This annual report will be presented to Parliament to meet the statutory reporting requirements of the Urban Renewal Act 1995.
This report is verified to be accurate for the purposes of annual reporting to the Parliament of South Australia.
Submitted on behalf of the Urban Renewal Authority (trading as Renewal SA) by:
Chris Menz
Chief Executive of Renewal SA
The Government of South Australia is committed to improving the lives of South Australians through economic development and growth. Through its Growth State plan, the state continues to identify initiatives and projects that support and drive the future economic growth of South Australia. Renewal SA supports this by identifying, prioritising and leading projects and initiatives that will stimulate the economy and create jobs for South Australians.
Renewal SA’s primary purpose is to initiate, undertake, promote and support strategic urban development activity as outlined in the 30 Year Plan for Greater Adelaide which defines target growth infill areas and design outcomes.
Our focus is on property development that builds new industries, infrastructure and communities, drives economic activity, maximises private sector investment and participation, and enhances the liveability of our state.
Our activities are driven by several state strategies including The 20-Year State Infrastructure Strategy which was released in late-2019 and sets the long-term direction and priorities for infrastructure development in South Australia; and the Our Housing Future 2020-2030 strategy which was launched in 2020 and is delivering a better housing future by coordinating activity and opportunities across the housing sector. We are also driven by the 30 Year Plan for Greater Adelaide.
As a committed group of property professionals, the team at Renewal SA firmly believe we can improve the lives of South Australians, now and into the future, through transformational projects and property. Each day we are inspired to deliver on this purpose.
As the state government’s leading urban development agency, Renewal SA has continued to deliver progress and contribute to or lead flagship developments: Lot Fourteen, Tonsley Innovation District, Bowden, Lightsview, Port Adelaide and Playford Alive.
The 2019-2020 financial year has delivered significant challenges for the South Australian economy, the property industry, businesses and our people. Following major bushfires though December and January and the impacts of the COVID-19 pandemic, Renewal SA’s renewed focus is on securing a pipeline of major projects and property initiatives will greatly aid our state’s economic recovery and future growth.
I acknowledge and thank our Acting Chief Executives during 2019–20 financial year, Mark Devine who led our organisation until December 2019 and Damian De Luca who acted in the role until February 2020 before my arrival.
In 2020, Renewal SA welcomed a new Executive team. Joining me as incoming Chief Executive and Damian De Luca, General Manager, Corporate Services are:
Each of these people come with significant experience and a passion for property and people, and a commitment to realising South Australia’s potential for growth.
Finally, I am delighted to confirm that this year, Renewal SA has finalised its 3-year strategy for growth through 2020-2023. This strategy acknowledges the need for a thriving property sector here in South Australia and highlights the need for Renewal SA to create opportunities, provide a confident pipeline of projects and initiatives, focus on growing our people, and build lasting, mutually beneficial, partnerships between government and the private sector.
Together with the Treasurer, our Board of Management and the Executive Management Team, I am proud of our achievements for the 2019–2020 financial year and am looking forward to continuing to drive the social and economic growth of South Australia through property and projects.
Chris Menz
Chief Executive
Our strategic focus (2019–20 financial year)
The Urban Renewal Authority was established under the Urban Renewal Act 1995 with the primary purpose to initiate, undertake, promote and support strategic urban development activity to help deliver the key strategic priorities of the South Australian Government, particularly the new urban development directions as outlined in the 30 Year Plan for Greater Adelaide.
Renewal SA is responsible for leading and coordinating urban renewal development activity to ensure that the state’s future employment and housing needs are met through well planned, affordable and vibrant urban development located near transport, employment, education and other services.
Our purpose is to improve the lives of South Australians now and into the future.
Delivering an inspiring urban future.
Renewal SA is guided by the South Australian public sector values of service, professionalism, trust and integrity, respect, collaboration and engagement, honesty and integrity, courage and tenacity, and sustainability.
These values reflect our commitment to the ever-changing needs of South Australians, and the role of government in helping to foster the state’s prosperity and wellbeing.
Renewal SA also has a set of five values that lead our day-to-day behaviours and decision-making. They are:
The key functions of Renewal SA as outlined in the Urban Renewal Act 1995 are to:
During 2019-20 financial year, there were no changes to the agency’s structure and objectives as a result of internal reviews or machinery of government changes.
During 2019-20 financial year, the Urban Renewal Authority, trading as Renewal SA, was within the portfolio responsibilities of the Minister for Transport, Infrastructure and Local Government, Hon Stephan Knoll MP.
The Chief Executive currently reports to the Treasurer and the Urban Renewal Board of Management to oversee the day-to-day operations of our organisation, together with the Executive team.
As at 30 June 2020, Renewal SA’s Executive Team comprised:
Mr Todd Perry joined Renewal SA as General Manager Project Delivery and Property in August 2020.
'Growth State: Our Plan for Prosperity' is the government’s economic plan for the state.
Renewal SA is aligned to, and supports, the Government of South Australia’s Growth State agenda which aims to stimulate the economy and population of the state.
The state government is delivering long-term benefits for the state by investing in projects that drive economic activity and growth, boost productivity and enhance liveability and land values.
Renewal SA plays a leading role by providing strategic opportunities for industrial and commercial development on designated employment lands to support social and economic growth and job creation.
Through our pipeline of development projects, partnerships with the private sector, and by supporting innovation in key industry sectors such as defence, space, energy and hi-tech, Renewal SA is attracting local, national and international investment and contributing to the growth of South Australia.
Renewal SA is guided by the government’s 30-Year Plan for Greater Adelaide and has a role to play in delivering:
Renewal SA facilitates the supply of strategically located commercial and industrial land to support South Australia’s economic and employment growth. By working in multiple markets and de-risking projects, Renewal SA generates jobs and investment by enabling businesses to establish, grow and succeed. During the 2019-20 financial year Renewal SA sold 19.7 hectares of industrial land and the future development of that land is expected to deliver at least 850 jobs.
Renewal SA’s construction capital expenditure of $106 million is estimated to have created at least 600 jobs across the 2019-20 financial year.
Renewal SA’s Works Program builds capability and capacity across the private sector, ensuring that there are sufficient skills in the market by generating training and employment opportunities through our contracts to support jobs and traineeships/apprenticeships. The Works Program works with industry to develop innovative delivery models, identify opportunities and deliver initiatives within our projects that provide social inclusion, indigenous business and participation outcomes. There were 77 participants engaged in training programs throughout the 2019-20 financial year and 44 of these participants gained employment.
Renewal SA’s infill developments within existing suburbs create more affordable housing choices and communities that are more pedestrian and bike friendly, that benefit from having employment, shops and services within easy reach. Along with the lower infrastructure costs of developing in existing metropolitan areas, these factors will ultimately make our city more affordable to live in.
Renewal SA is committed to accelerating development that increases the supply of affordable housing for sale to a mix of low and moderate-income homebuyers. During 2019-20 financial year, Renewal SA delivered more than 200 affordable housing opportunities to the market.
The development and release of industrial land in key locations by Renewal SA provides opportunities for South Australian businesses to consolidate and modernise their operations, and to optimise transport and logistics functions. This is expected to increase competitiveness and lead to lower costs for business and consumers.
Renewal SA drives great design outcomes by facilitating inclusive and connected communities that demonstrate good design, create quality public spaces and services, and enhance the South Australian lifestyle.
Renewal SA engages with the community, creates planning certainty and addresses any significant infrastructure and required site remediation, to de-risk and allow integrated and master-planned developments to proceed.
Renewal SA also adopts a master-planned approach to its commercial and industrial projects to ensure that employment precincts operate as viable and attractive workplaces, with an appropriate level of support services.
Renewal SA’s projects span the Greater Adelaide region, and include residential, commercial, industrial and mixed-use developments. Together with the critical contribution of the development industry, community and government partners, Renewal SA is delivering these projects for all South Australians.
Renewal SA is working closely with the Department of Premier and Cabinet and the State Government as the commercial advisor and master developer of Lot Fourteen, to create an innovation precinct that leverages South Australia’s abilities in space, defence, hi-tech and creative industries. Lot Fourteen is accelerating global interaction and investment, creating high-value jobs and driving economic growth and future prosperity for South Australia. Led by Premier Steven Marshall through the Department of Premier and Cabinet State Project Lead, Renewal SA has delivered substantial development progress at Lot Fourteen.
During the 2019-20 financial year, Renewal SA completed an $80 million capital works program. This included the North Terrace public realm upgrade works; significant adaptive re-use of 16,000m2 of lettable space across six heritage buildings, and major demolition and infrastructure projects as key enabling works to allow new development to commence.
Lot Fourteen welcomed new tenants to the site including the 140 work-space Stone & Chalk start-up hub, the Australian Space Agency and SmartSat Cooperative Research Centre, University of Adelaide Australian Institute for Machine Learning, MIT bigdata Living Lab and the Australian Cyber Collaboration Centre.
Lot Fourteen became the first registered WELL Community pilot project in the southern hemisphere focused on the health and wellbeing of tenants and visitors and has achieved a 6-Star Green Star rating for Communities Design and Heritage Buildings.
Over 1,700 people are now employed at the Tonsley Innovation District, which is 70% more than when Mitsubishi announced their closure in 2008. There are now over 35 businesses established on the site, 290 co-working members, and 8,000 students studying at Tonsley each year.
During the 2019-20 financial year, construction commenced on Autism SA’s head office as well as on the Australian Gas Infrastructure Group’s Hydrogen Park SA (HyP SA), Australia’s first hydrogen production and distribution facility. Mobile x-ray imaging company Micro-X, Flinders University and Rockwell Automation have now established operations in the Main Assembly Building (MAB).
One of Australia’s largest rooftop solar arrays, the Tonsley District Energy and Recycled Water Scheme, reached a major milestone with the completion of the solar PV installation on the roof of the MAB. Over 7,000 solar panels are now generating around 2.4 MW on site to deliver clean, competitively priced energy to Tonsley’s tenants and residents via smart renewable technology.
Residents have begun moving into terrace homes and apartments at Peet’s residential development, Tonsley Village. A total of 34 homes have been handed over while 48 are under construction in addition to two apartment buildings. These are helping to realise the vision for Tonsley Innovation District as a vibrant, mixed-use precinct.
During the 2019-20 financial year, almost 170 allotments were produced, which has provided stock to enable purchasers to take advantage of the Federal Government’s HomeBuilder initiative announced in June 2020.
Renewal SA continued to recognise and reward community groups and local people through the Playford Alive Initiatives Fund and Local Heroes Awards.
To date, the Playford Alive project has produced and offered for sale more than 1,700 residential allotments, continuing to provide the opportunity for residents to build their new homes and enjoy the lifestyle offered as part of the Playford community.
In October 2019, the doors opened to Bowden’s first display centre at 24 Gibson Street, showcasing two boutique housing options; a fully fitted-out 354 Bowden apartment as well as a Guild Terrace home, allowing would-be purchasers an initial glimpse at what life at Bowden is like.
During the 2019-20 financial year, construction commenced on Stage 1 of Guild Terraces, 15 architecturally designed Torrens-Titled townhouses, and on 354 Bowden, comprising 5 buildings and 228 apartments. The first 354 Bowden apartment building, On The Lane, containing 26 apartments was completed.
An Indigenous food garden for Bowden’s Guild Terrace reserve commenced planning the 2019-20 financial year also, in recognition of the region’s rich Kaurna heritage and ongoing cultural importance. The garden is being delivered through a collaboration between Renewal SA and Kaurna elders of the Kaurna Nation Cultural Heritage Association.
Plant 3 Bowden Pty Ltd has also completed the design for the redevelopment of Plant 3, a former manufacturing plant, and has now engaged a builder to commence construction with completion due in the first quarter of 2021.
The Woodville West Urban Renewal Project, marketed as ‘The Square at Woodville West’, is delivering a diverse mix of housing options including villas, townhouses, apartments and lofts. Renewal of the area includes construction of up to 425 new dwellings and three retail premises, reconfiguration of roads and creation of new public spaces.
The project is being delivered over 6 stages. To date, civil works have been completed across all stages, and sales within Stages 1, 2 and 6 are complete, and Stage 5 is almost sold. The project has constructed 159 new dwellings, 3 refurbished dwellings and a sold further 77 vacant lots to accommodate 140 new dwellings.
The focus for the 2019-20 financial year has been the successful management of multiple developers delivering the construction of residential and commercial developments around the Port Adelaide Inner Harbour. These ventures will result in 1,150 homes, 2,000 people living and recreating, and 1,000 new workers in the port in addition to the hundreds of construction jobs.
Fletcher’s Slip, an 8-year project by Cedar Woods, which will deliver 500 dwellings, commenced in earnest with demolition and ground remediation nearing completion across half of their total development area. Dock One, an 8-year 650 dwelling project by Starfish Developments, commenced construction following the settlement of Stage 1 in July 2019, with the first residents moving in during August 2020.
A preferred proponent has been secured for the development of the former Incitec Pivot Site at Port Approach North into a mixed use commercial and light industrial precinct following an Expression of Interest process.
In November 2019, the City of Adelaide Clipper Ship and barge were successfully relocated from Dock One to Dock Two, the first step in establishing a maritime heritage tourism precinct at Dock Two and enabling the development of Dock One by Starfish Developments.
Other development commencements of note during the 2019-20 financial year period include the commencement of the Colac Hotel redevelopment on St Vincent Street by Dominion Homes, The Globe Hotel redevelopment on St Vincent Street by the Ginos Group, Hexagon townhouse development on Divett Street, and the completion of Stage 1 of the Port Adelaide Plaza redevelopment by the Precision Group. The 2019-20 financial year also saw the commencement of fit-out works at the former TAFE SA Port Adelaide Campus building on Mundy Street for 250 employees of the Naval Group. Development approvals of note for the same period include the 180-room Rydges on McLaren Parade and the reuse of the 7-storey former Department of Marine and Harbours Building on St Vincent Street into a hotel by Starfish Developments, which are all strong indicators of positive growth and renewal of the Port.
The Festival Plaza Redevelopment consists of three separate major capital projects being undertaken in and around the site of the former Hajek Plaza:
Renewal SA continues to work closely in partnership with the Department for Infrastructure and Transport, Walker Corporation, SkyCity Casino and the Adelaide Festival Centre to deliver a unique, world-class hub for the arts, culture, tourism, entertainment and commercial sectors.
During the 2019-20 financial year, revised designs for the Festival Plaza Public Realm received all required endorsements, statutory approvals and funding, enabling construction of the first stages to commence in June 2020. As part of the Festival Plaza Public Realm works, Renewal SA commissioned a significant public artwork to be installed in the ceiling of the new Station Entry which will connect the Adelaide Railway Station to the Riverbank Footbridge.
Substantial progress was made by SkyCity Casino on construction of its new building and redevelopment of existing premises. Separately, Walker Corporation completed demolition, excavation and piling works enabling construction works to commence on the delivery of a 5-level car park with 1560 spaces, which is the first element of its integrated development.
Work commenced in April 2020 on the comprehensive restoration of the western façade of the Adelaide Railway Station building, including the large arched windows. These works will protect the structural integrity of this State heritage-listed building.
The transformation of the retail offering within the Adelaide Railway Station made significant progress with the opening of SkyCity’s new $6 million bar and dining venue, The Guardsman, and the opening of new small retailers within the public concourse and access ramp.
Agreements have been established with the Department of Infrastructure and Transport and SkyCity Casino to effect the creation of 700 square metres of new retail tenancy spaces within the station’s public concourse.
This last year also saw design, planning and procurement activity for a program of works in and around the Adelaide Railway Station, which will uplift the heritage features of the building and complement the new and improved retail offering. This program of works, to be delivered between October 2020 and June 2022, will include upgrades to the North Terrace shop-front and public realm, restoration works within the heritage ramp and public concourse, and the installation of internal and external architectural lighting.
Working in partnership with the City of Adelaide and the State Planning Commission, Renewal SA is leading the delivery of a new Precinct Plan for the Adelaide Riverbank on behalf of the Capital City Committee. The Precinct Plan will:
Renewal SA continues to support the Riverbank Entertainment Precinct Advisory Committee in the coordination of development, activation and marketing of the precinct.
Renewal SA provides opportunities for industrial and commercial development on designated employment lands to support South Australia’s economic and employment growth.
Significant landholdings at Osborne and Edinburgh Parks support the growth of South Australia’s defence sector and we continue to work closely with the Commonwealth Department of Defence to ensure the requirements of the Navy, Army and Air Force can be accommodated in these locations. During the 2019-20 financial year, we completed the Northern LeFevre Peninsula Master Plan, which provides a long-term vision for a naval industry hub at Osborne with facilities and services required to support expansions of defence and port-related industries, and the resulting workforce.
Over the last three years, Renewal SA has transferred 29.61 hectares of land to facilitate the expanded Osborne Naval Shipyard and sold or leased a further 7.525 hectares to defence-related businesses to support the shipyard construction and operations. During the 2019-20 financial year, the Osborne Naval Shipyard (including land sold/leased by Renewal SA) has seen significant construction activity, and it is expected that ongoing development of this land will lead to over 1,100 jobs in the precinct.
Grand Trunkway Estate offers potential purchasers master-planned industrial allotments at the western edge of the Northern Economic Corridor. Following solid interest during the 2019-20 financial year, which included the sale of an additional allotment (generating revenue of $1.15 million) and construction commencing on a previously sold allotment within the estate, Renewal SA has completed further work to release an additional 3 allotments to the market.
Strategically-located commercial and industrial land continues to sell at Technology Park. Highlights this year include the sale of 3.8 hectares to Commercial & General to accommodate a new Raytheon development. Pelligra Group also purchased 6.6 hectares at Edinburgh Parks to accommodate the Auscold Logistics development.
The Environmental Services Group are a team of highly skilled experts who provide guidance and direction on all environmental matters associated with acquisition, development, management and divestment of land to all divisions of Renewal SA and other government agencies.
This year, the team has successfully negotiated the remediation strategy and associated costs for the SAHMRI2 development on behalf of Department for Treasury and Finance, which saved the government a significant amount of money in remediation costs.
The team actively works on the Tonsley, Port Adelaide and Bowden projects and leads the way in ensuring that these contaminated sites are assessed and remediated allowing development to occur in a sustainable and pragmatic way.
Renewal SA’s soil recycling facility at Port Adelaide has experienced an increase in demand for the disposal of soil, due to securing the contaminated soil from the SAHMRI2 project and is undergoing an expansion to manage a larger volume of soil. In the 2019-20 financial year, work began on the construction of two additional structures for the storage of low-level contaminated soil.
The Renewal SA Works Program delivers economic outcomes through employment and work experience opportunities in Renewal SA-managed contracts, engagement, training and employment programs in partnership with registered training organisations, and by building capacity in organisations and within communities.
Through the inclusion of economic development clauses (EDCs) in Renewal SA contracts, Renewal SA’s contractors provided 40 work experience placements and 11 paid employment positions in the 2019-20 financial year.
In addition to delivering opportunities through live training site and pre-employment programs, there has been greater capacity to engage new groups in learning, such as through our Children’s University sponsorship, Tonsley school holiday workshops and STEM Works @Tonsley tours.
Overall, in the 2019-20 financial year, the Works Program provided 387 people with pathways to employment through education, training, engagement and work experience, across all Renewal SA projects: Playford Alive, Bowden, the Square at Woodville West, Our Port, Lot Fourteen and Tonsley Innovation District.
The Planning and Design team plays an important role in contributing to the pipeline of development opportunities that enable growth and attract additional investment for the state. During the 2019-20 financial year, the Oakden/Gilles Plains Structure Plan, Stakeholder Consultation Report and Draft Development Plan Amendment were completed; at Aldinga, the Draft Structure Plan was completed and land was sold to facilitate the delivery of the R-12 School; and the Draft Development Plan Amendment for the New Castalloy site was prepared.
The team provides support and advice across all Renewal SA projects. Their expertise is recognised and valued across government and staff were consulted on the development of various local and state government development strategies and projects. Support and advocacy were provided throughout the 2019-20 financial year through membership on steering and reference groups on key projects across government.
Preparation of the Development Plan Amendment and coordination of concepts for staged public realm delivery at Lot Fourteen, and initial scoping studies for the Entrepreneur and Innovation Centre and International Centre for Food, Hospitality and Tourism Studies were delivered. Preparation of stage plans, product development and project reviews were also undertaken at Bowden and Woodville West.
Renewal SA readily recognises and accepts the opportunity and responsibility to be part of Reconciliation process. As the South Australian Government’s urban authority, Renewal SA has the capacity to take meaningful steps across our range of projects, programs and other activities to enhance how we respectfully acknowledge and engage with our key Aboriginal and Torres Strait Islander partners and stakeholders. In the 2019-20 financial year Renewal SA established a Reconciliation Action Plan Steering Committee and launched the agency’s first Reconciliation Action Plan.
The following sections provide a summary of Renewal SA’s operational performance in regards to employment opportunity programs; performance management and
development systems; work health, safety and return-to-work programs.
During 2019-20 financial year, Renewal SA undertook a review of the organisational structure to ensure that we have the right functions and capability to lead, support and drive investment and growth through property and projects. A proposed restructure was announced in June 2020 and was confirmed in July 2020.
Renewal SA is now structured around three divisions – Corporate Services, Major Projects and Pipeline, and Projects Delivery and Projects. These divisions are supported by Office for the Chief Executive; People and Culture; and Strategy, Marketing and Communications.
In August 2019, the master plan and protocols for the development of Lot Fourteen’s public realm won an Award of Excellence in the annual Australian Institute of Landscape Architects Awards for South Australia.
In November 2019, Tonsley Innovation District won the top prize for the Commercial Landscape ($500,000-$1,000,000) category in the Master Landscapers of South Australia Awards for the Lounge Forest, its latest landscaped outdoor area built by LCS Landscapes.
The following sections provide a summary of Renewal SA’s operational performance in regard to performance management and development systems, work health and safety and return to work programs.
Renewal SA’s Partnering for Performance Plan (PPP) process provides clarity regarding expectations of employees and managers in driving organisational performance.
Completions of a formal documented PPP in the financial year ending 30 June 2020 are outlined in the following chart.
The PPP process is being reviewed and refreshed during the financial year ending 30 June 2021 and is currently being implemented to target a 100% completion rate.
Program name | Performance |
---|---|
Work Health and Safety Program | Renewal SA follows a risk management approach to its safety program, with extensive consultation through employee and management representation on our WHS committee. |
Wellness Program | Renewal SA offers a holistic wellness program, focusing on health, mental health and the prevention of violence.
In relation to health and mental health, we adopt a preventative approach, with offerings such as skin screenings, influenza vaccinations, and the promotion of physical activities through programs like the Corporate Cup. To promote workplace mental health, we maintain a fully trained complement of Mental Health First Aiders. Teamgage, an employee engagement tool, was also introduced this financial year. Feedback on workplace safety, health and wellbeing is sought through this tool. As a White Ribbon accredited workplace, Renewal SA stands firm against domestic violence, gender-based violence and inequality. As a result of the COVID-19 pandemic, we have introduced measures across our agency to safeguard our staff. We have introduced a Preparedness Coordinating Committee to oversee our COVID-19 response. |
Return to Work Program | We provide care and support for both compensable injuries and non-compensable injuries. We proactively liaise with our Return to Work Service Provider and consistently maintain a 100% performance rating for ensuring all Return to Work claims are assessed within two business days of the date the employer was notified of the injury and that a determination on a Return to Work claim is made within ten business days. |
Workplace injury claims | Current year 2019-20 | Past year 2018-19 | % change (+/-) |
---|---|---|---|
Total new workplace injury claims | 1 | 2 | -50% |
Fatalities | 0 | 0 | 0% |
Seriously injured workers* | 0 | 0 | 0% |
Significant injuries (where lost time exceeds a working week, expressed as frequency rate per 1000 FTE) | 0 | 3.33 | -100% |
*number of claimants assessed during the reporting period as having a whole person impairment of 30% or more under the Return to Work Act 2014 (Part 2 Division 5)
Work health and safety regulations | Current year 2019-20 | Past year 2018-19 | % change (+/-) |
---|---|---|---|
Number of notifiable incidents (Work Health and Safety Act 2012, Part 3) | 0 | 0 | 0% |
Number of provisional improvement, improvement and prohibition notices (Work Health and Safety Act 2012, Sections 90, 191 and 195) | 0 | 0 | 0% |
Return to work costs** | Current year 2019-20 | Past year 2018-19 | % change (+/-) |
---|---|---|---|
Total gross workers compensation expenditure ($) | $841 | $41,408 | -95% |
Income support payments (gross) ($) | 0 | $20,104 | -100% |
**Before third party recovery.
Data for previous years is available at: https://data.sa.gov.au/data/dataset/renewal-sa-work-health-and-safety-and-return-to-work-performance
Executive classification | Number of executives |
---|---|
Chief Executive | 1 |
Executives* | 18 |
*In accordance with the workforce information data definition Office of the Commissioner for Public Sector Employment, an Executive is an employee who receives:
Four of the Executives reported above are in the Executive team supporting the Chief Executive. The remainder of the Executives reported are high level senior professionals that are responsible for the delivery of key outcomes e.g. project directors, or leaders of functional business units.
The Office of the Commissioner for Public Sector Employment has a workforce information page that provides further information on the breakdown of executive gender, salary and tenure by agency.
The reported Comprehensive Result is a loss of $112.3 million, which is an improvement of $94 million on the previous financial year. The comprehensive result has been materially impacted by valuation adjustments and one-off transactions with government which together total $112.2 million. The ‘ordinary’ result excluding valuation adjustments, and extraordinary transactions is a small loss of $83,000, which is better than budget for ordinary activities by approximately $2 million.
The reported Comprehensive Result was impacted by the following one-off items:
The Statement of Financial Position shows a Net Asset and Total Equity of negative $50.7 million as at 30 June 2020. This is an improvement of $13.2 million on the previous financial year. The negative net asset position results primarily from the Government’s decision, in the previous financial year, to provide contributions to the capital cost of Renewal SA’s development projects as equity rather than grant funding. A going concern issue does not exist given that Renewal SA’s forecast cash flows are positive moving forward, with gearing expected to reduce each year over the forward estimates.
It should be noted that Renewal SA’s inventory assets are recorded at the lower of cost and net realisable value, in accordance with the Accounting Standard AASB 102 – Inventories. The net realisable value of Renewal SA’s inventory assets are estimated to be significantly higher than the reported book value.
A summary of the financial result is presented below. Full audited financial statements for the year ended 30 June 2020 are attached to this report.
The following is a summary of external consultants that have been engaged by the agency, the nature of work undertaken, and the actual payments made for the work undertaken during the financial year.
Consultancies | Purpose | Actual Payment ($) |
---|---|---|
30 consultants engaged | Various | 109,124 |
Consultancies | Purpose | Actual Payment ($) |
---|---|---|
AECOM Australia Pty Ltd | Environmental due diligence | 33,719 |
Baukultur Pty Ltd | Lot Fourteen – Entrepreneur & Innovation Centre Reference Scheme | 137,000 |
D Squared Consulting Pty Ltd | Women’s Health Centre Building Green Star Rating | 13,040 |
Deloitte Access Economics | Lot Fourteen – Economic Development Strategy | 94,094 |
Doug and Wolf | Lot Fourteen – Innovation Centre Architectural Visualisation | 11,400 |
Flightpath Architects Pty Ltd | Adelaide Railway Station – Heritage Advice and Heritage Impact Statements | 28,224 |
Fyfe Pty Ltd | Aldinga Structure Plan | 63,083 |
Guildhouse Incorporated | Lot Fourteen – Public Art and Culture Strategy | 11,015 |
Hannan Duck & Partners | Renewal SA – Strategic Plan 2019-2022 | 19,000 |
Holmes Dyer | New Castalloy – Development Plan | 37,000 |
Integrated Heritage Services | Aldinga Cultural Heritage Survey | 18,661 |
John Wardle Architects | Lot Fourteen – Innovation Centre – Scoping Study, Brief and Preliminary Concept | 462,500 |
MacroPlan Holdings Pty Ltd | Lot Fourteen – Retail Market Assessment | 10,500 |
Mott MacDonald | Project Management Support – Women’s Health Centre Refurbishment | 33,156 |
Point of View Design Pty Ltd | Adelaide Railway Station – Lighting Design | 43,078 |
Price Waterhouse Coopers | Accounting Advice – Lease Accounting | 18,360 |
Right Angle Studio | Lot Fourteen – Place Vision and Strategy | 55,728 |
Right Angle Studio | Lot Fourteen – Retail Vision and Strategy | 41,199 |
Senversa Pty Ltd | Soil Assessment | 44,222 |
The Buchan Group Melbourne Pty Ltd | North Terrace Frontage Enhancement Works | 135,322 |
TOTAL |
1,310,301 |
See also the Consolidated Financial Report of the Department of Treasury and Finance for total value of consultancy contracts across the South Australian Public Sector.
The details of South Australian Government-awarded contracts for goods, services, and works are displayed on the SA Tenders and Contracts website. View the agency list of contracts.
The website also provides details of across government contracts.
Renewal SA has in place a robust risk management framework. The objective of this framework is to ensure an appropriate risk culture prevails with a high level of risk awareness throughout the organisation. The framework includes formalised risk management processes to manage risk in line with contemporary risk management standards whereby risks are identified, assessed and assigned to risk owners with risk treatment and mitigating strategies required.
There is also in place appropriate risk reporting to the Executive, the Finance, Risk and Audit Committee and the Board of Management.
The Urban Renewal Authority Board of Management has an established Finance, Risk and Audit Committee whose principal functions are to:
The Finance, Risk and Audit Committee comprises members of the Board of Management, supplemented by an independent member.
Renewal SA’s Internal Audit function is provided by the Department of Human Services Internal Audit team, under a Service Level Agreement. The Internal Audit work plan is reviewed and approved by the Finance Risk and Committee with all findings reported to the Committee.
Nil.
NB: Fraud reported includes actual and reasonably suspected incidents of fraud.
Renewal SA’s fraud policies include a range of internal controls to ensure employees, volunteers, agents, contractors, sub-contractors and suppliers of goods and services are aware they must refrain from engaging in any activity that is, or could be perceived as, fraudulent or unethical.
Renewal SA has developed a fraud and corruption control strategy, which includes operational arrangements to improve awareness of obligations and to minimise the chance of fraud such as:
Data for previous years is available at: https://data.sa.gov.au/data/dataset/f3ab015c-866c-450b-a74c-e52b2e8a7222
No categories of complaints were received by, or made against, Renewal SA for the 2019-20 financial year.
The total number of enquiries between 1 July 2019 – 30 June 2020 was 230. As a result of these enquiries, no specific service improvements were required to be implemented by Renewal SA as part of the result or action as a result of the enquiry.
For further up-to-date information regarding Renewal SA and its activities, please refer to renewalsa.sa.gov.au
For the year ended 30 June 2020
For the year ended 30 June 2020
Note No. |
2020 $’000 |
2019 $’000 |
|
---|---|---|---|
Income |
|||
Revenue from sales | 9 | 62,567 | 66,755 |
Less: cost of sales | 9 | 36,489 | 41,195 |
Gross profit from sales | 26,078 | 25,560 | |
Share of net profit in joint ventures | 10 | 844 | 2,166 |
Revenues from SA Government | 11 | 6,267 | 8,239 |
Interest revenues | 12 | 711 | 975 |
Property income | 13 | 45,493 | 81,141 |
Other revenues | 14 | 1,755 | 2,216 |
Net gain from disposal of non-current assets | 15 | – | 400 |
Total other income | 55,070 | 95,137 | |
Total income | 81,148 | 120,697 | |
Expenses |
|||
Employee benefits expenses | 7 | 14,573 | 15,780 |
Operating expenditure | 16 | 49,559 | 49,939 |
Bad and doubtful debts expense | 20 | 1,311 | 600 |
Borrowing costs | 17 | 89,356 | 40,683 |
Depreciation and amortisation | 23 | 1,903 | 518 |
Net loss from changes in value of non-current assets/provision for development expenditure | 24 | 36,761 | 219,500 |
Total expenses | 193,463 | 327,020 | |
Profit/Loss before income tax equivalent | (112,315) | (206,323) | |
Total comprehensive result | (112,315) | (206,323) |
The Profit/Loss After Income Tax Equivalent and Total Comprehensive Result are attributable to the SA Government as owner.
The above statement should be read in conjunction with the accompanying notes.
As at 30 June 2020
Note no. |
2020 $’000 |
2019 $’000 |
|
---|---|---|---|
Current assets |
|||
Cash and cash equivalents | 19 | 11,236 | 21,083 |
Receivables | 20 | 5,080 | 5,698 |
Inventories | 21 | 74,702 | 68,402 |
Investment in joint ventures | 10 | 3,246 | 3,345 |
Total current assets | 94,264 | 98,528 | |
Non-current assets |
|||
Receivables | 20 | 13,142 | 8,615 |
Inventories | 21 | 162,002 | 178,920 |
Investment properties | 22 | 77,590 | 706,530 |
Property, plant and equipment | 23 | 15,780 | 1,832 |
Investment in joint ventures | 10 | 659 | 716 |
Total non-current assets | 269,173 | 896,613 | |
Total assets | 363,437 | 995,141 | |
Current liabilities |
|||
Payables | 26 | 11,667 | 21,702 |
Unearned income | 28 | 2,817 | 3,554 |
Financial liabilities | 27 | 256,113 | 270,552 |
Provisions | 29 | 27,137 | 101,300 |
Employee benefits | 8 | 2,880 | 2,247 |
Other liabilities | 30 | 152 | 152 |
Total current liabilities |
300,766 | 399,507 | |
Non-current liabilities |
|||
Payables | 26 | 9,119 | 7,455 |
Unearned income | 28 | 14,865 | 15,313 |
Financial liabilities | 27 | 86,357 | 633,150 |
Provisions | 29 | 48 | 37 |
Employee benefits | 8 | 2,963 | 3,627 |
Total non-current liabilities | 113,352 | 659,582 | |
Total liabilities |
414,118 | 1,059,089 | |
Net assets | (50,681) | (63,948) | |
Equity |
|||
Contributed capital | 509,188 | 381,857 | |
Retained earnings | (559,869) | (445,805) | |
Total equity |
(50,681) | (63,948) |
The total equity is attributable to the SA Government as owner.
The above statement should be read in conjunction with the accompanying notes.
For the year ended 30 June 2020
Note no. |
Contributed capital $’000 |
Retained earnings $’000 |
Total $’000 |
|
---|---|---|---|---|
Balance at 30 June 2018 | 356,857 | (230,551) | 126,306 | |
Total comprehensive result for 2018-19 | – | (206,323) | (206,323) | |
Adjustment on adoption of new accounting standards | – | (1,798) | (1,798) | |
Transactions with the SA Government in their capacity as owners: | ||||
|
25,000 | – | 25,000 | |
|
– | 3,812 | 3,812 | |
|
18 | – | (10,945) | (10,945) |
Balance as at 30 June 2019 |
381,857 | (445,805) | (63,948) | |
Total comprehensive result for 2019-20 | – | (112,315) | (112,315) | |
Transactions with the SA Government in their capacity as owners: | ||||
|
127,331 | – | 127,331 | |
|
18 | – | (1,749) | (1,749) |
Balance as at 30 June 2020 |
509,188 | (559,869) | (50,681) |
All changes in equity are attributable to the SA Government as owner.
The above statement should be read in conjunction with the accompanying notes.
For the year ended 30 June 2020
Note no. |
2020 $’000 |
2019 $’000 |
|
---|---|---|---|
Cash flows from operating activities |
|||
Cash inflows | |||
Receipts from sales | 63,876 | 67,452 | |
Receipts from tenants (rent and recoveries) | 44,926 | 80,088 | |
Receipts from SA Government | 6,267 | 26,301 | |
Interest received | 270 | 495 | |
Recoveries and sundry receipts | 806 | 4,672 | |
Cash generated from operations |
116,145 | 179,008 | |
Cash outflows | |||
Payments for land purchase and development | (107,157) | (104,168) | |
Payments in the course of operations for supplies and services | (78,148) | (71,218) | |
Interest paid | (92,522) | (41,044) | |
Income tax equivalent paid | – | (4,519) | |
GST paid to the ATO | (58,780) | (4,787) | |
Cash used in operations |
(336,607) | (225,736) | |
Net cash used in operating activities | 31 | (220,462) | (46,728) |
Cash flows from investing activities |
|||
Cash inflows | |||
Distributions of profit by joint ventures | 1,000 | 1,000 | |
Proceeds from the sale of investment properties | 661,243 | 1,800 | |
Cash generated from investing activities | 661,243 | 2,800 | |
Cash outflows | |||
Purchase of plant and equipment | (175) | (476) | |
Cash used in investing activities | (175) | (476) | |
Net cash provided by investing activities | 662,068 | 2,324 | |
Cash flows from financing activities |
|||
Cash inflows | |||
Equity contributions received from SA Government | 127,331 | 25,000 | |
Proceeds from borrowings | 226,152 | 183,600 | |
Cash generated from financing activities | 353,483 | 208,600 | |
Cash outflows | |||
Repayment of borrowings | (803,187) | (174,218) | |
Dividends paid to SA Government | (1,749) | (10,945) | |
Cash used in financing activities | (804,936) | (185,163) | |
Net cash provided by/(used in) financing activities | (451,453) | 23,437 | |
Net increase/(decrease) in cash held |
(9,847) | (20,967) | |
Cash at the beginning of the financial year |
21,083 | 42,050 | |
Cash at the end of the financial year | 19 | 11,236 | 21,083 |
The above statement should be read in conjunction with the accompanying notes.
We certify that the attached general purpose financial statements for the Urban Renewal Authority (trading as Renewal SA):
Internal controls employed by the Urban Renewal Authority for the financial year over its financial reporting and its preparation of the general purpose financial statements have been effective throughout the financial year and there are reasonable grounds to believe the Urban Renewal Authority will be able to pay its debts as and when they become due and payable.
Signed in accordance with a resolution of the Urban Renewal Authority Audit and Risk Committee.
(signed)
C. Menz 16 September 2020 |
(signed)
D. De Luca 16 September 2020 |
(signed)
C. Tragakis 16 September 2020 |
Government of South Australia
Auditor-General’s Department
Level 9, State Administration Centre,
200 Victoria Square, Adelaide SA 5000
Tel: +618 8226 9640
Fax: +618 8226 9688
ABN 53 327 061 410
audgensa@audit.sa.gov.au
www.audit.sa.gov.au
To the Presiding Member
Urban Renewal Authority
I have audited the financial report of Urban Renewal Authority for the financial year ended 30 June 2020.
In my opinion, the accompanying financial report gives a true and fair view of the financial position of the Urban Renewal Authority as at 30 June 2020, its financial performance and its cash flows for the year then ended in accordance with relevant Treasurer’s Instructions issued under the provisions of the Public Finance and Audit Act 1987 and Australian Accounting Standards.
The financial report comprises:
I conducted the audit in accordance with the Public Finance and Audit Act 1987 and Australian Auditing Standards. My responsibilities under those standards are further described in the ‘Auditor’s responsibilities for the audit of the financial report’ section of my report. I am independent of the Urban Renewal Authority. The Public Finance and Audit Act 1987 establishes the independence of the Auditor-General. In conducting the audit, the relevant ethical requirements of APES 110 Code of Ethics for Professional Accountants (including Independence Standards) have been met.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
The Chief Executive is responsible for the preparation of the financial report that gives a true and fair view in accordance with relevant Treasurer’s Instructions issued under the provisions of the Public Finance and Audit Act 1987 and Australian Accounting Standards, and for such internal control as management determines is necessary to enable the preparation of the financial report that gives a true and fair view and that is free from material misstatement, whether due to fraud or error.
The members of the Board are responsible for overseeing the entity’s financial reporting process.
As required by section 31(1)(b) of the Public Finance and Audit Act 1987 and section 27(4) of the Urban Renewal Act 1995, I have audited the financial report of Urban Renewal Authority for the financial year ended 30 June 2020.
My objectives 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 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 Australian Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit. I also:
My report refers only to the financial report described above and does not provide assurance over the integrity of electronic publication by the entity on any website nor does it provide an opinion on other information which may have been hyperlinked to/from the report.
I communicate with the Chief Executive and members of the Board about, 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 the audit.
(signed)
Andrew Richardson
Auditor-General
22 September 2020