Non-financial physical assets classified as held for sale have been classified as level 2 as the significant inputs to fair value measurementare indirectly observable, in this case the recent acquisition costs with reference to recent comparable sales in the area.


Note 9 Property, plant and equipment

2017 2016$ $

Land at fair value 16,486,951 17,185,511

16,486,951 17,185,511

Buildings at fair value 3,137,000 3,139,000

Less accumulated depreciation (87,112) 0

3,049,888 3,139,000

Leasehold improvements at fair value 306,012 306,012

Less accumulated depreciation (277,852) (233,722)

28,160 72,290

Plant and equipment at fair value 496,857 534,750


166,630 63,319

Motor vehicles at fair value 227,161 218,106


72,985 95,944

Total property, plant and equipment 19,804,614 20,556,064Note:

Table 9.2: Aggregate depreciation recognised as an expense during the year (i)

2017 2016$ $

Buildings 87,212 61,579

Plant & equipment 58,420 82,495

Motor vehicles 25,031 25,642

Leasehold improvements 44,131 44,131

Total property, plant and equipment 214,794 213,847Note:

Table 9.1: Classification by 'Public safety and environment' Purpose Group - Gross carrying amount and accumulated depreciation(i)

(i) Property, plant and equipment are classified primarily by the ‘purpose’ for which the assets are used, according to one of six purposegroups based upon government purpose classifications (GPC). All assets within a purpose group are further sub categorised according to theasset’s ‘nature’ (i.e. buildings, plant and equipment, etc), with each sub category being classified as a separate class of asset for financialreporting purposes.

(i) The useful lives as stated in Note 1 are used in the calculation of depreciation.


Not

e 9

P

rope

rty,

pla

nt a

nd e

quip

men

t (c

ontin

ued)

Tabl

e 9.

3:

Cla

ssifi

catio

n by

'Pub

lic s

afet

y an

d en

viro

nmen

t' Pu

rpos

e G

roup

- M

ovem

ents

in c

arry

ing

amou

nts

2017

2016

2017

2016

2017

2016

2017

2016

2017

2016

2017

2016

$$

$$

$$

$$

$$

$$

Ope

ning

bal

ance

17,1

85,5

1116

,227

,465

3,13

9,00

01,

893,

634

72,2

9011

6,42

163

,319

135,

095

95,9

4410

0,31

020

,556

,064

18,4

72,9

25

Addi

tions

66,4

4030

4,09

416

1,73

110

,719

2,07

233

,670

230,

243

348,

483

Dis

posa

ls(1

2,39

4)0

(12,

394)

Tran

sfer

to a

sset

s he

ld fo

r sal

e(i)

00

Rev

alua

tion

of P

PE (i

)(7

65,0

00)

653,

952

(1,9

00)

1,30

6,94

5(7

66,9

00)

1,96

0,89

7

Dep

reci

atio

n ex

pens

e0

0(8

7,21

2)(6

1,57

9)(4

4,13

0)(4

4,13

1)(5

8,42

0)(8

2,49

5)(2

5,03

1)(2

5,64

2)(2

14,7

93)

(213

,847

)C

losi

ng b

alan

ce16

,486

,951

17,1

85,5

113,

049,

888

3,13

9,00

028

,160

72,2

9016

6,63

063

,319

72,9

8595

,944

19,8

04,6

1420

,556

,064

Land

and

bui

ldin

gs c

arrie

d at

fair

valu

e

Not

e:

An in

depe

nden

t val

uatio

n of

the

Trus

t’ s la

nd a

nd b

uild

ings

was

last

per

form

ed e

ffect

ive

at 3

0 Ju

ne 2

016

by G

.M.B

rien

& As

soci

ates

Pty

Ltd

und

er c

ontra

ct to

the

Valu

er-G

ener

al V

icto

ria. T

heva

luat

ion,

whi

ch c

onfo

rms

to th

e re

quire

men

ts o

f AAS

B13

and

FRD

103

F, a

dopt

ed th

e M

arke

t Bas

ed D

irect

Com

paris

on m

etho

d ad

just

ed fo

r the

Com

mun

ity S

ervi

ce O

blig

atio

ns.

Tota

lM

otor

veh

icle

s at

fair

valu

eLa

nd a

t fai

r val

ueBu

ildin

gs a

t fai

r val

uePl

ant a

nd e

quip

men

t at

fair

valu

eLe

aseh

old

impr

ovem

ents

Fair

valu

e as

sess

men

ts h

ave

been

per

form

ed fo

r all

clas

ses

of a

sset

s at

30

June

201

7 an

d th

e de

cisi

on w

as m

ade

that

mov

emen

ts w

ere

not m

ater

ial (

less

than

or e

qual

to 1

0 pe

r cen

t) fo

r a fu

llre

valu

atio

n. T

he n

ext s

ched

uled

full

reva

luat

ion

will

be c

ondu

cted

in 2

021.

(i)

Dur

ing

2016

-17,

in-p

rinci

ple

agre

emen

t was

reac

hed

to tr

ansf

er tw

o pr

oper

ties

to th

e C

row

n fo

r $ni

l pro

ceed

s. T

he p

rope

rties

wer

e va

lued

at $

766,

900

in th

e m

ost r

ecen

t rev

alua

tion

but

acqu

ired

at $

nil v

alue

. The

pro

perti

es h

ave

been

reva

lued

dow

nwar

ds to

$ni

l and

tran

sfer

red

to a

sset

s he

ld fo

r sal

e at

$ni

l as

per t

he re

quire

men

ts o

f AA

SB

5.

Page

29

Note 9 Property, plant and equipment

2017 2016$ $

Land at fair value 16,486,951 17,185,511

16,486,951 17,185,511

Buildings at fair value 3,137,000 3,139,000

Less accumulated depreciation (87,112) 0

3,049,888 3,139,000

Leasehold improvements at fair value 306,012 306,012


28,160 72,290

Plant and equipment at fair value 496,857 534,750


166,630 63,319

Motor vehicles at fair value 227,161 218,106


72,985 95,944

Total property, plant and equipment 19,804,614 20,556,064Note:

Table 9.2: Aggregate depreciation recognised as an expense during the year (i)

2017 2016$ $

Buildings 87,212 61,579

Plant & equipment 58,420 82,495

Motor vehicles 25,031 25,642

Leasehold improvements 44,131 44,131

Total property, plant and equipment 214,794 213,847Note:

Table 9.1: Classification by 'Public safety and environment' Purpose Group - Gross carrying amount and accumulated depreciation(i)

(i) Property, plant and equipment are classified primarily by the ‘purpose’ for which the assets are used, according to one of six purposegroups based upon government purpose classifications (GPC). All assets within a purpose group are further sub categorised according to theasset’s ‘nature’ (i.e. buildings, plant and equipment, etc), with each sub category being classified as a separate class of asset for financialreporting purposes.

(i) The useful lives as stated in Note 1 are used in the calculation of depreciation.


Note 9 Property, plant and equipment (continued)



Specialised land 16,486,951 16,486,951Total of land at fair value 16,486,951 16,486,951Buildings at fair value

Specialised buildings 3,049,888 3,049,888Total of buildings at fair value 3,049,888 3,049,888Leasehold improvements at fair value

Leasehold improvements 28,160 28,160Total of leasehold improvements at fair value 28,160 28,160Plant and equipment at fair value

Plant and equipment 166,630 166,630Total of plant and equipment at fair value 166,630 166,630Motor vehicles at fair value

Motor vehicles 72,985 72,985Total of motor vehicles at fair value 72,985 72,9852016Land at fair value





Motor vehicles 95,944 95,944Total of motor vehicles at fair value 95,944 95,944Note:


Table 9.4 (a): Valuation Technique

Specialised land and buildings


Carryingamount

Fair value measurement at end of reportingperiod using:

(i) Classified in accordance with the fair value hierarchy, see Note 1 (B)

Specialised land is valued using the market approach, although it is adjusted for the community service obligation (CSO) toreflect the specialised nature of the land being valued.

The CSO adjustment is a reflection of the valuer's assessment of the impact of restrictions associated with an asset to theextent that is also equally applicable to market participants. This approach is in light of the highest and best use considerationrequired for fair value measurement, and takes into account the use of the asset that is physically possible, legally permissable,and financially feasable. As adjustments of CSO are considered as significant unobservable inputs, specialised land would beclassified as Level 3 assets.

For the Trust's majority of specialised buildings, the depreciated replacement cost method is used, adjusting for the associateddepreciations. As depreciation adjustments are considered as significant, unobservable inputs in nature, specialised buildingsare classified as Level 3 fair value measurements.An independent valuation of the Trust’s specialised land and buildings was last performed by G.M.Brien & Associates Pty Ltdunder contract to the Valuer-General Victoria. The valuation was performed using the market approach adjusted for CSO. Theeffective date of the valuation was 30 June 2016.









Motor vehicles 72,985 72,985Total of motor vehicles at fair value 72,985 72,9852016Land at fair value





Motor vehicles 95,944 95,944Total of motor vehicles at fair value 95,944 95,944Note:


Table 9.4 (a): Valuation Technique

Specialised land and buildings


Carryingamount


(i) Classified in accordance with the fair value hierarchy, see Note 1 (B)

Specialised land is valued using the market approach, although it is adjusted for the community service obligation (CSO) toreflect the specialised nature of the land being valued.

The CSO adjustment is a reflection of the valuer's assessment of the impact of restrictions associated with an asset to theextent that is also equally applicable to market participants. This approach is in light of the highest and best use considerationrequired for fair value measurement, and takes into account the use of the asset that is physically possible, legally permissable,and financially feasable. As adjustments of CSO are considered as significant unobservable inputs, specialised land would beclassified as Level 3 assets.

For the Trust's majority of specialised buildings, the depreciated replacement cost method is used, adjusting for the associateddepreciations. As depreciation adjustments are considered as significant, unobservable inputs in nature, specialised buildingsare classified as Level 3 fair value measurements.An independent valuation of the Trust’s specialised land and buildings was last performed by G.M.Brien & Associates Pty Ltdunder contract to the Valuer-General Victoria. The valuation was performed using the market approach adjusted for CSO. Theeffective date of the valuation was 30 June 2016.

Page 30


Table 9.4 (a): Valuation Technique (continued)

Leasehold improvements

Plant and equipment

Motor vehicles

There were no changes in valuation techniques throughout the period to 30 June 2017.

For all assets measured at fair value, the current use is considered the highest and best use.

Specialisedland

Specialisedbuildings

Leaseholdimprovements

Plant andequipment

Motor vehicles

2017 $ $ $ $ $

Opening balance 17,185,511 3,139,000 72,290 63,319 95,944Purchases (sales) 66,440 0 0 161,731 2,072Transfers in (out) of Level 3 0 0 0 0 0Transfer to assets held for sale 0 0Gains or losses recognised in net resultDepreciation 0 (87,212) (44,130) (58,420) (25,031)Impairment loss 0 0 0 0 0Subtotal 17,251,951 3,051,788 28,160 166,630 72,985Gains or losses recognised in other comprehensive incomeRevaluation (765,000) (1,900) 0 0 0Subtotal (765,000) (1,900) 0 0 0Closing balance 16,486,951 3,049,888 28,160 166,630 72,985Unrealised gains (losses) on non-financialassets

0 0 0 0 0

2016Opening balance 16,227,465 1,893,634 116,421 135,095 100,310Purchases (sales) 304,094 0 0 10,719 21,276Transfers in (out) of Level 3 0 0 0 0 0Gains or losses recognised in net resultDepreciations 0 (61,579) (44,131) (82,495) (25,642)Impairment loss 0 0 0 0 0Subtotal 16,531,559 1,832,055 72,290 63,319 95,944Gains or losses recognised in other comprehensive incomeRevaluation 653,952 1,306,945 0 0 0Subtotal 653,952 1,306,945 0 0 0Closing balance 17,185,511 3,139,000 72,290 63,319 95,944Unrealised gains (losses) on non-financialassets

0 0 0 0 0

Table 9.5: Reconciliation of Level 3 fair value

Motor vehicles are valued using the depreciated replacement cost method. The Trust acquires new vehicles and at timesdisposes of them before the end of their economic life. The depreciation rates are set to reflect the utilisation of the motorvehicles.

Plant and equipment is held at fair value. When plant and equipment is specialised in use, such that it is rarely sold other thanas part of a going concern, fair value is determined using the depreciated replacement cost method.

Leasehold improvements are valued using the depreciated replacement cost method. The depreciation rates are set to reflectutilisation of the leasehold improvements over the minimum lease term.



2017 Valuationtechnique

Significantunobservableinputs (i)

Specialised land Market approach Community ServiceObligation (CSO)adjustment

Specialised buildings Depreciatedreplacement cost

Cost per building

Useful life ofspecialisedbuildings

Leasehold improvements Depreciatedreplacement cost

Direct cost persquaremetre

Useful life ofleaseholdimprovements

Plant and equipment Depreciatedreplacement cost

Cost per unit

Useful life of plantand equipment

Motor vehicles Depreciatedreplacement cost

Cost per unit

Useful life of motorvehicles

Note:(i) CSO adjustments of 25 per cent were applied to some specialised land to reduce the market approach value.

Sensitivity of fair value measurement to changes insignificant unobservable inputs

A significant increase or decrease in the CSO adjustmentwould result in a significantly lower (higher) fair value.

A significant increase or decrease in direct cost per unitwould result in a significantly higher or lower fair value.

A significant increase or decrease in the estimated usefullife of the asset would result in a significantly higher or lowervaluation.

A significant increase or decrease in direct cost per squaremetre adjustment would result in a significantly higher orlower fair value.






Table 9.6: Description of significant unobservable inputs to Level 3 valuations

Page 32






Cost per building






Cost per unit



Cost per unit













Table 9.6: Description of significant unobservable inputs to Level 3 valuations (continued)







Cost per building






Cost per unit



Cost per unit













Table 9.6: Description of significant unobservable inputs to Level 3 valuations

Page 32






Cost per building






Cost per unit



Cost per unit













Table 9.6: Description of significant unobservable inputs to Level 3 valuations (continued)


Note 10 Intangible assets

2017 2016$ $

Gross carrying amountOpening balance 511,057 319,849

Additions 0 0

Closing balance 511,057 319,849

Accumulated amortisation and impairmentOpening balance (142,498) (78,528)

Amortisation of intangible non-produced assets (65,630) (63,970)

Closing balance (208,128) (142,498)Net book value at end of financial year 302,929 177,351

Note 11 Payables

2017 2016$ $

Current payables

ContractualSupplies and services(i) 221,648 425,263

Interest payable to landowners 464,395 453,662

686,043 878,925

Statutory

Net GST payable 48,710 83,380

Group taxes payables 70,405 55,929

119,115 139,309Total current payables 805,158 1,018,234

Total payables 805,158 1,018,234Note:(i) The average credit period is 30 days. No interest is charged on other payables.

(a) Maturity analysis of payablesPlease refer to Table 18.5 in Note 18 for the maturity analysis of payables.

Computer software and

website

Externally purchased software, including the Trust's website, is measured at its initial cost, which includes its purchase price andany directly attributable costs and is amortised on a straight-line basis over an estimated useful life of between 3 and 5 years.

Page 34

Note 12 Borrowings

2017 2016$ $

Current borrowingsLease liabilities (i) 5,738 5,555Other borrowings (ii) 7,705 5,517

Total current borrowings 13,443 11,072

Non-current borrowingsLease liabilities (i) 21,469 27,207

Total non-current borrowings 21,469 27,207Total borrowings 34,912 38,279Notes:

(a) Maturity analysis of borrowingsPlease refer to Table 18.5 in Note 18 for the maturity analysis of borrowings.

(b) Defaults and breachesDuring the current and prior year, there were no defaults or breaches of any of the loans.

Note 13 Provisions2017 2016

$ $Current provisionsEmployee benefits (i)

Annual leave:Unconditional and expected to settle within 12 months (ii) 188,226 198,480Unconditional and expected to settle after 12 months (iii) 112,614 82,154

Long service leave:Unconditional and expected to settle within 12 months (ii) 27,887 20,521Unconditional and expected to settle after 12 months (iii) 356,891 268,544

685,618 569,699Provisions for on-costs

Unconditional and expected to be settled within 12 months (ii) 33,024 30,931Unconditional and expected to be settled after 12 months (iii) 52,429 36,655

85,453 67,586Total current provisions 771,071 637,285

Non-current provisionsEmployee benefits (iii) (long service leave) 89,636 171,954Provisions for on-costs (iii) 10,253 19,409

Make-good provision (iv) (see also note 13(a)) 70,000 70,000Future stewardship services provision (see also note 13(a)) 349,100 141,600Other provisions (see also note 13(a)) 14,250 2,500Total non-current provisions 533,239 405,463

Total provisions 1,304,310 1,042,748Notes:

(ii) The amounts disclosed are nominal amounts.(iii) The amounts disclosed are discounted to present values.

(i) Provisions for employee benefits consist of amounts for annual leave and long service leave accrued by employees. On-costs such asworkers compensation insurance and superannuation are not employee benefits and are reflected as a separate provision.

(iv) In accordance with the lease agreement over the principal office, the Trust must remove any leasehold improvements from the leasedpremises and restore the premises to its original condition at the end of the lease term.

(ii) Other borrowings include unsecured purchasing card transactions which are repaid within the interest-free period.

(i) Secured by the assets leased. Finance leases are interest bearing and effectively secured as the rights to the leased assets revert to thelessor in the event of default.


Note 12 Borrowings

2017 2016$ $

Current borrowingsLease liabilities (i) 5,738 5,555Other borrowings (ii) 7,705 5,517

Total current borrowings 13,443 11,072

Non-current borrowingsLease liabilities (i) 21,469 27,207

Total non-current borrowings 21,469 27,207Total borrowings 34,912 38,279Notes:

(a) Maturity analysis of borrowingsPlease refer to Table 18.5 in Note 18 for the maturity analysis of borrowings.

(b) Defaults and breachesDuring the current and prior year, there were no defaults or breaches of any of the loans.

Note 13 Provisions2017 2016

$ $Current provisionsEmployee benefits (i)

Annual leave:Unconditional and expected to settle within 12 months (ii) 188,226 198,480Unconditional and expected to settle after 12 months (iii) 112,614 82,154

Long service leave:Unconditional and expected to settle within 12 months (ii) 27,887 20,521Unconditional and expected to settle after 12 months (iii) 356,891 268,544

685,618 569,699Provisions for on-costs

Unconditional and expected to be settled within 12 months (ii) 33,024 30,931Unconditional and expected to be settled after 12 months (iii) 52,429 36,655

85,453 67,586Total current provisions 771,071 637,285

Non-current provisionsEmployee benefits (iii) (long service leave) 89,636 171,954Provisions for on-costs (iii) 10,253 19,409

Make-good provision (iv) (see also note 13(a)) 70,000 70,000Future stewardship services provision (see also note 13(a)) 349,100 141,600Other provisions (see also note 13(a)) 14,250 2,500Total non-current provisions 533,239 405,463

Total provisions 1,304,310 1,042,748Notes:

(ii) The amounts disclosed are nominal amounts.(iii) The amounts disclosed are discounted to present values.


(iv) In accordance with the lease agreement over the principal office, the Trust must remove any leasehold improvements from the leasedpremises and restore the premises to its original condition at the end of the lease term.

(ii) Other borrowings include unsecured purchasing card transactions which are repaid within the interest-free period.

(i) Secured by the assets leased. Finance leases are interest bearing and effectively secured as the rights to the leased assets revert to thelessor in the event of default.


Note 13 Provisions (continued)

(a) Employee benefits and on-costs(i)

2017 2016

Current employee benefits $ $

Annual leave 300,840 280,634

Long service leave 384,778 289,065

Non-current employee benefits

Long service leave 89,636 171,954

Total employee benefits 775,254 741,653

Current on-costs 85,453 67,586

Non-current on-costs 10,253 19,409

Total on-costs 95,706 86,995

Total employee benefits and on-costs 870,960 828,648

Notes:

(b) Movement in provisions

Make-good On-costsFuture

stewardshipOther

Provisions Total2017 2017 2017 2017 2017

$ $ $ $ $Opening balance 70,000 86,995 141,600 2,500 301,095

Additional provisions recognised 0 37,448 207,500 11,750 256,698Reductions arising from payments/othersacrifices of future economic benefits 0 (28,737) 0 0 (28,737)

Closing balance 70,000 95,706 349,100 14,250 529,056

Current 0 85,453 0 0 85,453

Non-current 70,000 10,253 349,100 14,250 443,603

Closing balance 70,000 95,706 349,100 14,250 529,056


Page 36

Note 14 Other liabilities

2017 2016$ $

Current other liabilities

Funds held awaiting remittance(i):

Land Conservation Strategy 14,312 14,718

Marcus Knapple 2,456 2,444

Potter Farmland 49,732 49,490

AGL – Growling Grass Frog 145,846 142,126

Hume – Native Grasslands 238,620 236,395

Pimelea Fund 579,653 632,413

Amateur Gardeners Foundation 685,369 686,528

Golden Sun Moth Conservation Fund 134,639 132,322

PTV - Biomass management study 42,442 68,954Landowner payments held in trust(ii) 1,856,838 1,719,190

Deferred stewardship revenue 61,018 64,000

Other project funds committed 560,913 207,683

Other revenue received in advance 3,014,065 2,728,882Total current other liabilities 7,385,903 6,685,145

Non-current other liabilitiesLandowner payments held in trust(ii) 16,711,547 15,472,708

Deferred stewardship revenue 549,165 575,998Total non-current other liabilities 17,260,712 16,048,706

Total other liabilities 24,646,615 22,733,851Notes:

(ii) Landowner payments held in trust are funds the Trust holds on behalf of third party land owners under offset arrangements payable over10 years from the date of covenant registration. Interested earned on the funds is credited to the benefit of the landowner and paid annually.

(i) Funds held awaiting remittance are funds the Trust holds on behalf of third parties for specific projects. The funds are spent inaccordance with the agreement the Trust has with the third party. Interest earned on the funds is credited to the benefit of the fund.


Note 14 Other liabilities

2017 2016$ $

Current other liabilities

Funds held awaiting remittance(i):

Land Conservation Strategy 14,312 14,718

Marcus Knapple 2,456 2,444

Potter Farmland 49,732 49,490

AGL – Growling Grass Frog 145,846 142,126

Hume – Native Grasslands 238,620 236,395

Pimelea Fund 579,653 632,413

Amateur Gardeners Foundation 685,369 686,528

Golden Sun Moth Conservation Fund 134,639 132,322

PTV - Biomass management study 42,442 68,954Landowner payments held in trust(ii) 1,856,838 1,719,190

Deferred stewardship revenue 61,018 64,000

Other project funds committed 560,913 207,683

Other revenue received in advance 3,014,065 2,728,882Total current other liabilities 7,385,903 6,685,145

Non-current other liabilitiesLandowner payments held in trust(ii) 16,711,547 15,472,708

Deferred stewardship revenue 549,165 575,998Total non-current other liabilities 17,260,712 16,048,706

Total other liabilities 24,646,615 22,733,851Notes:

(ii) Landowner payments held in trust are funds the Trust holds on behalf of third party land owners under offset arrangements payable over10 years from the date of covenant registration. Interested earned on the funds is credited to the benefit of the landowner and paid annually.

(i) Funds held awaiting remittance are funds the Trust holds on behalf of third parties for specific projects. The funds are spent inaccordance with the agreement the Trust has with the third party. Interest earned on the funds is credited to the benefit of the fund.


Note 15 Leases

Finance leases

2017 2016 2017 2016$ $ $ $

Finance lease liabilities payable- Not longer than one year 6,537 6,537 5,738 5,216- Longer than one year and not longer than five years 21,992 28,529 21,469 27,546

Minimum future lease payments 28,529 35,066 27,207 32,762- Less future finance charges (1,321) (2,304)

Present value of minimum lease payments 27,208 32,762 27,207 32,762

Included in the financial statements as:

- Current borrowings lease liabilities (Note 12) 5,738 5,555

- Non-current borrowings lease liabilities (Note 12) 21,469 27,207

27,207 32,762Note:(i) Minimum future lease payments include the aggregate of all lease payments and any guaranteed residual.

Operating leases

2017 2016$ $

Non-cancellable operating lease payables

Not longer than one year 240,173 390,687

Longer than one year and not longer than five years 158,560 286,774

Total non-cancellable operating lease payables 398,733 677,461Total leases 398,733 677,461

Note 16 Commitments for expenditure

2017 2016$ $

Novated lease commitmentsPayable:Not longer than one year 19,547 18,251


Total novated lease commitments 45,609 60,837

Total commitments for expenditure 45,609 60,837

Present value of minimumfuture lease payments

Operating leases relate to office facilities with lease terms of between one and seven years and motor vehicle and IT equipmentleases with lease terms of three years. The Trust does not have an option to purchase the leased assets at lease expiry.Operating lease expenses recognised in the accounts was $362,241 (2016: $310,873).

All amounts shown in the commitments note are nominal amounts inclusive of GST.

The following commitments have not been recognised as liabilities in the financial statements:

Finance leases relate to a motor vehicle lease held with Vicfleet Lease Management with a lease term of three years. The Trusthas an option to purchase the leased assets at expiry of the lease.Interest incurred on assets held under finance leases was $983 (2016: $1,138).The written down value of assets held under finance leases is $27,010 (2016: $32,719).

Minimum future leasepayments(i)



Note 15 Leases

Finance leases

2017 2016 2017 2016$ $ $ $

Finance lease liabilities payable- Not longer than one year 6,537 6,537 5,738 5,216- Longer than one year and not longer than five years 21,992 28,529 21,469 27,546

Minimum future lease payments 28,529 35,066 27,207 32,762- Less future finance charges (1,321) (2,304)

Present value of minimum lease payments 27,208 32,762 27,207 32,762

Included in the financial statements as:

- Current borrowings lease liabilities (Note 12) 5,738 5,555

- Non-current borrowings lease liabilities (Note 12) 21,469 27,207

27,207 32,762Note:(i) Minimum future lease payments include the aggregate of all lease payments and any guaranteed residual.

Operating leases

2017 2016$ $

Non-cancellable operating lease payables

Not longer than one year 240,173 390,687


Total non-cancellable operating lease payables 398,733 677,461Total leases 398,733 677,461

Note 16 Commitments for expenditure

2017 2016$ $

Novated lease commitmentsPayable:Not longer than one year 19,547 18,251


Total novated lease commitments 45,609 60,837

Total commitments for expenditure 45,609 60,837

Present value of minimumfuture lease payments

Operating leases relate to office facilities with lease terms of between one and seven years and motor vehicle and IT equipmentleases with lease terms of three years. The Trust does not have an option to purchase the leased assets at lease expiry.Operating lease expenses recognised in the accounts was $362,241 (2016: $310,873).


The following commitments have not been recognised as liabilities in the financial statements:

Finance leases relate to a motor vehicle lease held with Vicfleet Lease Management with a lease term of three years. The Trusthas an option to purchase the leased assets at expiry of the lease.Interest incurred on assets held under finance leases was $983 (2016: $1,138).The written down value of assets held under finance leases is $27,010 (2016: $32,719).

Minimum future leasepayments(i)


Page 38

Note 17 Contingent assets and contingent liabilitiesThere are no known contingent assets or contingent liabilities. (2016: nil).

Note 18 Financial instruments

(a) Financial risk management objectives and policies

The Trust’s principal financial instruments comprise of: – cash and deposits – investment and other financial assets – receivables (excluding statutory receivables) – payables (excluding statutory payables).

The carrying amounts of the Trust’s financial assets and financial liabilities by category are disclosed in Table 18.1.

Table 18.1: Categorisation of financial instruments

2017

Contractualfinancial

assets – loansand

receivables

Contractualfinancialassets

/liabilitiesdesignated at

fair valuethrough

profit/loss


liabilities atamortised

cost

Total

$ $ $ $Contractual financial assets

Cash and deposits 4,723,575 4,723,575

Receivables: (i)

Sale of goods and services 750,018 750,018

Accrued investment income 260,868 260,868

Other receivables 126,000 126,000

Investments and other contractual financial assets:

Term deposits 27,741,114 27,741,114

Equities and managed investment schemes 4,627,014 4,627,014

Total contractual financial assets 33,601,575 4,627,014 0 38,228,589

Contractual financial liabilities

Payables (i) 686,043 686,043

Borrowings 34,912 34,912

Other financial liabilities 24,646,615 24,646,615

Total contractual financial liabilities 0 0 25,367,570 25,367,570

Note:

Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis ofmeasurement, and the basis on which income and expenses are recognised, with respect to each class of financial asset andfinancial liability above are disclosed in Note 1 to the financial statements.

The Trust’s main financial risks include credit risk, liquidity risk, interest rate risk and equity price risk. The Trust manages thesefinancial risks in accordance with its financial risk assessment reviews.

(i) The total amounts disclosed here exclude statutory amounts (e.g. amounts owing from Victorian Government and GST input tax creditrecoverable and taxes payable).


Note 18 Financial instruments (continued)

Table 18.1: Categorisation of financial instruments (continued)

2016


assets – loansand

receivables



fair valuethrough

profit/loss



cost

Total


Cash and deposits 1,888,430 0 0 1,888,430

Receivables: (i)

Sale of goods and services 1,374,161 0 0 1,374,161

Accrued investment income 350,070 0 0 350,070

Other receivables 297,393 0 0 297,393


Term deposits 28,465,489 0 0 28,465,489

Equities and managed investment schemes 0 4,822,699 0 4,822,699



Payables (i) 0 0 878,925 878,925

Borrowings 0 0 38,279 38,279

Other financial liabilities 0 0 22,733,851 22,733,851

Total contractual financial liabilities 0 0 23,651,055 23,651,055Notes:(i) The total amounts disclosed here exclude statutory amounts (e.g. amounts owing from Victorian Government and GST input tax creditrecoverable and taxes payable).



Table 18.1: Categorisation of financial instruments (continued)

2016


assets – loansand

receivables



fair valuethrough

profit/loss



cost

Total


Cash and deposits 1,888,430 0 0 1,888,430

Receivables: (i)

Sale of goods and services 1,374,161 0 0 1,374,161

Accrued investment income 350,070 0 0 350,070

Other receivables 297,393 0 0 297,393


Term deposits 28,465,489 0 0 28,465,489

Equities and managed investment schemes 0 4,822,699 0 4,822,699



Payables (i) 0 0 878,925 878,925

Borrowings 0 0 38,279 38,279

Other financial liabilities 0 0 22,733,851 22,733,851

Total contractual financial liabilities 0 0 23,651,055 23,651,055Notes:(i) The total amounts disclosed here exclude statutory amounts (e.g. amounts owing from Victorian Government and GST input tax creditrecoverable and taxes payable).

Page 40


Table 18.2: Net holding gain/(loss) on financial instruments by category(i)

2017Net holdinggain/(loss)

Total dividendincome

Total interestincome/

(expense)

Impairmentloss

Total

$ $ $ $ $Contractual financial assetsFinancial assets – loans and receivables 854,116 854,116Financial assets designated at fair valuethrough profit/loss 264,826 159,473 424,299

Total contractual financial assets 264,826 159,473 854,116 0 1,278,415


Financial liabilities at amortised cost (522,221) (522,221)

Total contractual financial liabilities 0 0 (522,221) 0 (522,221)Notes:

2016Net holdinggain/(loss)

Total dividendincome

Total interestincome/

(expense)

Impairmentloss

Total

$ $ $ $ $Contractual financial assetsFinancial assets – loans and receivables 920,276 0 920,276Financial assets designated at fair valuethrough profit/loss 2,135 206,217 0 0 208,352

Total contractual financial assets 2,135 206,217 920,276 0 1,128,628


Financial liabilities at amortised cost 0 0 (538,704) 0 (538,704)

Total contractual financial liabilities 0 0 (538,704) 0 (538,704)

The net holding gains or losses disclosed above are determined as follows:

– For cash and cash equivalents and loans or receivables, the net gain or loss is calculated by taking the interest revenue,plus dividend revenue, plus or minus foreign exchange gains or losses arising from revaluation of the financial assets, andminus 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 orminus foreign exchange gains or losses arising from revaluation of the financial liabilities measured at amortised cost.

(i) Amounts disclosed in this table exclude holding gains and losses related to statutory financial assets and liabilities.



(b) Credit risk

Table 18.3: Credit quality of contractual financial assets that are neither past due nor impaired(i)

Governmentagencies

Financialinstitutions(min. AA-

credit rating)

Otherfinancial

institutions(min. BBB+

credit rating)

Other Equities andmanaged

funds

Total

$ $ $ $ $ $2017

Cash and deposits 3,610,753 1,110,722 2,100 4,723,575

Sale of goods and services(i) 244,020 22,000 483,998 750,018

Accrued investment income 182,191 78,677 260,868


Term deposits 20,124,676 7,616,438 27,741,114


Total contractual financial assets 244,020 23,939,620 8,805,837 612,098 4,627,014 38,228,589

2016

Cash and deposits 1,886,330 2,100 1,888,430

Sale of goods and services(i) 529,523 844,638 1,374,161



Term deposits 19,274,034 9,191,455 28,465,489


Total contractual financial assets 529,523 21,374,045 9,327,844 1,144,131 4,822,699 37,198,242

Note:

Page 42

(i) The total amounts disclosed here exclude statutory amounts (e.g. amounts owing from Victorian Government and GST input tax creditrecoverable).

Credit risk arises from the financial assets of the Trust, which comprise cash and deposits, trade and other receivables and held tomaturity investments. The Trust's exposure to credit risk arises from the potential default of counter parties on their contractualobligations resulting in financial loss to the Trust.

Credit risk associated with the Trust’s financial assets is minimal. Most loans and receivables are with government-fundedorganisations, and cash, deposits and held-to-maturity investments are held at a range of financial institutions with high credit ratingsof a minimum BBB+.Financial assets available-for-sale includes managed investments which are managed by the Myer Family Company and listedIn addition, the Trust does not hedge its financial assets and mainly obtains financial assets that are on fixed interest.

Provision for impairment for financial assets is recognised when there is objective evidence that the Trust will not be able to collect areceivable.

The carrying amount of financial assets recorded in the financial statements, net of any allowances for losses, represents the Trust’smaximum exposure to credit risk.



(b) Credit risk

Table 18.3: Credit quality of contractual financial assets that are neither past due nor impaired(i)

Governmentagencies

Financialinstitutions(min. AA-

credit rating)

Otherfinancial

institutions(min. BBB+

credit rating)

Other Equities andmanaged

funds

Total

$ $ $ $ $ $2017

Cash and deposits 3,610,753 1,110,722 2,100 4,723,575

Sale of goods and services(i) 244,020 22,000 483,998 750,018



Term deposits 20,124,676 7,616,438 27,741,114


Total contractual financial assets 244,020 23,939,620 8,805,837 612,098 4,627,014 38,228,589

2016

Cash and deposits 1,886,330 2,100 1,888,430

Sale of goods and services(i) 529,523 844,638 1,374,161



Term deposits 19,274,034 9,191,455 28,465,489


Total contractual financial assets 529,523 21,374,045 9,327,844 1,144,131 4,822,699 37,198,242

Note:

Page 42


Credit risk arises from the financial assets of the Trust, which comprise cash and deposits, trade and other receivables and held tomaturity investments. The Trust's exposure to credit risk arises from the potential default of counter parties on their contractualobligations resulting in financial loss to the Trust.

Credit risk associated with the Trust’s financial assets is minimal. Most loans and receivables are with government-fundedorganisations, and cash, deposits and held-to-maturity investments are held at a range of financial institutions with high credit ratingsof a minimum BBB+.Financial assets available-for-sale includes managed investments which are managed by the Myer Family Company and listedIn addition, the Trust does not hedge its financial assets and mainly obtains financial assets that are on fixed interest.

Provision for impairment for financial assets is recognised when there is objective evidence that the Trust will not be able to collect areceivable.

The carrying amount of financial assets recorded in the financial statements, net of any allowances for losses, represents the Trust’smaximum exposure to credit risk.


Table 18.4: Ageing analysis of contractual financial assets

Less than 1month 1 – 3 months 3 months

– 1 year$ $ $ $ $ $

2017

Receivables(i):

Sales of goods and services 750,018 619,667 825 129,526

Interest receivable 260,868 260,868



Term deposits 27,741,114 27,741,114

Equities and managed investment schemes(ii) 4,627,014 4,627,014

Total 33,505,014 33,374,663 825 0 129,526 0

2016

Receivables(i):

Sales of goods and services 1,374,161 1,017,195 241,902 115,064

Interest receivable 350,070 350,070



Term deposits 28,465,489 28,465,489

Equities and managed investment schemes(ii) 4,822,699 4,818,427 4,272

Total 35,309,812 34,948,574 241,902 0 115,064 4,272Notes:

Contractual financial assets that are either past due or impaired

Page 43

Past due, not impaired

(ii) Equities included shares in Teys Income Builder which were received in a bequest in 2009-10. Its responsible entity, TPFL, was placed inadministration on 5 March 2010 and into liquidation on 20 April 2010. A final payment was received from the liquidator during the year. The value ofthese shares at 30 June 2017 was $nil (2016: $4,272).

There are no material financial assets which are individually determined to be impaired other than those detailed above in Table 18.4.

Currently the Trust 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 theyare stated at the carrying amounts as indicated. Table 18.4 discloses the ageing only of financial assets that are past due but notimpaired.

Not past dueand notimpaired


Impairedfinancialassets(ii)

Carryingamount



(c) Liquidity risk

The following tables discloses the contractual maturity analysis for the Trust’s contractual financial liabilities.

Table 18.5: Maturity analysis of contractual financial liabilities(ii)

Less than 1month

1 month to 1year 1 year or more

$ $ $ $ $2017

Payables(i):

Contractual payables at amortised cost 686,043 686,043 605,216 80,827

Other financial liabilities at amortised cost 24,646,615 24,646,615 1,025,017 6,360,887 17,260,711

Borrowings:

Lease liabilities 27,207 27,207 478 5,260 21,469

Other borrowings 7,705 7,705 7,705

Total 25,367,570 25,367,570 1,638,416 6,446,974 17,282,180

2016

Payables(i):


Other financial liabilities at amortised cost 22,733,851 22,733,851 879,507 5,805,638 16,048,705

Borrowings:



Total 23,651,055 23,651,055 1,694,289 5,880,854 16,075,912Notes:

(ii) Maturity analysis is presented using the undiscounted cash flows.

(d) Market risk

Interest rate risk

Equity price risk

The Trust’s exposure to equity price risk is set out in Table 18.7.

Carryingamount

Nominalamount

Maturity dates

Liquidity risk arises when the Trust is unable to meet its financial obligations as they fall due. The Trust operates under theGovernment fair payments policy of settling financial obligations within 30 days and in the event of a dispute, making paymentswithin 30 days from the date of resolution. It also continuously manages risk through monitoring future cash flows and maturitiesplanning to ensure adequate holding of high quality liquid assets.

Maximum exposure to liquidity risk is the carrying amounts of financial liabilities as disclosed in the face of the Balance Sheet.

The Trust’s exposures to market risk are primarily through interest rate risk and equity price risks. Objectives, policies andprocesses used to manage each of these risks are disclosed in the paragraphs below.

(i) The carrying amount of financial liabilities disclosed here excludes statutory payables (e.g. taxes payable).

The carrying amounts of financial assets and financial liabilities that are exposed to interest rates are set out in Table 18.6. Inaddition, the Trust’s sensitivity to interest rate risk is set out in Table 18.7.

The Trust’s exposure to liquidity risk is deemed insignificant. Cash for unexpected events is generally sourced from funds heldat call.

The Trust manages interest rate risk by undertaking fixed rate financial instruments with maturity profiles mostly spread over 3to 24 months. The Trust does not enter into interest rate swaps.

The Trust is exposed to equity price risk through investments in managed investment schemes which are invested in domesticequities and direct equity investments. The value of dividend income and imputation credits will also vary. The managed fundsare administered by JB Were. The fund manager on behalf of the Trust closely monitors performance and manages the equityprice risk through diversification of its investment portfolio. Direct equity investments are sometimes received from bequests andare liquidated once registered ownership is received.

Page 44


Table 18.6: Interest rate exposure of financial instruments

Fixed interestrate

Variableinterest rate

Non-interestbearing

2017 % $ $ $ $Financial assets

Cash and deposits 1.00% 4,723,575 4,502,343 221,232

Receivables(i):Sale of goods and services 750,018 750,018


Other receivables 126,000 126,000Investments and other contractual financialassets:

Term deposits 2.68% 27,741,114 27,741,114Equities and managed investmentschemes 0.65% 4,627,014 0 1,001,295 3,625,719

Total financial assets 38,228,589 27,741,114 5,503,638 4,983,837

Financial liabilities

Payables(i):Payables 2.52% 686,043 464,395 221,648

Borrowings 3.25% 34,912 27,207 7,705

Other financial liabilities(ii) 2.52% 24,646,615 20,461,454 4,185,161

Total financial liabilities 25,367,570 20,488,661 472,100 4,406,809

2016

Financial assets

Cash and cash equivalents 1.25% 1,888,430 1,744,155 144,275

Receivables(i):Sale of goods and services 1,374,161 1,374,161


Other receivables 2.75% 297,393 100,000 197,393Investments and other contractual financialassets:

Term deposits 2.99% 28,465,489 28,465,489Equities and managed investmentschemes 1.15% 4,822,699 0 602,994 4,219,705




Borrowings 3.25% 38,279 32,762 5,517

Other financial liabilities(ii) 2.88% 22,733,851 19,157,288 0 3,576,563

Total financial liabilities 23,651,055 19,190,050 459,179 4,001,826Notes:

Weightedaverageeffective

interest rate

(i) The carrying amounts disclosed here exclude statutory amounts (e.g. amounts owing from Victorian Government, GST input tax creditrecoverable, and GST payables).

Interest rate exposureCarryingamount

(ii) Weighted average effective interest rate reflects the interest earned and allocated to trust funds held in accordance with the variousagreements.



(c) Liquidity risk

The following tables discloses the contractual maturity analysis for the Trust’s contractual financial liabilities.

Table 18.5: Maturity analysis of contractual financial liabilities(ii)

Less than 1month

1 month to 1year 1 year or more

$ $ $ $ $2017

Payables(i):


Other financial liabilities at amortised cost 24,646,615 24,646,615 1,025,017 6,360,887 17,260,711

Borrowings:



Total 25,367,570 25,367,570 1,638,416 6,446,974 17,282,180

2016

Payables(i):


Other financial liabilities at amortised cost 22,733,851 22,733,851 879,507 5,805,638 16,048,705

Borrowings:



Total 23,651,055 23,651,055 1,694,289 5,880,854 16,075,912Notes:

(ii) Maturity analysis is presented using the undiscounted cash flows.

(d) Market risk

Interest rate risk

Equity price risk

The Trust’s exposure to equity price risk is set out in Table 18.7.

Carryingamount

Nominalamount

Maturity dates

Liquidity risk arises when the Trust is unable to meet its financial obligations as they fall due. The Trust operates under theGovernment fair payments policy of settling financial obligations within 30 days and in the event of a dispute, making paymentswithin 30 days from the date of resolution. It also continuously manages risk through monitoring future cash flows and maturitiesplanning to ensure adequate holding of high quality liquid assets.

Maximum exposure to liquidity risk is the carrying amounts of financial liabilities as disclosed in the face of the Balance Sheet.

The Trust’s exposures to market risk are primarily through interest rate risk and equity price risks. Objectives, policies andprocesses used to manage each of these risks are disclosed in the paragraphs below.

(i) The carrying amount of financial liabilities disclosed here excludes statutory payables (e.g. taxes payable).

The carrying amounts of financial assets and financial liabilities that are exposed to interest rates are set out in Table 18.6. Inaddition, the Trust’s sensitivity to interest rate risk is set out in Table 18.7.

The Trust’s exposure to liquidity risk is deemed insignificant. Cash for unexpected events is generally sourced from funds heldat call.

The Trust manages interest rate risk by undertaking fixed rate financial instruments with maturity profiles mostly spread over 3to 24 months. The Trust does not enter into interest rate swaps.

The Trust is exposed to equity price risk through investments in managed investment schemes which are invested in domesticequities and direct equity investments. The value of dividend income and imputation credits will also vary. The managed fundsare administered by JB Were. The fund manager on behalf of the Trust closely monitors performance and manages the equityprice risk through diversification of its investment portfolio. Direct equity investments are sometimes received from bequests andare liquidated once registered ownership is received.

Page 44


Table 18.6: Interest rate exposure of financial instruments

Fixed interestrate

Variableinterest rate

Non-interestbearing

2017 % $ $ $ $Financial assets

Cash and deposits 1.00% 4,723,575 4,502,343 221,232

Receivables(i):Sale of goods and services 750,018 750,018


Other receivables 126,000 126,000Investments and other contractual financialassets:

Term deposits 2.68% 27,741,114 27,741,114Equities and managed investmentschemes 0.65% 4,627,014 0 1,001,295 3,625,719




Borrowings 3.25% 34,912 27,207 7,705

Other financial liabilities(ii) 2.52% 24,646,615 20,461,454 4,185,161

Total financial liabilities 25,367,570 20,488,661 472,100 4,406,809

2016

Financial assets

Cash and cash equivalents 1.25% 1,888,430 1,744,155 144,275

Receivables(i):Sale of goods and services 1,374,161 1,374,161


Other receivables 2.75% 297,393 100,000 197,393Investments and other contractual financialassets:

Term deposits 2.99% 28,465,489 28,465,489Equities and managed investmentschemes 1.15% 4,822,699 0 602,994 4,219,705




Borrowings 3.25% 38,279 32,762 5,517

Other financial liabilities(ii) 2.88% 22,733,851 19,157,288 0 3,576,563

Total financial liabilities 23,651,055 19,190,050 459,179 4,001,826Notes:

Weightedaverageeffective

interest rate


Interest rate exposureCarryingamount

(ii) Weighted average effective interest rate reflects the interest earned and allocated to trust funds held in accordance with the variousagreements.



Sensitivity disclosure analysis and assumptions

• a movement of 50 basis points up and down (2016: 100 basis points up and down) in market interest rates (AUD) • a movement of 10 per cent up and down (2016: 10 per cent) for the top ASX 200 index.

Table 18.7: Market risk exposure

- 0.5 per cent +0.5 per cent - 10 per cent +10 per cent

Net result Net result Net result Net result2017 $ $ $ $ $Contractual financial assets

Cash and cash equivalents 4,723,575 (22,512) 22,512 0 0

Receivables:

Sale of goods and services 750,018 0 0 0 0

Accrued investment income 260,868 0 0 0 0

Other receivables 126,000 0 0 0 0Investments and other contractual financialassets:

Term deposits 27,741,114 (138,706) 138,706 0 0Equities and managed investmentschemes(i) 4,627,014 (5,006) 5,006 (362,572) 362,572

Total impact 38,228,589 (166,224) 166,224 (362,572) 362,572

- 1 per cent +1 per cent - 10 per cent +10 per cent



Receivables:

Sale of goods and services 1,374,161 0 0 0 0


Other receivables 297,393 (1,000) 1,000 0 0Investments and other contractual financialassets:


Total impact 37,198,242 (309,126) 309,126 (421,971) 421,971Note:

Interest rate risk Other price risk

Interest rate risk

(i) Non-interest bearing managed funds include $2,897,401 of domestic equities (2016: $3,043,992) and $728,319 of fixed interest trusts(2016: $1,175,722).

Carryingamount

Carryingamount

Other price risk

Table 18.7 discloses the material impact on net result and equity for each category of financial instrument held by the Trust atyear-end if the above movements were to occur.

The Trust’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 Trust’s fund managers cannot be expectedto predict movements in market rates and prices and sensitivity analyses shown are for illustrative purposes only. The followingmovements are ‘reasonably possible’ over the next 12 months:



Sensitivity disclosure analysis and assumptions

• a movement of 50 basis points up and down (2016: 100 basis points up and down) in market interest rates (AUD) • a movement of 10 per cent up and down (2016: 10 per cent) for the top ASX 200 index.

Table 18.7: Market risk exposure

- 0.5 per cent +0.5 per cent - 10 per cent +10 per cent



Receivables:

Sale of goods and services 750,018 0 0 0 0


Other receivables 126,000 0 0 0 0Investments and other contractual financialassets:


Total impact 38,228,589 (166,224) 166,224 (362,572) 362,572

- 1 per cent +1 per cent - 10 per cent +10 per cent



Receivables:

Sale of goods and services 1,374,161 0 0 0 0


Other receivables 297,393 (1,000) 1,000 0 0Investments and other contractual financialassets:


Total impact 37,198,242 (309,126) 309,126 (421,971) 421,971Note:

Interest rate risk Other price risk

Interest rate risk

(i) Non-interest bearing managed funds include $2,897,401 of domestic equities (2016: $3,043,992) and $728,319 of fixed interest trusts(2016: $1,175,722).

Carryingamount

Carryingamount

Other price risk

Table 18.7 discloses the material impact on net result and equity for each category of financial instrument held by the Trust atyear-end if the above movements were to occur.

The Trust’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 Trust’s fund managers cannot be expectedto predict movements in market rates and prices and sensitivity analyses shown are for illustrative purposes only. The followingmovements are ‘reasonably possible’ over the next 12 months:

Page 46


(e) Fair value

Table 18.8: Comparison between carrying and fair value

Carryingamount Fair value Carrying

amount Fair value

2017 2017 2016 2016


Cash and deposits 4,723,575 4,723,575 1,888,430 1,888,430

Receivables(i):Sale of goods and services 750,018 750,018 1,374,161 1,374,161

Accrued investment income 260,868 260,868 350,070 350,070

Other receivables 126,000 126,000 297,393 297,393Investments and other contractual financialassets:

Term deposits 27,741,114 27,741,114 28,465,489 28,465,489Equities and managed investmentschemes 4,627,014 4,627,014 4,822,699 4,822,699

Total contractual financial assets 38,228,589 38,228,589 37,198,242 37,198,242


Payables(i):Payables 686,043 686,043 878,925 878,925

Borrowings 34,912 34,912 38,279 38,279

Other financial liabilities 24,646,615 24,646,615 22,733,851 22,733,851

Total contractual financial liabilities 25,367,570 25,367,570 23,651,055 23,651,055Note:

The fair values and net fair values of financial instrument assets and liabilities are determined as follows:

• Level 1 - the fair value of financial instruments with standard terms and conditions and traded in active liquid markets are determined with reference to quoted market prices;

The Trust considers that the carrying amount of other financial instrument assets and liabilities recorded in the financialstatements to be a fair approximation of their fair values, because of the short-term nature of the financial instruments and theexpectation that they will be paid in full.

• 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 following table shows that the fair values of all of the financial assets and liabilities are the same as the carrying amounts.



Table 18.9: Financial assets measured at fair value

Level 1 (i) Level 2 (i) Level 3

2017 $ $ $ $Financial assets at fair value through profit or loss

Managed investment schemes 4,627,014 1,629,604 2,997,410 0

Total 4,627,014 1,629,604 2,997,410 0

2016Financial assets at fair value through profit or loss

Available-for-sale securities - listed securities 562,561 558,289 4,272 0

Managed investment schemes 4,260,138 1,410,347 2,849,791 0

Total 4,822,699 1,968,636 2,854,063 0Note:

Listed securities

Managed investment schemes

Carryingamount



The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in acurrent transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptionswere used to estimate fair value:

Listed Securities includes shares in Teys Income Builder which were received in a bequest in 2009-10. Its responsible entity,TPFL, was placed in administration on 5 March 2010 and into liquidation on 20 April 2010. A final payment was received fromthe liquidator during the year. The value of these shares at 30 June 2017 was $nil (2016: $4,272). The Trust categorises theseinstruments as level 2. The remainder of listed securities are direct investment in equities and the value of these at 30 June2017 was $nil (2016: $558,289) and the Trust classifies these as level 1.

The managed investment schemes are managed by JB Were and include direct investment in equities and managed funds.The Trust classifies these as level 1 (direct investment in equities) and level 2 (managed funds).

(i) There is no significant transfer between level 1 and level 2

Page 48

Note 19 Cash flow information

(a) Reconciliation of cash and cash equivalents

2017 2016$ $

Cash on hand 2,100 2,100

Cash at bank 219,132 142,175

Cash on deposit at call 3,391,621 1,744,155

Australian dollar term deposits < 3 months 1,110,722 0

Balance as per cash flow statement 4,723,575 1,888,430

(b) Reconciliation of net result for the period to net cash flows from operating activities

2017 2016$ $

Net result for the period (470,183) (246,980)

Non-cash movements:

(Gain)/loss on sale of non-current assets (9,608) (1,400)

(Gain)/loss on other financial assets held at fair value (264,826) (2,135)

Depreciation and amortisation of non-current assets 280,424 277,817

Equities received from bequest 0 (575,224)

Movements in assets and liabilities:

(Increase)/decrease in receivables – Sale of goods and services 624,143 (195,077)

(Increase)/decrease in interest receivable 89,202 (56,507)

(Increase)/decrease in other assets (213,768) (168,601)

Increase/(decrease) in payables (213,076) (200,078)

Increase (decrease) in provisions 261,562 173,640

Increase/(decrease) in other liabilities 536,277 (173,269)

Net cash flows from/(used in) operating activities 620,147 (1,167,814)


Note 19 Cash flow information

(a) Reconciliation of cash and cash equivalents

2017 2016$ $

Cash on hand 2,100 2,100

Cash at bank 219,132 142,175

Cash on deposit at call 3,391,621 1,744,155

Australian dollar term deposits < 3 months 1,110,722 0

Balance as per cash flow statement 4,723,575 1,888,430

(b) Reconciliation of net result for the period to net cash flows from operating activities

2017 2016$ $

Net result for the period (470,183) (246,980)

Non-cash movements:

(Gain)/loss on sale of non-current assets (9,608) (1,400)

(Gain)/loss on other financial assets held at fair value (264,826) (2,135)

Depreciation and amortisation of non-current assets 280,424 277,817

Equities received from bequest 0 (575,224)

Movements in assets and liabilities:

(Increase)/decrease in receivables – Sale of goods and services 624,143 (195,077)

(Increase)/decrease in interest receivable 89,202 (56,507)

(Increase)/decrease in other assets (213,768) (168,601)

Increase/(decrease) in payables (213,076) (200,078)

Increase (decrease) in provisions 261,562 173,640

Increase/(decrease) in other liabilities 536,277 (173,269)

Net cash flows from/(used in) operating activities 620,147 (1,167,814)


Note 20 Reserves

2017 2016$ $

Physical asset revaluation surplus (i)

Balance at the beginning of the financial year 15,569,706 13,608,809Revaluation increments/(decrements) (766,900) 1,960,897Balance at the end of the financial year 14,802,806 15,569,706Donations surplus (ii)

Balance at the beginning of the financial year 3,421,388 4,168,940Transfers to/(from) accumulated surplus:

Interest on funds held less administration fee 20,096 33,700Donations for reserve and sale of properties 303,818 401,679Funds appropriated and properties acquired (661,072) (1,182,931)

Balance at the end of the financial year 3,084,230 3,421,388Covenant stewardship surplus (iii)


Interest, dividends, gain or loss on managed funds held less administration fee 55,653 29,355Surpluses transferred for future covenant monitoring 42,164 18,000

Funds appropriated on covenant monitoring program (101,222) 0Balance at the end of the financial year 1,577,326 1,580,731Properties surplus (iv)

Balance at the beginning of the financial year 406,248 406,248Balance at the end of the financial year 406,248 406,248Bequest surplus (v)


Interest, dividends, gain on shares on funds held less administration fee 31,007 22,364Funds appropriated (489,952) (277,397)

Balance at the end of the financial year 1,238,078 1,697,023Total reserves 21,108,688 22,675,096Notes:

(v) Bequest surplus funds are held in trust for specified purposes.

(iii) The covenant stewardship surplus is for monitoring of covenanted properties and approved management expenditure. The Trust hasadopted the policy of transferring $600 for each new covenant to the covenant stewardship reserve.(iv) The properties surplus is for property purchases and management, educational and legal costs for Trust properties.

(ii) Donations surplus funds are derived from Government grants and donations from other organisations or individuals. These donations aredirected towards property purchases or are held in trust for specified purposes.

(i) The physical asset revaluation surplus records increments and decrements on the revaluation of non-current assets.


Note 20 Reserves

2017 2016$ $

Physical asset revaluation surplus (i)

Balance at the beginning of the financial year 15,569,706 13,608,809Revaluation increments/(decrements) (766,900) 1,960,897Balance at the end of the financial year 14,802,806 15,569,706Donations surplus (ii)


Interest on funds held less administration fee 20,096 33,700Donations for reserve and sale of properties 303,818 401,679Funds appropriated and properties acquired (661,072) (1,182,931)

Balance at the end of the financial year 3,084,230 3,421,388Covenant stewardship surplus (iii)


Interest, dividends, gain or loss on managed funds held less administration fee 55,653 29,355Surpluses transferred for future covenant monitoring 42,164 18,000

Funds appropriated on covenant monitoring program (101,222) 0Balance at the end of the financial year 1,577,326 1,580,731Properties surplus (iv)

Balance at the beginning of the financial year 406,248 406,248Balance at the end of the financial year 406,248 406,248Bequest surplus (v)


Interest, dividends, gain on shares on funds held less administration fee 31,007 22,364Funds appropriated (489,952) (277,397)

Balance at the end of the financial year 1,238,078 1,697,023Total reserves 21,108,688 22,675,096Notes:

(v) Bequest surplus funds are held in trust for specified purposes.

(iii) The covenant stewardship surplus is for monitoring of covenanted properties and approved management expenditure. The Trust hasadopted the policy of transferring $600 for each new covenant to the covenant stewardship reserve.(iv) The properties surplus is for property purchases and management, educational and legal costs for Trust properties.

(ii) Donations surplus funds are derived from Government grants and donations from other organisations or individuals. These donations aredirected towards property purchases or are held in trust for specified purposes.

(i) The physical asset revaluation surplus records increments and decrements on the revaluation of non-current assets.

Page 50

Note 21 Accumulated surplus

2017 2016$ $

Accumulated surplus at the beginning of the financial year 11,805,976 11,097,726

Transfers (to)/from reserves:

Donations reserve 337,158 747,552

Covenant stewardship reserve 3,405 (47,355)

Bequest reserve 458,945 255,033

Net result for the reporting period (470,183) (246,980)

Accumulated surplus at the end of the financial year 12,135,301 11,805,976

Note 22 Responsible persons

NamesThe persons who held the positions of Ministers and Accountable Officers in the Trust are as follows:

Responsible Minister:Hon Lily D'Ambrosio MP, Minister for Energy, Environment and Climate Change 1 July 2016 to 30 June 2017

Governing Board of Trustees:Max Ervin (Chairman) 1 July 2016 to 30 June 2017Geoff Driver (Deputy Chairman) 1 July 2016 to 30 June 2017Camilla Graves 1 July 2016 to 20 April 2017Sylvia Geddes 1 July 2016 to 20 April 2017Dr Gregory Moore 1 July 2016 to 30 June 2017Dr Mick Lumb 1 July 2016 to 20 April 2017Gayle Austen 1 July 2016 to 30 June 2017Carol Bennetto 1 July 2016 to 30 June 2017Charles Meredith 1 July 2016 to 30 June 2017Amanda Noble 1 July 2016 to 30 June 2017

The Trust for Nature (Victoria) Board is established under the Victorian Conservation Trust Act 1972 .

Chief Executive Officer:Victoria Marles 1 July 2016 to 30 June 2017

Amounts relating to Ministers are disclosed in the financial report of the Department of Parliamentary Services.

Remuneration

$0 - $9,999 (2015-16: $0 - $9,999).

Remuneration received or receivable by the Chief Executive Officer during the reporting period was in the range:$200,000 – $209,999 (2015-16: $190,000 – $199,999).

In accordance with the Ministerial Directions issued by the Minister of Finance under the Financial Management Act 1994 , thefollowing disclosures are made regarding responsible persons for the reporting period.

Remuneration received or receivable by the Trustees is in the range $414 - $500 per sitting (2015-16: $404 - $488). Trusteesmay elect to receive sitting fees. Total sitting fees paid in 2016-17 were $29,270 ( 2015-16: $24,480). The remuneration of theTrustees fell within the band:


Note 23 Remuneration of executives

Other long-term benefits include long service leave, other long service benefits or deferred compensation.Termination benefits include termination of employment payments, such as severance packages.

2017 2016 (a)

$ $Short-term employee benefits 135,241Post-employment benefits 12,466Other long-term benefits 4,014Total remuneration (a)(b) 151,721Total number of executives 1 1Total annualised employee equivalents (c) 1 1Notes:

Note 24 Related parties

The Trust is a wholly owned and controlled entity of the State of Victoria.

Related parties of the Trust include:

All related party transactions have been entered into on an arm's length basis.

Significant transactions with government-related entities

The Trust received funding from government-related entities of $3,544,451 (2016: $3,183,564).

During the year, the Trust had the following government-related entity transactions: - Department of Environment, Land, Water and Planning - Operating grant recurrent $435,000 (2016: $443,301); - Department of Environment, Land, Water and Planning - Operating grant non-recurrent $1,050,000 (2016: $350,000); - State Government grants $1,909,451 (2016: $2,255,263); and - State Government grants used to acquire properties $150,000 (2016: $135,000).

- all key management personnel and their close family members and personal business interests (controlled entities, jointventures and entities they have significant influence over); - all cabinet members and their close family members; and - all departments and public sector entities that are controlled and consolidated into the whole of state consolidated financialstatements.

The number of executive officers, other than ministers and accountable officers, and their total remuneration during thereporting period are shown in the table below. Total annualised employee equivalents provides a measure of full time equivalentexecutive officers over the reporting period.Remuneration comprises employee benefits in all forms of consideration paid, payable or provided by the entity, or on behalf ofthe entity, in exchange for services rendered, and is disclosed in the following categories.Short-term employee benefits include amounts such as wages, salaries, annual leave or sick leave that are usually paid orpayable on a regular basis, as well as non-monetary benefits such as allowances and free or subsidised goods or services.Post-employment benefits include pensions and other retirement benefits paid or payable on a discrete basis whenemployment has ceased.

Remuneration of executive officers(including Key Management Personnel disclosed in Note 24)

(a) No comparatives have been reported because remuneration in the prior year was determined in line with the basis and definition underFRD 21B. Remuneration previously excluded non-monetary benefits and comprised any money, consideration or benefit received orreceivable, excluding reimbursement of out-of-pocket expenses, including any amount received or receivable from a related party transaction.Refer to the prior year's financial statements for executive remuneration for the 2015-16 period.

(b) The total number of executive officers includes persons who meet the definition of Key Management Personnel (KMP) of the entity underAASB 124 Related Party Disclosures and are also reported within the related parties note disclosure (Note 24).(c) Annualised employee equivalent is based on the time fraction worked over the reporting period.


Note 23 Remuneration of executives

Other long-term benefits include long service leave, other long service benefits or deferred compensation.Termination benefits include termination of employment payments, such as severance packages.

2017 2016 (a)

$ $Short-term employee benefits 135,241Post-employment benefits 12,466Other long-term benefits 4,014Total remuneration (a)(b) 151,721Total number of executives 1 1Total annualised employee equivalents (c) 1 1Notes:

Note 24 Related parties

The Trust is a wholly owned and controlled entity of the State of Victoria.

Related parties of the Trust include:

All related party transactions have been entered into on an arm's length basis.

Significant transactions with government-related entities

The Trust received funding from government-related entities of $3,544,451 (2016: $3,183,564).

During the year, the Trust had the following government-related entity transactions: - Department of Environment, Land, Water and Planning - Operating grant recurrent $435,000 (2016: $443,301); - Department of Environment, Land, Water and Planning - Operating grant non-recurrent $1,050,000 (2016: $350,000); - State Government grants $1,909,451 (2016: $2,255,263); and - State Government grants used to acquire properties $150,000 (2016: $135,000).

- all key management personnel and their close family members and personal business interests (controlled entities, jointventures and entities they have significant influence over); - all cabinet members and their close family members; and - all departments and public sector entities that are controlled and consolidated into the whole of state consolidated financialstatements.

The number of executive officers, other than ministers and accountable officers, and their total remuneration during thereporting period are shown in the table below. Total annualised employee equivalents provides a measure of full time equivalentexecutive officers over the reporting period.Remuneration comprises employee benefits in all forms of consideration paid, payable or provided by the entity, or on behalf ofthe entity, in exchange for services rendered, and is disclosed in the following categories.Short-term employee benefits include amounts such as wages, salaries, annual leave or sick leave that are usually paid orpayable on a regular basis, as well as non-monetary benefits such as allowances and free or subsidised goods or services.Post-employment benefits include pensions and other retirement benefits paid or payable on a discrete basis whenemployment has ceased.

Remuneration of executive officers(including Key Management Personnel disclosed in Note 24)

(a) No comparatives have been reported because remuneration in the prior year was determined in line with the basis and definition underFRD 21B. Remuneration previously excluded non-monetary benefits and comprised any money, consideration or benefit received orreceivable, excluding reimbursement of out-of-pocket expenses, including any amount received or receivable from a related party transaction.Refer to the prior year's financial statements for executive remuneration for the 2015-16 period.

(b) The total number of executive officers includes persons who meet the definition of Key Management Personnel (KMP) of the entity underAASB 124 Related Party Disclosures and are also reported within the related parties note disclosure (Note 24).(c) Annualised employee equivalent is based on the time fraction worked over the reporting period.

Page 52

Note 24 Related parties (continued)

2017$

Short-term employee benefits 375,926Post-employment benefits 31,686Other long-term benefits 12,070Total (a) 419,682Notes:

Transactions and balances with key management personnel and other related parties

Note 25 Ex-gratia expenses

2017 2016$ $

Ex-gratia expenses 0 0Total ex-gratia expenses 0 0Notes:

Note 26 Remuneration of auditors

2017 2016$ $

Victorian Auditor-General’s Office:

Audit or review of the financial statements 16,900 16,500

Total amount 16,900 16,500

No other services were performed during the reporting period.

Note 27 Subsequent events

There are no events or transactions subsequent to the reporting date which would render any particulars included in thefinancial statements to be misleading or inaccurate.

(i) Includes ex-gratia expenses greater than or equal to $5,000 or those considered material in nature. There were no such ex-gratia expenses in 2016-17 (2015-16: nil).

Compensation of KMPs

(a) Note that KMPs are also reported in the disclosure of remuneration of executive officers (Note 23).

There were no related party transactions that involved key management personnel, their close family members and theirpersonal business interests.

Key management personnel of the Trust includes the Portfolio Minister, Hon Lily D'Ambrosio MP, Minister for Energy,Environment and Climate Change, the governing Board of Trustees, the Chief Executive Officer, Victoria Marles, and the ChiefFinance Officer, Greg Bowers.

The compensation detailed below excludes the salaries and benefits the Portfolio Minister receives. The Minister's remunerationand allowances is set by the Parliamentary Salaries and Superannuation Act 1968 and is reported within the Department ofParliamentary Services' Financial Report.


Note 28 Glossary of terms

Amortisation

Amortisation is the expense which results from the consumption, extraction or use over time of a non-produced physical or intangibleasset. This expense is classified as an other economic flow.

Commitments

Commitments include those operating, capital and other outsourcing commitments arising from non cancellable contractual orstatutory sources.

Comprehensive result

The 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.

Depreciation

Depreciation is an expense that arises from the consumption through wear or time of a produced physical or intangible asset. Thisexpense is classified as a ‘transaction’ and so reduces the ‘net result from transaction’.

Effective interest method

The effective interest method is used to calculate the amortised cost of a financial asset or liability and of allocating interest incomeover the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through theexpected life of the financial instrument, or, where appropriate, a shorter period.

Employee benefits expenses

Employee benefits expenses include all costs related to employment including wages and salaries, fringe benefits tax, leaveentitlements, redundancy payments, defined benefits superannuation plans, and defined contribution superannuation plans.

Ex-gratia expenses

Ex-gratia expenses mean the voluntary payment of money or other non-monetary benefit (e.g. a write off) that is not made either toacquire goods, services or other benefits for the entity or to meet a legal liability, or to settle or resolve a possible legal liability orclaim against the entity.

Financial asset

A financial asset is any asset that is:(a) cash;(b) an equity instrument of another entity;(c) a contractual or statutory right:

(i) to receive cash or another financial asset from another entity; or(ii) 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:

(i) a non-derivative for which the entity is or may be obliged to receive a variable number of the entity’s own equityinstruments; or

(ii) a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset fora fixed number of the entity’s own equity instruments.

Financial instrument

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument ofanother entity. Financial assets or liabilities that are not contractual (such as statutory receivables or payables that arise as a resultof statutory requirements imposed by governments) are not financial instruments.


Note 28 Glossary of terms

Amortisation

Amortisation is the expense which results from the consumption, extraction or use over time of a non-produced physical or intangibleasset. This expense is classified as an other economic flow.

Commitments

Commitments include those operating, capital and other outsourcing commitments arising from non cancellable contractual orstatutory sources.

Comprehensive result

The 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.

Depreciation

Depreciation is an expense that arises from the consumption through wear or time of a produced physical or intangible asset. Thisexpense is classified as a ‘transaction’ and so reduces the ‘net result from transaction’.

Effective interest method

The effective interest method is used to calculate the amortised cost of a financial asset or liability and of allocating interest incomeover the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through theexpected life of the financial instrument, or, where appropriate, a shorter period.

Employee benefits expenses

Employee benefits expenses include all costs related to employment including wages and salaries, fringe benefits tax, leaveentitlements, redundancy payments, defined benefits superannuation plans, and defined contribution superannuation plans.

Ex-gratia expenses

Ex-gratia expenses mean the voluntary payment of money or other non-monetary benefit (e.g. a write off) that is not made either toacquire goods, services or other benefits for the entity or to meet a legal liability, or to settle or resolve a possible legal liability orclaim against the entity.

Financial asset

A financial asset is any asset that is:(a) cash;(b) an equity instrument of another entity;(c) a contractual or statutory right:

(i) to receive cash or another financial asset from another entity; or(ii) 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:

(i) a non-derivative for which the entity is or may be obliged to receive a variable number of the entity’s own equityinstruments; or

(ii) a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset fora fixed number of the entity’s own equity instruments.

Financial instrument

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument ofanother entity. Financial assets or liabilities that are not contractual (such as statutory receivables or payables that arise as a resultof statutory requirements imposed by governments) are not financial instruments.

Page 55

Note 28 Glossary of terms (continued)

Financial liability

A financial liability is any liability that is:(a) a contractual 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:

(i) a non-derivative for which the entity is or may be obliged to deliver a variable number of the entity’s own equityinstruments; or

(ii) a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset fora fixed number of the entity’s own equity instruments. For this purpose the entity’s own equity instruments do not includeinstruments that are themselves contracts for the future receipt or delivery of the entity’s own equity instruments.

Financial statements

Depending on the context of the sentence where the term ‘financial statements’ is used, it may include only the main financialstatements (i.e. comprehensive operating statement, balance sheet, cash flow statements, and statement of changes in equity); orit may also be used to replace the old term ‘financial report’ under the revised AASB 101 (September 2007), which means it mayinclude the main financial statements and the notes.

Grants and other transfers

Transactions in which one unit provides goods, services, assets (or extinguishes a liability) or labour to another unit without receivingapproximately 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 transferora claim to receive directly benefits of approximately equal value. For this reason, grants are referred to by the AASB as involuntarytransfers and are termed non-reciprocal transfers. Receipt and sacrifice of approximately equal value may occur, but only bycoincidence. For example, governments are not obliged to provide commensurate benefits, in the form of goods or services, toparticular taxpayers in return for their taxes.

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.

Interest expense

Costs incurred in connection with the borrowing of funds. Interest expenses include interest on bank overdrafts and short-term andlong-term borrowings, amortisation of discounts or premiums relating to borrowings, the interest component of finance leasesrepayments, and the increase in financial liabilities and non-employee provisions due to the unwinding of discounts to reflect thepassage of time.

Interest income

Interest income includes unwinding over time of discounts on financial assets and interest received on bank term deposits and otherinvestments.

Net result

Net result is a measure of financial performance of the operations for the period. It is the net result of items of income, gains andexpenses (including losses) recognised for the period, excluding those that are classified as other non-owner changes in equity.

Net result from transactions/net operating balance

Net result from transactions or net operating balance is a key fiscal aggregate and is income from transactions minus expenses fromtransactions. It is a summary measure of the ongoing sustainability of operations. It excludes gains and losses resulting from changesin price levels and other changes in asset volumes. It is the component of the change in net worth that is due to transactions andcan be attributed directly to policies.

Non-financial assets

Non-financial assets are all assets that are not ‘financial assets’.



Other economic flows

Other economic flows are changes in the volume or value of an asset or liability that do not result from transactions. It includes gainsand losses from disposals, revaluations and impairments of non-current physical and intangible assets; actuarial gains and lossesarising from defined benefit superannuation plans; fair value changes of financial instruments; and depletion of natural assets(non-produced) from their use or removal. In simple terms, other economic flows are changes arising from market re-measurements.

Payables

Includes short and long term trade debt and accounts payable, grants, taxes and interest payable.

Produced assets

Produced assets include buildings, plant and equipment, inventories, cultivated assets and certain intangible assets. Intangibleproduced assets may include computer software, motion picture films, and research and development costs (which does not includethe start up costs associated with capital projects).

Receivables

Includes trade credit and accounts receivable, accrued investment income, grants and interest receivable.

Sales of goods and services

Refers to income from the direct provision of goods and services and includes fees and charges for services rendered, sales ofgoods and services, fees from regulatory services and work done as an agent for private enterprises. It also includes rental incomeunder operating leases and on produced assets such as buildings and entertainment, but excludes rent income from the use ofnon-produced assets such as land. User charges includes sale of goods and services income.


Supplies and services generally represent cost of goods sold and the day-to-day running costs, including maintenance costs, incurredin the normal operations of the Trust.

Transactions

Transactions are those economic flows that are considered to arise as a result of policy decisions, usually an interaction betweentwo entities by mutual agreement. They also include flows within an entity such as depreciation where the owner is simultaneouslyacting as the owner of the depreciating asset and as the consumer of the service provided by the asset. 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.


Trust for Nature5/379 Collins StreetMelbourne, Victoria 3000 AustraliaPhone: +61 3 8631 5888Fax: +61 3 9614 6999Freecall: 1800 99 99 33 (Australia only)Email: [email protected] 60 292 993 543

This report is printed on paper manufactured using 100% post-consumer waste recycled paper. An electronic copy of this document is available online at www.trustfornature.org.au

fsc logo to be placed here

http://www.trustfornature.org.au

Trust for Nature Annual Report 2016-17

www.trustfornature.org.au

trust for nature annual report 2016-17 · 1 speech to communicate conference: connecting with...

Documents