Part One - Australian Hearing

Your world
is worth
hearing
Australian Hearing
Annual Report 2009

i
Letter to the Minister
The Hon Chris Bowen MP
Minister for Human Services
Minister for Financial Services,
Superannuation and Corporate Law
Parliament House
Canberra ACT 2600
Dear Minister
I have pleasure in presenting Australian Hearing’s Annual
Report for the financial year 2008/09. The report has been
prepared in accordance with the requirements of the Australian
Hearing Services Act 1991, the Commonwealth Authorities and
Companies Act 1997 and relevant Finance Minister’s orders.
The report outlines the achievements and milestones met
by Australian Hearing in 2008/09. Following a resolution
of the Board, the Directors’ Report of operations
for the year ended 30 June 2009 is included.
Yours sincerely
Kathryn Greiner AO
Chairman
25 September 2009

ii Australian Hearing Annual report 2009
Contents
Part one:
Overview.................................................................iii
Australian Hearing highlights..................... iii
Corporate profile
who are we?..................................................................2
Hearing loss in Australia
It’s more common than you think...........................4
Telscreen TM
our unique, over-the-telephone hearing test........6
Message from the Chairman.........................7
Managing Director’s report.........................10
Year in review......................................................13
Financial highlights..........................................16
Financial summary............................................17
Support for the future....................................18
Part Two:
Australian Hearing in
the community................................................. 19
Client profile:
Danielle Richardson..........................................21
Our Community Service
Obligation program.........................................22
Client profile:
May Howard.........................................................25
case study:
Visiting Docker River.......................................27
Indigenous Services
working together....................................................28
Client profile:
Arthur Heywood................................................31
Voucher services
keeping our clients connected..............................32
Multicultural Services
recognising cultural diversity..............................34
Australian Hearing network.......................36
Case study:
The Black Saturday Victorian
bushfires response............................................38
Part Three:
National Acoustic Laboratories....... 39
Part Four:
Australian Hearing’s
management...................................................... 42
People and Performance...............................42
Case study:
The Voucher Clinical
Assistant program.............................................46
Information Technology
connecting our people............................................47
Case study:
From the city to the outback......................48
Corporate Services
What we’re doing for the environment...............49
Marketing and Communication
Communicating and connecting
with the community.................................................51
Part Five:
About Australian Hearing..................... 53
Human Services Portfolio.............................53
Our corporate governance ..........................55
Board of Directors.............................................60
Directors’ Report................................................61
Board of Directors’ biographies................61
Executive staff members...............................63
Australia Day achievement awards........67
Staff profile:
Terry Clayton........................................................69
Statement of Commitment
to Reconciliation.................................................70
Part six:
Finance.................................................................... 71
Independent Audit Report...........................72
Statement by the Directors.........................73
Financial Statements.......................................74
Appendices............................................................94
Glossary................................................................ 100
Compliance index........................................... 102
Index....................................................................... 103
List of Australian Hearing centres........ 104

iii Australian Hearing Annual report 2009
Part one:
Overview
Australian Hearing highlights
• We increased the number of
Indigenous children seen by
nine per cent and the number
of Indigenous adults by 10 per
cent compared with 2007/08. See
page 28 for more on Indigenous services.
• We launched the Telscreen TM
telephone hearing service, which
provides a free over-the-phone
hearing check, in Cantonese and
Mandarin languages on 20 March
2009. Since its launch, 2,131
calls have been made to the
Cantonese or Mandarin service,
which attracted widespread
coverage in the Chinese media.
See page six for more on Telscreen TM .
• Community Service Obligation
(CSO) client numbers grew
by nine per cent and we
fitted seven per cent more
hearing aids to CSO clients.
• We provided 100,206
CSO services. This was an
increase of four per cent on
the previous year. See page
22 for more on our CSO services.
• We opened 11 new permanent
hearing centres, bringing the
total number of centres to 106.
See page 49 for more on our property.
• We achieved quality certification
to the standard AS/NZS ISO
9001:2008 in March 2009.
See page 50 for more on quality.
Our mission
Australian Hearing provides the best
hearing care, the latest hearing aid
technology, and leads the world in
hearing research.

Part one: overview
1
We introduced five new Siemens
devices throughout the year, including
the Motion, Explorer, Life, Vibe and
Pure products, together with the launch
of the Bluetooth TEK remote
control and the gigaset telephone.
• Our research division, the
National Acoustic Laboratories
(NAL) launched new research,
the Listening in Spatialized
Noise – Sentences (LiSN-S) test
to medical professionals at
the Libby Harricks Memorial
Oration with keynote speaker,
Professor Graeme Clark AC.
• NAL completed recruitment
to the Child Outcomes study;
the outcomes of 475 children
will now be followed until
they reach eight years of
age. See page 39 for more on NAL.
• We performed well this year
given the current economic
conditions. Our percentage
earnings before interest, tax,
depreciation and amortisation
(EBITDA) was more than 10 per
cent. See pages 16–17 for more on finance.
• We increased the number of
culturally and linguistically
diverse (CALD) clients by
3.3 per cent, exceeding our
target of two per cent. See page
34 for more on our CALD program.
• We introduced a virtual human
resources (HR) office for
employees which is accessed
via the intranet. Called MyHR,
the system allows employees to
perform functions traditionally
administered via HR or payroll. See
page 42 for more on people and performance.
Our values
Care for our clients,
stakeholders and ourselves.
Integrity in all we do.
Innovation in our clinical
field and our business.
Team performance
supporting and encouraging
winning teams.
Respect for all people in
all we do.

2 Australian Hearing Annual report 2009
Corporate profile
who are we?
We are the nation’s largest provider of hearing services.
We were established by the Australian Government in
1947 to provide hearing services to children whose hearing
was affected by a series of rubella epidemics and to assist
veterans who suffered hearing damage during World War II.
Australian Hearing is a statutory
authority constituted under
the Australian Hearing Services
Act 1991, reporting to the
Minister for Human Services, and
Minister for Financial Services,
Superannuation and Corporate
Law, the Hon Chris Bowen MP.
We focus on two key areas:
• providing hearing
health services through
a national network of
hearing centres; and
• undertaking research through
the National Acoustic
Laboratories (NAL).
Our programs
We provide hearing services
under the Australian Government
Hearing Services Program, which
is administered by the Department
of Health and Ageing through
the Office of Hearing Services
(OHS). The Hearing Services
Program has two streams – the
Community Service Obligation
(CSO) program and the Voucher
program. We are the sole
provider of services to children
under 21, Indigenous adults
over 50 and adults with complex
hearing needs, through the CSO
program. We also compete with
207 private service providers
for Voucher program clients.
Our services
Our services include assessing
hearing, fitting hearing devices
and providing counselling and
rehabilitative programs to enable
eligible clients to manage their
hearing impairment. Many of
our audiologists are specialists
in particular fields of service
delivery. These include paediatric,
adults with complex rehabilitation
needs and outreach services to
Aboriginal and Torres Strait Islander
clients under the Australian
Hearing Specialist Program for
Indigenous Australians (AHSPIA).
CSO funding also supports NAL.
NAL performs research in hearing
habilitation and rehabilitation and
the prevention of hearing loss.
NAL is also a core party in the
Hearing Cooperative Research
Centre (Hearing CRC) which
commenced in July 2007.
The following table shows the number of audiological services, which includes hearing assessment,
device fitting and rehabilitation services, provided over the five-year period from 2005 to 2009.
Table One: Audiological services provided 2005–2009
(Includes Voucher and CSO clients)
2005 2006 2007 2008 2009
Children 47,315 48,318 49,522 56,130 56,358
Adult clients 296,931 313,747 316,573 327,367 342,494
Total 344,246 362,065 366,095 383,497 398,852

Part One: Overview
3
Graph One: age distribution of active clients
20%
15%
10%
5%
0%
AGED
0–9
AGED
10–19
AGED
20–29
AGED
30–39
AGED
40–49
AGED
50–59
AGED
60–69
AGED
70–79
AGED
80–89
AGED
90–99
AGED
100–109
AGED
110–119
Our clients
Our clients are comprised of
children and young adults under
the age of 21, veterans, Indigenous
adults over 50 and aged
pensioners. To be able to receive
hearing health services under
the CSO or Voucher programs,
clients must meet specific eligibility
criteria. Aged pensioners and
veterans are our largest client
groups and access services through
the Voucher program. See Appendix
2 for specific eligibility criteria.
Our workforce
As at 30 June 2009, Australian
Hearing employed 1,115 people
nationally in a network of 106
hearing centres and a corporate
head office located in Sydney. Key
roles within the network of hearing
centres include clinical, technical,
customer service and management
positions. New Business Assistant
and Clinical Assistant positions
were created this year to support
the network restructure which
took effect 1 July 2008. See
page 42 for more on our people.
Head office functions provide
support to the network operations
and include Corporate Services,
Marketing and Communication,
Indigenous and Multicultural Services,
Information Technology, Finance
and People and Performance. NAL
research and administrative staff
are also based at head office.
Our reach across Australia
As at 30 June 2009, our network
consisted of 106 hearing centres,
including one specialised paediatric
hearing centre and 298 visiting and
remote sites (which provide services
on a regular scheduled basis)
located across Australia. We also
delivered hearing services at 238
Indigenous outreach sites in urban,
rural and remote areas of Australia.
See page 36 for more on our network.
figure One: gender
distribution of
active clients
53%
MALE
47%
FEMALE

4 Australian Hearing Annual report 2009
Hearing loss in
Australia
It’s more common than you think
One in six people in Australia has
a hearing loss. With the ageing of
the Australian population, hearing
loss is projected to increase to one
in every four Australians by 2050. 1
Causes of hearing loss
The most significant single cause of
hearing loss in Australia is exposure
to loud noise. Thirty-seven per cent
of hearing loss is due to excessive
noise exposure. 1 However, hearing
loss can also occur through illness,
accident, exposure to certain
drugs and chemicals, and as part
of the normal ageing process.
Hearing loss
among children
In Australia, between nine and
12 children per 10,000 live births
will be born with a moderate or
greater hearing loss in both ears.
About a further 23 children per
10,000 will acquire a hearing
impairment that requires hearing
aids by the age of 17 through
accident, illness or other causes. 1
Otitis media (middle ear infection)
is often associated with temporary
or fluctuating hearing loss.
This in turn can affect a child’s
learning, language development
and behaviour. The incidence of
otitis media is significantly higher
among Indigenous children, for
whom it represents a serious
health and educational issue.
Hearing loss among
seniors and veterans
More than half the population
aged between 60 and 70 has a
hearing loss. 2 This increases to
more than 70 per cent of those
70 years and older 2 and 80 per
cent of those over the age of 80. 3
Men have a higher incidence
of hearing loss than women, 3
mainly due to noise exposure in
the workplace and during war
service. Hearing loss is the second
most common medical condition
reported by both Australian war
veterans and war widows.
Attitudes to hearing
and hearing loss
Our 2008 report, Is Australia Listening? Attitudes to hearing loss,
researched the perceptions and behaviours of 1,000 Australian
adults regarding hearing health. The report found that:
• one quarter of young Australians (18–34 years) don’t realise
that once your hearing is damaged, it cannot be restored;
• nearly half of 18–34 year old Australians go to noisy bars and pubs
and listen to music through headphones at least once a week;
• sixty per cent of all Australians reported they had suffered from
noticeable tinnitus (also known as ringing in the ears and a sign of
hearing damage) with prevalence higher among young Australians;

Part One: Overview
5
Hearing loss and
depression
We released results of a survey in
2007, which found that people
suffering hearing loss may be
at increased risk of developing
the debilitating effects of
depression. 4 The survey found
that 60 per cent of those with
hearing loss had displayed some
of the symptoms associated
with depression. It also found
that almost 20 per cent of those
with hearing loss demonstrated
at least three key symptoms
of depression. 5 Specifically:
• fifty-two per cent displayed
increased irritability
and frustration;
• twenty-two per cent
had trouble sleeping or
experienced restlessness; and
• eighteen per cent showed a
loss of interest or pleasure
in most activities.
The cost to the economy
Hearing loss costs Australia
almost $12 billion a year.
Almost 160,000 people do not
work because they can not
hear well enough. 1 In addition,
compensation claims for noise
induced hearing loss comprise a
significant proportion of all claims
for occupational diseases. 1
Hearing health solutions
An expertly fitted digital hearing
aid can significantly reduce
the physical and emotional
consequences of hearing loss.
People who wear hearing aids are
less affected by depression, have
improved health, and experience
a better sense of independence
and control over their lives. 6
1 Access Economics: Listen Hear! The
economic impact and cost of hearing loss
in Australia, February 2006. 2 Wilson D,
Walsh PG, Sanchez L and Read P: Hearing
Impairment in an Australian Population,
Centre for Population Studies in
Epidemiology, South Australian Department
of Human Services, 1998. Statistics based
on a 4 frequency average hearing loss
greater than 25dB HL in the worse ear.
3 Mitchell P et al: The Prevalence, Risk
Factors and Impacts of Hearing Impairment
in an Older Australian Community: the
Blue Mountains Hearing Study, 2002.
4 This Newspoll survey was conducted in
July – August 2007 by telephone among
2,401 adults aged 18+ nationally, including
n=305 who live with someone with
hearing loss. 5 Reported by those who
live with someone with hearing loss.
6 National Council of Ageing: The Impact
of Untreated Hearing Loss in Older
Americans, December 1998.
• although 41 per cent of people believed their own hearing
was ‘very good’ or ‘almost perfect’, four in five Australians
reported to know someone with a hearing loss; and
• despite most Australians thinking loud noise was the major cause
of hearing loss, more than two thirds of Australians listen to music
through headphones regularly. Twelve per cent of headphone users
regularly listen at unsafe levels while 48 per cent sometimes do.

6 Australian Hearing Annual report 2009
Telscreen TM
our unique, over-thetelephone
hearing test
The concept of a telephone
hearing test – being able to
call a number and check your
hearing over the telephone
– was first introduced in
2007. We commissioned our
research division, NAL, to
develop a test that would
be suitable for use in Australia.
April Chong, Audiologist, Australian
Hearing Box Hill with Dan Zhou,
Researcher, NAL.
The science behind the test
Professor Harvey Dillon, Research
Director, and NAL developed
Telscreen TM by improving on a
similar telephone hearing check
invented in The Netherlands.
Telscreen TM enables callers to check
their hearing over-the-telephone
in about five minutes. It works
by asking the caller to respond
on their keypad when they can
hear a sound which is played over
the top of background noise.
A computer controls the test and
gradually reduces or increases
the loudness of the digits. The
background noise has gaps in
time and frequency, which greatly
obscures speech for people with
a hearing loss but has a structure
that people with normal hearing
can more easily ‘hear through’.
Based on the caller’s responses, the
computer calculates the level of
the speech, relative to the noise,
at which the caller can just hear.
The test result is compared to
results obtained by people with
normal hearing and the caller
is advised whether his or her
ability to hear in noise is within,
or is outside, the range found for
people with normal hearing.
The test continues
to develop
We launched the first version of
Telscreen TM in September 2007.
More than 55,000 calls were
received in the first two months
of operation. A second, more
sophisticated, version was then
released in January 2008.
This year, to make the test
available to people who speak
other languages, Professor Dillon
and his team developed the latest
version of Telscreen TM , replacing
digits read out in background
noise with ‘tone pips’.
The use of tone pips instead
of digits means that the test
doesn’t rely on knowledge of
any language. Callers simply
respond to the sound of a beep.
This means we can adapt the test
to any language group just by
changing the spoken commentary.
Reaching new audiences
We chose one of the largest
non-English language groups
in Australia – Cantonese and
Mandarin – to launch the
third version of the test.
To do this, we held a media
conference in Sydney’s Chinatown
on 20 March 2009. The response
from Chinese media was excellent,
with more than 12 newspapers,
three radio stations and two TV
stations covering the story.
More than 2,000 calls were
received in the 11 days following
the conference; 65 per cent of
these to the Chinese language
versions. The launch also enabled
us to strengthen our relationships
with key stakeholders from
the Chinese community.
A total of 44,823 completed
calls have been made to
Telscreen TM during 2008/09, of
which 2,131 have been to the
Chinese languages version since
its launch in March 2009.
What next for Telscreen TM ?
Telscreen TM was – and still is – the
most sophisticated telephone
hearing test in the world. The
test helps people take the first
step towards managing a hearing
loss and is a great tool for raising
public awareness of hearing loss.
Plans are underway to
roll out the test in further
languages in 2009/10.

Part One: Overview
7
Message
from the
Chairman
Having said farewell
to our previous
Managing Director,
Ms Anthea Green,
in October 2008,
the Board and I
were pleased to
welcome Mr Steven
Grundy to the role of
Managing Director.
In the prior year,
Steven undertook
the role of Chief
Operating Officer.

8 Australian Hearing Annual report 2009
Message from the Chairman (continued)
Previously the General Manager for
management of Telstra Payphones,
Steven brings strong management
skills to Australian Hearing. In his
eight months as Managing Director,
Steven has built on the organisation’s
strong foundations and has been
an excellent stabilising influence in
this tough economic environment.
Strong financial
performance
In 2008/09, we reported a profit
before tax of $11.5 million, which
was slightly above the budgeted
target of $11.3 million. Australian
Hearing paid dividends during the
year to the Australian Government
through the Department of
Human Services of $4.6 million
against a budget of $4.7 million.
Earnings before interest, tax,
depreciation and amortisation
(EBITDA), as a percentage of
revenue, remained solid at
10.2 per cent compared to
the budget of 10.7 per cent
and last year of 12.0 per cent.
Importantly, the profit before tax
as a percentage of total revenue
was seven per cent compared
to a budget of six per cent.
Australian Hearing focused on
cost savings and careful financial
management and we are delighted
with our financial result for
the year. More importantly, we
continued our quality service to our
clients and reached out to assist
many more in our communities.
New Minister for
Human Services
This year I worked closely with
the former Minister for Human
Services, Senator the Hon Joe
Ludwig. Senator Ludwig attended
many official openings of our
new centres and supported
both Hearing Awareness Week
and our Telscreen TM launches.
Following a Cabinet reshuffle,
Senator Ludwig has now taken
up the role of Cabinet Secretary
and Special Minister of State.
Australian Hearing thanks the
Minister for his support of our
work and we wish him well.
We welcomed the Hon Chris
Bowen MP, who manages
the portfolios of Human
Services, and Financial Services,
Superannuation and Corporate
Law. I met with the Minister
soon after his appointment and
had the pleasure of escorting
him during his visit to National
Head Office in July this year. The
Minister is conscious of hearing
impairment and its effects and
is working with us on improving
the lives and opportunities
of the hearing impaired.
Australian Hearing
Board and Committees
Australian Hearing currently leases
its head office premises at West
Chatswood (NSW). The lease
expires in 2013. To plan for a
potential relocation, we established
a Relocation Committee which
includes Mr Warren Stretton
and me as members of the
Board, along with Mr Stephen
Patterson, Chief Operating
Officer and Mr Steven Grundy to
oversee the negotiations for the
relocation of our head office.
In line with our environmental
values, Board members are now
able to access Board reports
online as we trial paperless Board
meetings. We hope this initiative
encourages our staff to continue to
reduce their paper use. See page 49
for more on our environmental initiatives.
Other Committees of the
Board include the Audit and
Risk Management Committee,
chaired by Mr Warren Stretton;
and the Research Committee,
which I chair. I would like to
thank all our Directors for their
interest, diligence and accessibility
throughout the year. It has been
a real team effort. See page 55 for
more on our corporate governance.
Hearing services for
Indigenous Australians
It is pleasing to report that
we maintained our extensive
Indigenous outreach program,
providing services at 238 locations.
Many service providers are working
together to improve hearing health
inequality. This includes primary,
secondary and tertiary health
services; medical, educational
and audiological; mainstream and
community-controlled services.
Australian Hearing has always been
a leader in providing services to

Part One: Overview
9
Indigenous Australians, whether in
urban, rural or remote locations.
The Indigenous community assists
us in being able to provide these
services throughout Australia. By
working together, we can reduce
hearing loss in children and adults.
Equitable access
to services
I had great pleasure attending a
variety of events throughout the
year aimed at increasing access
to services for our culturally and
linguistically diverse (CALD) clients.
A highlight of the year was the
launch of our Telscreen TM telephone
hearing test to Cantonese and
Mandarin speaking Australians.
See page six for more on Telscreen TM .
Included in these activities were
CALD morning teas held in Sydney,
Brisbane and Melbourne. These
were an opportunity for our
staff to meet key stakeholders
and learn about how we can
best interact with, and improve
our service provision to, CALD
communities. Our website has
been improved to make it easier
for our CALD web users to access
information in the language of
their origin. See page 34 for further
information on our CALD program.
Building strong
relationships with
hearing aid providers
While on a private trip to
Germany in May 2009, I accepted
an invitation to visit Siemens’
headquarters in Erlangen.
Siemens is our major provider of
hearing instruments and I was
delighted to meet with their
senior executives. I shared with
them the challenges of providing
services to our most remote clients
and discussion was fruitful in the
areas of marketing, paediatric
services and developing technology
in the next five to 10 years.
Bushfire emergency
response
The Board was greatly impressed
with the speed with which
the organisation reacted to
the Victorian ‘Black Saturday’
bushfires in February 2009.
Our staff provided services at
Whittlesea, Kinglake and Diamond
Creek outreach sites, as well as
seeing clients at our Reservoir,
Broadmeadows, Box Hill, Croydon,
Morwell, Shepparton, Bendigo,
Eltham, Lilydale and Horsham
centres and visiting sites. Many
staff at these centres reported
feeling humbled by the experience.
This is a great testament to our
staff’s values of caring for people.
The whole organisation supported
their efforts with fundraising
activities and I, along with Mr
Steven Grundy and Mr Stephen
Patterson, was pleased to present
a cheque for $6,831 to the Red
Cross in Sydney. See page 38 for
the Victorian bushfire case study.
Congratulations to staff
This year, we were awarded Silver
at the Australasian Reporting
Awards held in Melbourne for
our 2007/08 Annual Report. I was
delighted to accept the award on
behalf of the organisation and
congratulate the team on this
second consecutive Silver Award.
I would also like to congratulate
our Australia Day achievement
award winners who continue to
meet exceptional standards of
service. This is an internal award
which has been run for more
than 10 years and continues
to acknowledge outstanding
efforts from staff who embody
our core values. For more on
the award winners see page 67.
Looking ahead
In the two years I have had the
privilege of being Chairman of
Australian Hearing, I have noted
the commitment and passion
of the entire team to provide
high quality hearing services.
We have continued to increase
our reach while maintaining our
high quality services, both in
the CSO and Voucher areas.
Our focus in 2009/10 will be to
maintain our strong business
in a challenging economic
environment while continuing to
provide our world class service
to the hearing impaired.
Kathryn Greiner AO
Chairman

10 Australian Hearing Annual report 2009
Managing
Director’s report
I was pleased to take over as
Managing Director of Australian
Hearing in October 2008. It is
an organisation with a long
history and during my time
as Managing Director, I will
be working to maintain our
position as the leading provider
of hearing services in Australia.

Part One: Overview
11
I am proud of the achievements of
the network and head office staff in
continuing to deliver on our Corporate
Plan goals while adapting to a new
structure and a new Managing Director.
The organisation has performed
well during the year and I am
pleased to report that we have
met our profit target for 2008/09.
Delivering this result was a
significant achievement given
the global financial crisis and
changes to OHS processes. Our
staff have shown great resilience
and have taken these challenging
times in their stride. I would like
to take this opportunity to thank
the Australian Hearing team for
their hard work during the year.
Initiatives to ensure strong
financial performance
This year I introduced a number of
measures to strengthen our ability
to respond to market fluctuations.
I established a cost savings group
to review areas of the organisation
where savings could be achieved
without impacting on staff or client
services, along with a revenue
initiatives group which examined
alternative revenue streams. These
groups have representation from all
areas of the organisation and staff
have the opportunity to participate
on a rotating six-monthly basis.
I have been impressed with the
range of great ideas these groups
have already generated, many of
which have been implemented to
the benefit of the organisation.
Solid operating
performance
Australian Hearing operates in
a highly competitive market
with 207 other hearing service
providers. During the year, total
revenue was impacted by factors
beyond our control; however,
profitability remained stable
despite increases in salary costs and
real estate expenditure. Although
we did not meet our revenue
target this year, I’m pleased that
we did meet our profit target.
This was due to the hard work and
dedication of all staff. See pages 16–17
for more on our financial performance.
New network structure
Our network of hearing centres is
the face of our organisation and
both our centres and head office
have delivered exceptional service
and results in challenging times.
During the year, we restructured
the organisation from nine
regions to six, with an emphasis
on increased leadership and
management responsibilities.
This change has strengthened
our ability to react quickly and
effectively to market changes and
conditions. To support the new
structure, we created new clinical
and administrative positions which
have enhanced our clinical service
delivery and provided our staff with
more career pathways. The focus in
2009/10 is to build on this strong
framework to ensure continued
service excellence and profitability.
Taking our service to
the community
This year we purchased a fully
equipped bus to provide mobile
hearing screenings in regional and
urban areas. The bus has provided
the opportunity for us to take
our services to the community
and improve access to services
for clients in rural locations. We
have also taken the bus to two
Indigenous events and visited
seven Indigenous communities
throughout the year. The bus
has generated a lot of interest at
these locations and we have been
successful in providing services
where gaps existed previously.
The mobile service also enabled
us to respond quickly to the
Victorian bushfire emergency in
February this year. Employees
from our centres across Victoria
volunteered to staff and drive the
bus to affected areas to provide
replacement hearing aids, batteries
and support services to anyone
requiring assistance. See page 38
for the Victorian bushfire case study.
We also expanded our telephone
hearing service to include
Cantonese and Mandarin
languages. I was pleased to launch
this third version of Telscreen TM
in March 2009 to the Chinese
community. Telscreen TM has been
well received, with 44,823 calls
to the service this year. We plan
to expand this service into other
languages in 2009/10. See page
six for more on the Telscreen TM story.

12 Australian Hearing Annual report 2009
Managing Director’s report (continued)
Commitment to
Community Service
Obligation clients
We have continued to undertake
excellent work in our Community
Service Obligation (CSO) program,
providing high quality services to
our CSO clients with the Australian
Government funding we received.
In 2008/09, we increased the
number of services provided to
children under 21, adults with
complex hearing needs and
eligible Indigenous clients, and
continued to provide culturally
appropriate services through our
Indigenous outreach program.
We also evaluated our service
delivery through client surveys,
with results indicating high levels
of satisfaction with both service
and devices provided. See page
22 for more on our CSO program.
National Acoustic
Laboratories
Our research division, the National
Acoustic Laboratories (NAL),
continued its research in the areas
of auditory processing disorders,
finalised recruitment to the Child
Outcomes study (which measures
the ability of children to produce
speech, understand speech and
acquire language) and developed
a new formula for prescribing
hearing aids. NAL also conducted
research on the impact of leisure
noise and noise in the workplace,
and developed an improved version
of Telscreen TM . We work closely
with NAL to ensure our hearing
solutions are founded on quality
research. See page 39 for more on NAL.
Growth of centres
and service outlets
In 2008/09 there was a strong
focus on expanding our network of
sites and improving client access.
During the year, we increased our
number of new permanent centres
by 11, opened 34 new visiting
sites, increased the number of
Indigenous Outreach sites by six
and relocated three other centres.
In 2009/10 we will continue to
establish more ground floor, shop
front hearing centres in order to
provide easier access for our clients.
A new executive team
I am pleased to announce that our
previous Chief Financial Officer, Mr
Stephen Patterson, was successful
in obtaining the Chief Operating
Officer role. With a new Executive
Manager People and Performance,
Mr Carel Bothma, and new Chief
Financial Officer, Mr Mario Torresan,
now on board, we have a strong
and energised Executive team to
provide leadership and support to
ensure we achieve our Corporate
Plan goals over the coming year.
See page 42 for more on our people.
We continued to offer staff greater
opportunities for career and
leadership development during
2008/09 and I am pleased with
the progress we have made in
our graduate recruitment and
staff development programs.
Managing Director’s
staff communication
I implemented new internal
communication channels for our
staff this year to ensure that staff
are kept up-to-date with news
from across the organisation. This
has included a regular fortnightly
all staff e-newsletter, a review of
our corporate charity of choice
and sharing of information
across hearing centres via our
intranet, including online staff
profiles and an events calendar.
Achieving accreditation
Our organisation achieved
formal quality certification to the
standard AS/NZS ISO 9001:2008
in March this year. We have been
recognised as a quality certified
organisation, being the only
major hearing organisation to
have achieved this. See page 50 for
more on our quality management.
Future directions
In the coming year we will focus
on Australian Hearing adopting
a more retail look and feel to
meet the changing needs of
our clients. While we have
a commercial focus, we will
continue our valuable clinical
work in the CSO area. Our CSO
work is critical and a significant
part of our service delivery.
We have set a realistic growth
budget for 2009/10. Despite the
financial crisis and increasing
competitor activity, I aim to ensure
that Australian Hearing remains
a commercially viable entity,
ready for the challenges ahead.
I would also like to thank
Ms Anthea Green, our previous
Managing Director, for her
enormous contribution to
Australian Hearing over the past
seven years. I feel privileged
to have taken over a well
run, robust organisation with
competent and vibrant staff who
are passionate about their work
and about making a difference
to the lives of our clients.
Steven Grundy
Managing Director

Part One: Overview
13
Year in review
This year we focused on improving access to our
network of hearing centres by increasing the number of
permanent and visiting sites and providing easier access
and more convenient locations for existing centres.
We also improved access to rural
and Indigenous communities by
purchasing a bus to make our
hearing services mobile. Back
at the office, we improved our
technology in order to provide
remote hearing services.
The Memorandum of Understanding
(MOU) between Australian Hearing
and the Office of Hearing Services
(OHS) for the Delivery of Services
to CSO and Research Activities
2008/09 to 2011/12 was signed in
February 2009. This year, we have
provided services to 2.2 per cent
more children, provided five per cent
more hours of service to adults with
complex needs and provided 14.1
per cent more services to Indigenous
clients, under the Indigenous
Eligibility initiative, than last year.
Other highlights included our
Chinese New Year campaign, the
Chairman’s CALD morning teas, our
response to the Victorian bushfires,
our national fundraising events
for the Cancer Council Australia
and Australian Red Cross and our
2008 Sun-Herald City2Surf team.
The following table shows our
performance in 2008/09 against
our Corporate Plan goals and our
future directions for 2009/10.
Goal Target performance Achievements Directions in 2009/10
Establish a new network
structure and implement a
new model of client care.
New structure
in place by
30 June 2009.
Implementation of
new clinical service
delivery models.
Expand reach
of services into
Indigenous
communities using
new technology.
Recruitment of all
positions was completed
by 1 March 2009.
The Clinical Assistant
model is now standard
business practice.
Remote service trials, to
extend our reach into
remote communities,
have been conducted
throughout 2008/09. This
has incorporated the
use of portable clinical
equipment technology.
Two pilot programs will
be held in the first half
of 2009/10 to explore
the use of a Clinical
Assistant with supporting
CSO service delivery.
The outcomes of the remote
trial project will be reviewed
to determine the potential
for implementation into
business as usual in 2009/10.
Grow Australian
Hearing’s commercial
footprint.
Establish five new
centres to expand
our footprint and
improve strategic
locations.
Increase the number
of new visiting
sites nationally
by at least 36.
Eleven new centres
opened for business.
A total of 34 new visiting
sites were opened.
Four new sites will open
in NSW and Victoria and
three centres will be
relocated during the first
half of the 2009/10 year.
Additional visiting sites
have been identified to
open in early 2009/10.
Ensure
best
business
practice.
Gain ISO-9001
quality accreditation.
Achieved ISO-9001 Quality
Management System
certification for head
office and all centres.
Deliver on our corporate
social responsibilities.
On track Work progressing Did not achieve target this year

14 Australian Hearing Annual report 2009
Year in review (continued)
Goal Target performance Achievements Directions in 2009/10
Exceeded client target for
children by nine per cent
(28,710 children seen).
Met target for
adults with complex
rehabilitation needs.
Increased the number
of current CSO adults
by 12.3 per cent
compared to last year.
Added two new fully
subsidised paediatric devices
to our range in 2008/09:
the Siemens Explorer
and the Phonak Naida.
Provided 269 speech
processors during 2008/09.
Expanded FM product
range as a result of
a tender process.
Provide quality hearing services to CSO
clients within funding allocation.
Deliver services
according to
client targets set
by the OHS.
Provide a higher
level of technology
for CSO clients
based on device
target and funding.
Deliver services according to
client targets set by the OHS.
Deliver services according
to quality standards set
in the Memorandum
of Understanding.
Perform research that leads to improved methods
for assessing, preventing and treating hearing loss
and improving hearing rehabilitation procedures.
Publish 20 scientific
articles.
Investigate
improved methods
for assessing
hearing loss.
Maximise the
amount of research
performed and
disseminated
by leveraging
the CSO funding
with additional
funding sources.
Published 31
scientific articles.
Launched version three
of Telscreen TM telephone
hearing test in Cantonese
and Mandarin in March 2009.
Launched Listening
in Spatialized Noise –
Sentences (LiSN-S) test in
May 2009 for detecting
auditory processing disorder.
Finalised recruitment to
the Child Outcomes study.
Received National Institute
of Health (NIH), OHS and
Cooperative Research
Centre (CRC) grants.
A similar number of
publications to be achieved.
Further language versions
to be rolled out in 2009/10.
Expansion of research
into auditory processing
disorders.
Expansion of research
into electrophysiological
assessment.
Expansion of research into
the impact of leisure noise
on the hearing of young
people and methods for
educating young people.
We will participate in the
APS Indigenous Recruitment
Program as one of several
strategies to increase
Indigenous employment.
Attract and retain the best people in the field.
Increase Indigenous
employees to
2.2 per cent.
Ensure clinical
turnover stays at
or below 11 per
cent and voluntary
turnover no greater
than 15 per cent.
Ensure unplanned
leave at no greater
than 7.0 days per
FTE and workers’
compensation
premium under
0.7 per cent.
As at 30 June there were
1,115 employees, 13
identifying as Indigenous
(1.17 per cent).
Total turnover was 21.6 per
cent, slightly higher than
last year’s 20.2 per cent and
clinical turnover was 14.7
per cent, slightly lower than
last year’s 15.3 per cent.
As at 30 June, unplanned
leave was 4.74 days per
FTE and the workers’
compensation premium
rate was 0.71 per cent.
We will introduce an
overarching Clinical People
Strategy to link attraction,
retention and development
strategies to reduce turnover.
Greater investment will
be made in leadership and
staff development. The
premium rate estimate for
2009/10 is 0.57 per cent.

Part One: Overview
15
Goal Target performance Achievements Directions in 2009/10
Build strong career
pathways.
Performance
Development
System (PDS)
outputs maximised
and effective.
Succession plan in
place for all key
roles and reviewed
quarterly.
Provide robust
mobile service
delivery through
technology with
90 per cent of all
staff who provide
remote services.
Every role in the network
has a PDS for 2008/09.
Head office management
roles and general managers
have documented
succession plans.
Work with managers to
build on existing succession
plans and to manage
talent effectively.
Deliver services using
fast ‘anywhere, any
time’ technology.
Ensure business
intelligence data
is provided as and
when required.
More than 200 NextG
cards deployed; allows
staff to input and access
data in the field.
The development of an
interactive ‘dashboard’
reporting system was
completed and implemented
for the Executive team
and General Managers.
Further NextG deployment
is being reviewed on
a cost versus benefit
basis prior to rollout.
Enhance the IT capability
to deliver business
intelligence data.
Enhance
implementation of
robust information
technologies.
Ensure Australian
Hearing’s IT platform
is continually
upgraded.
One hundred per cent of
planned printer and laptop
upgrades were completed
in 2008/09 (in both cases 33
per cent of the total fleet).
Ensure IT infrastructure
platform is refreshed
appropriately on an
annual basis.
Improve service delivery to and
outcomes for Indigenous and
Culturally and Linguistically
Diverse populations.
Increase take up
of services by
CALD clients by
two per cent.
Expand reach
of services into
six Indigenous
communities using
new technology.
Increase in CALD clients
was 3.3 per cent.
Conducted a 12-month
trial of remote audiology
for Indigenous clients
at six sites: Nhulunbuy,
Derby, Fitzroy Crossing,
Broome, Wadeye and
Mareeba (Cairns).
Increase the take-up of
services by CALD clients
by two per cent.
Review results and, if
appropriate, incorporate use
of remote audiology into
business-as-usual activities.
Provide culturally appropriate
hearing services to eligible
Indigenous clients within
funding allocation.
Meet Indigenous
Eligibility client
target of 2,650.
Meet target of
136 for outreach
program locations.
Under the Indigenous
Eligibility initiative, 2,526
Indigenous people accessed
services – 95 per cent of
target and a 10 per cent
increase on previous year.
Visited 221 Indigenous
outreach sites – 162 per cent
of the target for AHSPIA.
Visited an additional 17
outreach sites funded
under the Indigenous
Eligibility initiative.
Meet Indigenous Eligibility
client target of 2,000. Ensure
eligible Indigenous clients
continue to receive high
quality hearing services.
Maintain outreach
program in 2009/10 by
visiting 139 sites.
On track Work progressing Did not achieve target this year

16 Australian Hearing Annual report 2009
Financial
highlights
At the end of 2008/09, we
achieved an actual year to
date profit before tax of
$11.5 million. This was ahead
of a budget of $11.3 million;
an increase of 1.8 per cent.
Profit Before Tax 2004–2009 ($ Millions)
20
15
10
5
Although below last year’s result of $14.9 million,
our profit exceeded our Corporate Plan target.
0
2004
2005
2006
2007
2008
2009
The following graphs illustrate our key financial
ratios and business indicators in 2008/09. See
pages 74–93 for full details of financial performance.
Profit before tax has decreased due to the costs associated with
the implementation of the change management program, plus
increased training and development of clinical staff, combined
with difficult financial conditions in the later half of the year.
Revenue 2004–2009 ($ Millions)
200
EBITDA 2004–2009 ($ Millions)
25
150
100
50
20
15
10
5
0
2004
2005
2006
2007
2008
2009
0
2004
2005
2006
2007
2008
2009
Revenue has continued to grow based on a number of revenue
growth initiatives across all areas of the business. However this
has been at a slightly reduced rate due to the highly competitive
market place.
Earnings before interest, tax, depreciation and amortisation
(EBITDA) has fallen consistent with the reduction in the profit as
we reinvested in people and the business for long-term benefits.
EBITDA 2004–2009 (Percentage)
15
12
9
6
3
return on total assets (percentage)
15
12
9
6
3
0
2004
2005
2006
2007
2008
2009
0
2004
2005
2006
2007
2008
2009
With the fall in EBITDA ($ millions), the EBITDA as a percentage of
revenue has fallen in line with the reduction in profit and smaller
increase in revenue. However, the EBITDA percentage is still more
than 10 per cent, despite the unfavourable economic conditions.
Return on total assets is lower than in prior years, in line with lower
profit before tax and an increased asset base following expansion
in both hearing centres and information technology infrastructure.

Part One: Overview
17
Financial summary
Australian Hearing is accountable
to the Minister for Human Services,
and Minister for Financial Services,
Superannuation and Corporate
Law, the Hon Chris Bowen MP. Our
organisation is managed by a Board
of Directors appointed by the Minister
and is subject to the requirements
of the Commonwealth Authorities
and Companies Act 1997. Annual
Financial Statements are subject to
audit by the Auditor-General and
are provided to the Minister.
Strong performance in
a challenging year
We have achieved another strong
financial performance in a highly
competitive and rapidly changing
market. Despite difficult economic
conditions, we have ensured growth
and consolidation this financial
year. The results have put the
organisation on a strong financial
footing and positions us well for
the challenging period ahead.
Key business indicators
and growth
We have successfully achieved
our target commercial outcomes
during the year. In particular, both
operating profit and earnings
before interest, tax, depreciation
and amortisation (EBITDA) were
a significant positive outcome in
commercial terms. The organisation
has achieved a double-digit EBIDTA
with a strong focus on strategic
capital expenditure spending and
working capital management. In
particular, we have fully selffunded
and expanded our national
network of hearing centres, plus
upgraded our levels of clinical and
IT equipment to nearly $13 million
in total. Australian Hearing has also
paid $4.6 million in dividends to the
Australian Government through the
Department of Human Services.
Risk management and audit
Australian Hearing and our internal
auditor, Deloitte, have undertaken
significant work in risk assessment
and management. During the
year, Deloitte conducted a risk
identification program with
all levels of management. This
involved a detailed assessment to
ensure that risks were adequately
identified and controls put in
place to minimise them.
In addition, we conducted annual
fraud awareness training with
senior managers. As part of the
ongoing program of internal audits
of our national network of hearing
centres, we audited 14 hearing
centres with results showing
that controls were in operation
and functioning effectively.
Our external auditors, the
Australian National Audit Office
(ANAO) and Deloitte, also
conducted a number of successful
operational audits in payroll and
employee entitlements, receipting
and refunds, as well as IT controls
and software management.
Reporting and analysis
We provided quarterly shareholder
reporting to the Department
of Human Services against our
Corporate Plan. This reporting
contained financial and key
performance indicators, as
well as strategic and clinical
performance achievements.
We also provided the Office of
Hearing Services with quarterly
CSO reports on our services
and costs to deliver services to
CSO clients.
David’s favourite sound:
The sound of a ship’s fog horn
on a dark quiet night.
David Mansfield, Group Management
Accountant, Finance.

18 Australian Hearing Annual report 2009
Support for the future
In 2008/09, we implemented strategies that we identified
in 2007/08 as being necessary to ensure that we were
ready for change, resilient to market fluctuations and
able to fulfil our Corporate Plan objectives this year.
Network management
restructured
We restructured the hearing
centre network to ensure that
we are able to quickly plan for
and respond to future challenges,
maintain profitability and grow
the business. The new structure
focuses on strategic planning
and accountability, effective
management and the delivery of
high quality services to our clients.
In line with our commitment to
grow and develop leaders within
the organisation, we created new
support positions to increase
the career choices and pathways
of our staff and created a new
leadership development and
mentoring program. See page 45
for more on our leadership program.
Technology upgraded
This year, we launched our
upgraded network appointment
booking system across all hearing
centres, which has enabled
greater flexibility in booking
appointments for clients. This
change supported new client
service delivery models. See page 47
for more on Information Technology.
New models of client
care for Indigenous
communities
During the year, we trialled a variety
of new technologies and client
care models to improve services to
remote Indigenous communities.
This included remote control of
PCs via NextG connection and
videoconferencing facilities.
Partnering with Miwatj Aboriginal
Health Service at Nhulunbuy on
the Gove Peninsula in Arnhem
Land, Northern Territory and the
Broome Aboriginal Medical Service
in Western Australia, our Perth and
Darwin hearing centres assessed
the effectiveness of having a health
worker in a remote community
working with an audiologist in a
permanent centre. See page 48 for
our remote audiology trials case study.
Being able to increase the
frequency of services into remote
communities allowed for faster and
more flexible service to clients and
enabled us to deliver services in
difficult-to-access areas throughout
the year. See page 28 for
more on Indigenous services.
New supporting
staff positions
We implemented a new role of
Voucher Clinical Assistant this year.
A Voucher Clinical Assistant is a
customer service staff member
who has undertaken further
studies and practice to support
a clinician with their clinical
work. This role allows clients
better access to our service and
assistance. See pages 32 for more on
Voucher services and page 46 for the
Voucher Clinical Assistant case study.
The year ahead
Our main focus for 2009/10 will
be to build on the strengths of
the revised network structure
and to further explore new client
care models and technology
advances to ensure that we
remain at the forefront of
hearing services in the future.
During the year, we trialled a
variety of new technologies
and client care models to
improve services to remote
Indigenous communities.