Stralian Hearing Annual Report 2003–04 - Australian Hearing

Australian Hearing Annual report 2003–04
L O O K F O R W A R D T O B E T T E R H E A R I N G

Australian Hearing Annual report 2003–04

Table of contents
Australian Hearing Services operates as Australian Hearing
iv
HOW TO CONTACT AUSTRALIAN HEARING
27 OUR PEOPLE
Australian Hearing 2004 © ISSN 1444-3325
This work is copyright. Apart from any use permitted under
the Copyright Act 1968, no part may be reproduced by any
process without prior written permission from:
The Marketing & Communications Manager
Australian Hearing
126 Greville Street
Chatswood NSW 2067
Australia
1 LETTER TO THE MINISTER
2 MESSAGE FROM THE CHAIRMAN
4 MANAGING DIRECTOR’S REPORT
6 THE YEAR IN REVIEW
8 CORPORATE PROFILE
30 OUR CLIENTS
32 NATIONAL ACOUSTIC LABORATORIES
35 DIRECTORS’ REPORT
38 CORPORATE GOVERNANCE STATEMENT
41 FINANCIAL STATEMENTS
11 HEARING SERVICE OPERATIONS
68 APPENDICES
18 CORPORATE SERVICES
74 HEARING CENTRE NETWORK
ii AUSTRALIAN HEARING ANNUAL REPORT 2003–04 iii

Letter to the Minister
How to contact
Australian Hearing
HEAD OFFICE
126 Greville Street, Chatswood NSW 2067 Australia
Telephone 02 9412 6800
Client enquiries 131 797
The Hon Julie Bishop, MP
Minister for Ageing
Parliament House
CANBERRA ACT 2600
Dear Minister,
I have pleasure in presenting the annual report for Australian Hearing Services
for the financial year 2003–04. The report relates to administration of the
Australian Hearing Services Act 1991 and has been prepared in accordance with
the requirements of the Commonwealth Authorities and Companies Act 1997
and relevant Finance Minister’s orders.
The directors of Australian Hearing are also responsible for the preparation
of a report of operations under section 9 of the Commonwealth Authorities and
Companies Act in accordance with the Finance Minister’s orders relating to that Act.
Following a resolution of the board, the directors’ Report of Operations for the year
ended 30 June 2004 is included.
Yours sincerely,
International +61 2 9412 6800
Facsimile 02 9413 1571
TTY 02 9412 6802
Website www.hearing.com.au
Email
marketing.enquiry@hearing.com.au
Michael Shepherd
Chairman
1 September 2004
iv AUSTRALIAN HEARING ANNUAL REPORT 2003–04
LETTER TO THE MINISTER 1

Message from the Chairman
Australian Hearing has been
able to offer its clients access
to new, advanced technology
POSITIVE RESULTS
Australian Hearing made significant progress in the
year under review, achieving an operating profit of
approximately $9.3 million in the 2003–04 year
compared to $4 million last year. This was based
on revenues of $126.8 million this year, compared
to last year’s $111.8 million. The net profit after tax
for the 2003–04 year was $5.6 million compared
to a loss of $1.5 million for the previous year.
BUSINESS IMPROVEMENTS
Australian Hearing’s strong financial performance
was the direct result of initiatives taken in the past
two years to improve its business.
COMMERCIAL APPROACH
Its goal was to be more commercial in approach and
ensure that resources were deployed in the most
productive way.
A wide range of initiatives was undertaken to deliver
greater efficiencies. These included improving
information technology services, better
understanding the way staff interact with clients,
implementing quality benchmarks and taking a more
direct approach to marketing Australian Hearing’s
services. New performance-based incentive schemes
were introduced throughout the year for all staff.
The business also focused on the profitability of
hearing centre operations. This included greater
efficiency in the use of IT investments, particularly
appointment book programming and
improved clinical utilisation.
While Australian Hearing will continue
its efforts to increase efficiencies, it will
become increasingly difficult to obtain
the same level of improvement as
shown in the previous year.
In addition to the increased efficiencies,
Australian Hearing has been able to
offer its clients access to new, advanced
technology through its partnership
with Siemens Hearing Instruments.
Australian Hearing’s partnership with
Siemens follows the successful tender
process completed in 2002–2003.
The introduction of the new range of
hearing aids was introduced ahead of
schedule. Staff throughout the country
received extensive training to ensure
Australian Hearing’s clients obtained
the best hearing outcomes from the
new products.
Over the past year, the National
Acoustic Laboratories has continued
its valuable research into hearing with
a tighter and more focused approach.
THE UNIQUENESS OF AUSTRALIAN
HEARING’S SERVICE AND PEOPLE
The success and uniqueness of
Australian Hearing is directly linked
to its people. In November 2003, I
accompanied a team of audiologists
on a visit to the Ngaanyatjarra Lands
of Western Australia. Six days were
spent on the road visiting people in
some of the country’s most isolated
communities: testing children and
adults, fitting hearing aids, checking
classrooms and meeting members
of the community.
These sorts of trips are undertaken
regularly in some of the most remote
areas of Australia. At various times
they involve travel by four wheel
drives, small boats and light planes.
The distances travelled and the
hardships endured demonstrate the
organisation’s reach and the dedication
of its staff.
ACKNOWLEDGMENTS
I would like to thank the board for its
selfless contribution throughout the
year, during the many meetings and
for its advice and guidance between
meetings. I would particularly like to
thank Mr Tom O’Brien and Ms Jennifer
Harris, who retired during the year. Tom
and Jennifer brought commonsense,
diligence and insight to the issues
considered by the board.
I would also like to commend and
thank the staff for their continuing
commitment to the organisation and
the cause to which we are dedicated.
There are many more challenges ahead
and the directors and I are confident
the organisation is well prepared to
meet them.
Michael Shepherd
Chairman
2 AUSTRALIAN HEARING ANNUAL REPORT 2003–04 MESSAGE FROM THE CHAIRMAN 3

Managing Director’s report
“It is the energy, enthusiasm
and care of our staff for
our clients that enables
Australian Hearing to truly
develop and strive to fulfil
its vision.”
AUSTRALIAN HEARING HAS A LONG HISTORY OF EXCELLENCE IN ITS FIELD,
ATTAINING SIGNIFICANT ACHIEVEMENTS IN CLINICAL PRACTICE. It is one of
the largest hearing service providers in the world with a reputation
for innovation and world-leading practices. We are committed to
continuing these achievements within our business capability.
IMPROVING CUSTOMER SERVICE
Australian Hearing built on and completed a number of initiatives in
the past year to improve the quality of our service delivery to clients.
These included the relocation and opening of new centres around
the country, and the expansion of our service delivery to reach
hearing impaired people in some of the most remote communities
in Australia.
We launched two major initiatives in the year to better manage
the way we interact with our clients and to improve our customer
service. The clinical episode review examined the way Australian
Hearing centres manage client interactions, while the support
activity review looked at how we could better manage the tasks
associated with client services and follow up care. These led to
processes that improved productivity.
We also completed the implementation of a new organisation-wide
information database, Australian Hearing Client Information System
(AHCIS), which has enabled our staff to have ready access to client
information and a range of critical business systems and processes,
including a computerised appointment book.
to attract new talent. We have
undertaken several important
initiatives, including bonus schemes
for individuals and teams to keep
competitive with other employers.
NEW BUSINESS STRUCTURE FOR 2005
Australian Hearing will re-configure the
executive for the new year to better
distinguish between our private market
(Voucher) and community service
obligation (CSO) clients.
LEADING EDGE RESEARCH
Australian Hearing’s research team
at the National Acoustic Laboratories
(NAL) is currently applying for a third
seven-year term of the successful
Cooperative Research Centre for
Cochlear Implant and Hearing Aid
Innovation. NAL continued to make
important progress in a number of
areas, particularly in intervention
methods to help infants with
hearing loss.
LOOKING AHEAD
The international shortage of
audiologists and the expanding
demand for hearing services will
continue to pose significant challenges
for Australian Hearing. We have taken
a number of measures to mitigate the
adverse effects this could have on our
business. These include expanding
recruitment campaigns in Australia and
overseas and training audiometrists to
fill projected clinical staff shortages.
Australian Hearing will continue
to explore further efficiency gains
throughout the business, including
improving appointment processes,
enhancing customer service and
distinguishing clinical pathways.
These will all be critical to our
continuing success.
Finally, but most importantly, I would
like to thank our staff for their
contribution throughout the year and
their continued commitment to our
mission. It is their energy, enthusiasm
and care for our clients that enable
Australian Hearing to truly develop
and strive to fulfil its vision.
Anthea Green
Managing Director
EMPLOYER OF CHOICE
We recognise that as the hearing industry becomes increasingly
competitive, Australian Hearing must promote itself as the
‘employer of choice’. To do this we must put strategies in place
4 AUSTRALIAN HEARING ANNUAL REPORT 2003–04 MANAGING DIRECTOR’S REPORT 5

The year in review
AUSTRALIAN HEARING:
• achieved a net
profit of $5.6
million on revenue
of $126.8 million
in the 2003–04
financial year
• provided 335,638 audiological services and
fitted 109,867 hearing aids in 2003–04. More
than 280,000 hearing services were provided
to pensioners and veterans
• implemented a telephone standards protocol
into all hearing centres and head office
departments to improve customer service
• undertook 342
visits to 107
Aboriginal and
Torres Strait Islander
communities
“Bigger network and better service
to look after our customers.”
• fitted hearing aids to 52 infants
in New South Wales, most of
whom were referred from the
State Wide Infant Screening
Hearing (SWISH) program
• established a new specialist
paediatric audiological centre at
Australian Hearing’s head office.
Close to the NAL research team,
this centre will be the leading
practice of its kind in Australia
• opened two new hearing centres in Perth
(Karrinyup and Cannington) and one new centre
in Sydney (Hornsby). Relocated three other
centres—two in Western Australia (Morley and
Fremantle) and one in regional Queensland
(Ipswich)—to new and improved premises
• completed a major
rollout of new highquality
Siemens
hearing aid products
ahead of schedule
• trained 315 clinicians
over a period of four
months to fit and
program the new
Siemens products
• provided 45,993
services to young
Australians under
the age of 21
• conducted two key reviews—the clinical
episode review and the support activity review—
to standardise work practices and improve
client services
• launched
a new internal
IT service desk
• implemented a new quality framework
across the organisation based on the
Australian Business Excellence Framework
• launched
a staff incentive
scheme to reward
the achievement
of key performance
indicators (KPIs)
• conducted a major review of our marketing
program, including a brand awareness study,
and initiated national advertising and public
relations campaigns to raise awareness of
Australian Hearing and hearing loss issues
• held Australian Hearing’s inaugural annual
leadership conference which focused on quality
initiatives, team building and delivering superior
customer service
6 AUSTRALIAN HEARING ANNUAL REPORT 2003–04 THE YEAR IN REVIEW 7

Corporate profile
Australian Hearing competes with about 140 private service providers to provide
services to Voucher clients.
To be eligible to receive services under the Australian Government Hearing
Services Program a person must be an Australian citizen or a permanent resident
21 years of age or older, and a:
“Our network
provides a reach
that is unrivalled
by any other
service provider.”
Audiologists travel to remote regions
of Australia to see Indigenous clients.
AUSTRALIAN HEARING IS THE NATION’S LARGEST PROVIDER OF
HEARING SERVICES. It was established by the Australian
Government in 1947 to provide services to veterans
who had suffered hearing damage during World
War II, and also to assist children whose hearing
was affected by a series of rubella epidemics.
A statutory authority that reports to the Minister
for Ageing, Australian Hearing is divided into three
key areas:
• Hearing centre operations
• Corporate services
• National Acoustic Laboratories
NETWORK STAFF
Australian Hearing centres are staffed by clinicians,
technicians and customer support staff, led by
a district manager. The 75 centres are grouped
into 13 regions, each managed by a regional manager.
Regional clinical advisers provide staff development,
expert advice, review and set clinical standards and
monitor the quality of service delivery.
SERVICE STREAMS AND CLIENTS
Australian Hearing delivers hearing services to the
private market (Voucher) and the community service
obligation (CSO) sectors. Voucher and CSO services are
controlled and administered under the Australian
Government Hearing Services Program by the Office
of Hearing Services (OHS).
• pensioner concession cardholder or a dependant of a cardholder;
• Department of Veterans’ Affairs gold or white repatriation cardholder
(specifically for war related hearing loss) or a dependant of a cardholder;
• sickness allowance recipient or their dependant;
• referred Commonwealth Rehabilitation Services of Australia client; or
• member of the Australian Defence Force.
Australian Hearing is the sole government provider of services to CSO clients.
These include:
• Australian citizens or permanent residents under 21 years;
• eligible adults with complex rehabilitation needs;
• eligible Aborigines and Torres Strait Islanders;
• eligible clients in remote areas.
Australian Hearing’s 75 centres across all states and territories provide services to
assess hearing, fit hearing aids or other appropriate devices, provide counselling,
listening skills training and more extensive rehabilitation programs to help eligible
clients manage their impairment.
YOUNG AND OLD
Australian Hearing’s
clients are at both
ends of the age
spectrum. More than
a third of our younger
clients are under the
age of 10 years, and
about 50 per cent of
our adult clients are
80 years and over.
8 AUSTRALIAN HEARING ANNUAL REPORT 2003–04 CORPORATE PROFILE 9

OUR MISSION Australian Hearing
provides the best hearing care,
THE LATEST HEARING AID TECHNOLOGY
and leads the world in hearing
research.
OUR VISION Australian Hearing will achieve: high quality
client care • SIGNIFICANT COMMERCIAL SUCCESS • excellence
and recognition as one of the world’s leading hearing services
• world leadership in hearing rehabilitation, devices, techniques
and hearing loss prevention • BEING THE PROVIDER OF CHOICE FOR
SERVICES TO ALL ELIGIBLE HEARING-IMPAIRED PEOPLE.
Hearing service operations
—the network
We are committed to building good working relationships with community
groups, professionals such as medical practitioners and teachers, and
organisations which support and service our client groups.
INDUSTRY LEADERSHIP
Australian Hearing’s network provides a reach that is unrivalled by any other
service provider.
Our 57-year heritage and link to the Australian Government underpins our
credibility in the industry and trust among our clients.
Australian Hearing has a national and international reputation for its highly
skilled workforce, large client base and strong technical and research partnerships
that enable us to be at the forefront of service delivery in our sector of the
healthcare industry.
Our management structure is commercial in orientation with a well-established
and efficient system of communications and training, all of which helps
Australian Hearing deliver value to the Australian Government and, most
importantly, to our clients.
Device repairs and
maintenance services are
available at all of our
hearing centres.
“We provide
clients with stateof-the-art
hearing
aid technology and
have increased
their choices.”
Siemens Triano hearing aids
HEARING AID TECHNOLOGY
Australian Hearing completed a major distribution of
Siemens hearing aid products throughout the hearing
centre network.
Our partnership with Siemens, one of the world’s
leading technology companies, has become a
cornerstone in our mission to provide the best
possible hearing aid technology at the best
possible prices.
The new family of devices was evaluated in pilot
studies. Distribution to the network began in July
2003 and was completed ahead of schedule,
receiving positive feedback from clients and staff.
The new range provides greater client choice and the
opportunity to better match devices to clients’ needs.
Siemens product training
The roll out of the new Siemens’ range was a highly
complex and organised process. Following trials
to become familiar with the products, a team of
16 clinical experts trained 315 clinicians and 259
support staff over a period of four months. Not only
were staff required to understand a new range of
high technology hearing aids, they needed to become
competent in using completely new programming
software and explaining the features and benefits
of the new models to clients.
10 AUSTRALIAN HEARING ANNUAL REPORT 2003–04 HEARING SERVICE OPERATIONS 11

Above:
Siemens
hearing aids
offer our
clients
outstanding
sound
quality.
Right: An
accurate
hearing
assessment
is essential
for a
successful
hearing aid
fitting.
Hearing aid range
Siemens’ hearing aids range from fully subsidised models to high technology
devices. They offer clients outstanding sound quality and are available in a number
of styles, including behind the ear (BTE), in the ear (ITE), in the canal (ITC) and
completely in the canal (CIC).
Clients with particular needs who wish to benefit from additional technology can
pay an additional amount for high technology features, including:
• directional microphone for better hearing in background noise situations;
• multiple programs for different
listening situations;
• speech-sensitive signal processing to
improve comprehension and dampen
disruptive background noise.
Our contract with Siemens Hearing
Instruments ensures that as technology
changes, Australian Hearing clients will
continue to have access to state-of-theart
aids.
ADULT CLIENTS
CSO and Voucher clients were offered
an expanded choice of hearing aids this
year, including high-powered digital
models. These new hearing aids have
significantly improved many clients’
hearing and quality of life.
Australian Hearing continues to provide
special assistance to eligible adults
with complex rehabilitation needs.
These clients require specialist services
due to a profound hearing loss in the
better ear, severe hearing loss and
communication impairment, and/or an
additional disability.
Even when fitted with the most
appropriate hearing aids or other
sensory devices, these clients still struggle to understand in everyday situations
because of the severity of their impairment. Australian Hearing offers these clients
a range of specialist services including strategies to help them manage their
hearing loss and its long-term impact. We help them understand their
intervention options and choose the one most appropriate to their disability and
lifestyle. These choices may include a hearing aid or tactile aid or referral for
cochlear implant assessment.
Our adult specialist audiologists offer communication training to improve clients’
listening skills, lip-reading skills and their ability to follow conversational speech.
They also help to improve communication behaviour by exploring a range of
strategies to use in difficult listening situations.
Home visiting services are available for frail and elderly clients who are unable
to travel because of poor health or mobility. Where appropriate, our clinicians
encourage family or carers to be involved in the communication program and will
offer advice regarding the best way to support and communicate with the client.
PAEDIATRIC SERVICES
Improving services to children
New South Wales public hospitals continued their State Wide
Infant Screening Hearing (SWISH) program which commenced
in December 2002. As a result, Australian Hearing centres across
the state received more referrals of children of a younger age than
ever before. Fifty-two babies were fitted with hearing aids between
1 February 2003 and 31 January 2004. This is a significant increase,
as prior to the SWISH program only 18 babies received hearing aids
in their first six months of life in 2002.
Specific training was developed and offered to paediatric
audiologists seeing these infants. We centralised services to hearing
impaired babies in six centres (four in the Sydney metropolitan area,
“Australian Hearing
provided 45,993
services to young
Australians under
the age of 21 in the
past financial year.”
12 AUSTRALIAN HEARING ANNUAL REPORT 2003–04 HEARING SERVICE OPERATIONS 13

and in Canberra and Newcastle) to
concentrate our expertise and make
better use of specialised resources.
A dedicated paediatric hearing centre
was created at Australian Hearing’s
head office at Chatswood, co-located
with the NAL. We see this as an exciting
and positive move for our younger
clients and their families. It will
provide even closer links between our
paediatric audiologists and the NAL
research team. It will also position the Chatswood specialist centre as the leader in
new paediatric audiological techniques and habilitation methods in Australia.
Cochlear implants
Australian Hearing continues to support cochlear implant maintenance, repairs
and upgrades for more than 1,000 children.
Sharing expertise
To share their new expertise with the broader community, some of our clinicians
and researchers have presented papers at conferences in Australia and overseas.
In August 2003, Australian Hearing participated in the second National Newborn
Hearing Screening Conference held at the Sydney Children’s Hospital in Randwick.
Paediatric Services Manager Alison King presented a paper entitled Amplification
for Infants—What are the Issues?
In May 2004, Ms King presented a second paper Protocols for the Audiological
Management of Infants Who Have Auditory Neuropathy (co-written by SC Purdy,
NEW PROTOCOLS Since the
with the Co-operative Research
introduction of universal newborn Centre for Cochlear Implant and
screening for hearing loss in NSW in Hearing Aid Innovation, is
December 2002, Australian
conducting research on this littleknown
condition. Ms King has
Hearing’s manager of paediatric
services, Alison King, has been presented several papers on
instrumental in introducing new Australian Hearing’s work in this
procedures to manage newborn field in Australia and overseas, and
infants and children’s hearing. her protocols in the complex area of
Of particular focus is the unusual auditory neuropathy were reviewed
condition called auditory
and extolled by a number of
neuropathy. NAL, in conjunction international experts.
H Dillon, M Sharma, TYC Ching, W Pearce) at the International Conference on
Newborn Screening, Diagnosis and Intervention, in Como, Italy.
Australian Hearing clinicians and NAL research staff featured at the XVI National
Audiological Society of Australia conference in May, presenting workshops and
more than 20 papers.
ABORIGINAL AND TORRES STRAIT ISLANDER CLIENTS
The incidence of middle ear disease is ten times higher for Aboriginal children
compared to the wider community.
Australian Hearing continues to build its community-based
services in partnership with Aboriginal community-controlled
health organisations and government health and education
services. Australian Hearing audiologists made 342 visits to 107
diverse sites in 2003–4. Several new sites were visited including Bourke and
Kulai in New South Wales and Yulu-Burri-Ba (Stradbroke Island) in Queensland.
Improving learning
Australian Hearing made a submission to a review of Aboriginal education by
the NSW Department of Education and Training on how to improve educational
outcomes for Aboriginal students in that state.
We renewed our contract with the Office for Aboriginal and Torres Strait Islander
Health (OATSIH) and entered into a new contract to purchase and replace
equipment. Our audiologists provided hearing health skills training to another
33 Aboriginal health workers. This program develops health workers’ skills in the
early detection and management of ear disease and hearing loss in children, and
educating the community in the importance of good hearing.
High-risk registers
Following their Australian Hearing training, Aboriginal health workers are setting
up high-risk infant registers, undertaking formal screening for pre-schoolers and
opportunistic screening at “well baby clinics”. This will mean children needing
intervention will be identified and helped much earlier.
“Our audiologists
have continued to
provide hearing
health skills training
to Aboriginal health
workers, bringing
the total to nearly
400 who have been
trained since 1996.”
14 AUSTRALIAN HEARING ANNUAL REPORT 2003–04 HEARING SERVICE OPERATIONS 15

Hearing starts from the beginning
To strengthen its Indigenous community education activities, Australian Hearing
published a series of ‘plain language’ information sheets for Indigenous clients.
A school poster competition was run in Victoria called Hearing starts from the
beginning. The winning poster design and text was the work of Jaryd Day of
“Hearing is important…
like I said before.”
Echuca Primary School and the winning slogan Hearing is
important… like I said before was written by Crystal Brown
of Robinvale Secondary College.
Sharing our expertise
Australian Hearing’s Indigenous Services Manager Christine
Burton and audiologist Leanne Skinner, along with Indigenous
health worker Sarah Boyne, presented a workshop at the
national Audiological Society of Australia Conference in
May in Brisbane. The workshop was entitled: Aboriginal
Health Workers Raising Awareness and Developing Programs
to Reduce Ear Disease and Associated Hearing Loss in
Aboriginal Communities.
Health seminar
Ms Burton was a member of the OATSIH Hearing Health
Seminar Steering Committee that organised a national
Aboriginal and Torres Strait Islander Hearing Health Seminar
in June 2004. The seminar was entitled Berrimpa—Strengthening Pathways,
Connecting People, Policy, Programs and Multidisciplinary Practice for Aboriginal
and Torres Strait Islander Hearing Health.
Australian Hearing also conducted two community education workshops for
Aboriginal health workers, and presented a paper on how Aboriginal education
workers might use a range of tools to help identify, refer and provide support
to children with a conductive hearing loss in the classroom.
“Our new hearing centres
are more visible and
conveniently located near
parking, public transport
and shopping centre
facilities.”
The new Cannington centre is conveniently located in the local shopping centre.
In regional Queensland, the Ipswich centre also relocated to new and improved
premises closer to parking and transport and in Sydney, a new permanent adult
centre was opened in Hornsby.
Planning for new hearing centres is underway to support our reach into the
aged care market as well as to cater for the unique and specialised needs of our
paediatric clients.
COMMUNITY LIAISON AND SUPPORT
In-house training
Our centres continue to present in-house training and
community education to a range of professional and
community groups. These groups include teachers
of the deaf, nurses, community centre staff, Returned
Services League members, Probus and other
community organisations.
SHAPING OUR NETWORK
To cater for the needs of our clients, we will continue to reshape our centres so
they are more visible and more conveniently located near parking, public transport
and shopping centre facilities.
Two new hearing centres opened in Perth—the first at Karrinyup shopping centre
and the second at the Carousel shopping centre at Cannington. Both provide
improved access for clients.
Two centres in Perth were relocated—Morley centre moved to premises outside
the Galleria shopping centre, and Fremantle centre relocated closer to public
transport and parking.
Australian Hearing also fosters relationships with
a wide range of advocacy groups within the hearing
community.
Australian Hearing clinicians often speak to
community groups and at industry events.
16 AUSTRALIAN HEARING ANNUAL REPORT 2003–04 HEARING SERVICE OPERATIONS 17

Corporate services
Quality at work
An important component of Australian Hearing’s approach to quality has been the
ongoing work of the regional clinical advisors and the service practice manager.
“Every hearing
centre and head
office team is
now using a
standardised
process to
address high
priority issues
and improve
service delivery.”
All staff have participated in quality workshops.
QUALITY: PURSUING EXCELLENCE
The first priority for our quality manager was to
review Australian Hearing’s approach to quality and
address any potential gaps. A new Australian Hearing
Quality Framework, based on the Australian Business
Excellence Framework, was adopted and rolled out
across all regions and the head office.
Thirty-nine one-day workshops, as part of
a three-phase program, were held across the
country involving all hearing centre district and
office managers. This workshop focused on
explaining the quality framework and identifying
strengths and opportunities for improvement across
all operational areas. Similar workshops were held
in the head office functional areas.
Every hearing centre and head office team is now
using a standardised process to address high priority
issues and improve service delivery. This approach
to continuous improvement will continue as
fundamental to the way we conduct our business.
Reviewing for improvement
Australian Hearing conducted two major reviews:
the clinical episode review identified opportunities
to streamline processes involved in audiological
service delivery, and the support activity review
focused on streamlining client contact and financial
processes.
Throughout the year the team has reviewed a number of important clinical areas
and brought about significant improvements. They analysed information from
a variety of sources such as client surveys, file audits, product quality reports, peer
reviews and new clinician audits.
The regional clinical advisors spent approximately 15 per cent of their time
undertaking learning and development initiatives to specifically address quality
improvement opportunities. Many clinical practices have been updated and
communicated via internal memos and newsletters.
Australian Hearing also participated in the OHS’ review of clinical standards.
IT: PUSH FOR SERVICE
The information technology services (IT) department successfully
embedded the new Australian Hearing Client Information
System (AHCIS) into the network of 75 hearing centres this year,
replacing the 14-year-old database system. The new integrated
database has enabled improvements to client management and
administration as well as delivering increased operational
efficiency across all centres.
IT service desk
Australian Hearing launched an in-house IT service desk
supporting head office and the hearing centre network in
May 2004. This will be more cost-effective than the previous
outsourcing arrangement
The service desk will be run by staff on a rotating system
from 7:30am until 6pm, Monday to Friday. Staff have received
special training in problem tracking and management and
client telephone interaction. In June, the service desk dealt
with 2,288 calls.
Other IT developments for the year under review include:
• implementing a clinical software strategy solution to support
the rollout of the new hearing aids;
• upgrading clinical software to further support future
developments of hearing aid products;
“Improving resource
management to deliver
greater efficiency across
the network.”
18 AUSTRALIAN HEARING ANNUAL REPORT 2003–04 CORPORATE SERVICES 19

• developing service level agreements with internal customers as part of the
overall strategy to improve customer service;
• assessing new telecommunication technologies (IP telephony and virtual private
network solutions) to improve services and reduce overall costs;
• improving decision support and management information solutions by
leveraging existing investment in Oracle and Business Objects software;
• enhancing an e-business/online services strategy to improve business process
efficiency in areas such as procurement and internal administration;
• implementing the first stage of an office computing asset replacement strategy
across all centres.
FINANCE: DRIVE FOR EFFICIENCY
The major financial management goal in 2003–04 was improved financial
efficiency combined with a more commercial approach in all areas of finance,
logistics and property management.
The finance division:
• improved and refined financial reporting;
• improved the management of working capital;
• established best practice reporting based on KPIs and targets in collaboration
with the hearing centre network;
• promoted fraud awareness among staff;
• improved business systems using the new IT platform;
• better managed existing contracts;
• streamlined administrative duties at head office and hearing centres;
• reduced fitout costs of new centres.
Further details of our financial performance are outlined in the financial
statements.
“To ensure an increased
profit and a return in all
areas of finance, logistics
and property
management.”
Tenders and contracts
Formal and competitive tenders were called for batteries (November 2003) and ear
impression material (January 2004).
The online ordering of hearing aids and ‘just in time’ arrangement with several
suppliers continue to provide benefits to the organisation. This is reflected in
the reduction of national stock levels and the average time stock is held. Our
suppliers include Siemens, Bernafon, Phonak and GN Resound.
The Siemens contract was successfully implemented during the current
financial year.
MARKETING AND COMMUNICATIONS: RAISING AWARENESS
This year the marketing and communications unit undertook a major review of
our marketing program. A series of campaigns was developed, strategically linking
advertising with public relations activities based on planned,
coordinated and scheduled events.
Six national campaigns were conducted, each based on a particular
theme. Designed to reach out to our target clients, this was a
significant initiative for Australian Hearing and part of our efforts
to develop a more strategic approach to branding and advertising.
Branding and image
Australian Hearing undertook a major initiative in 2003–04 to
review its corporate image and brand proposition with a view
to developing a comprehensive new marketing approach for the
business. Both external and internal research was conducted,
including a brand awareness study in August 2003 in the
over-60 age group. This study will serve as a benchmark to assess
the effectiveness of further advertising and marketing initiatives.
Customer service
To improve customer service standards across the organisation,
the marketing and communications team rolled out a national
telephone standards training program. A full-time manager has
now been appointed responsible for customer service education.
This role will focus on improving our approach to customer service
through better systems and educating all staff.
Print and online material
The marketing and communications team also produced a range of news and
information materials aimed at both internal and external audiences. Some of
“The major aim
of our marketing
program is to
encourage older
eligible Australians
to take action about
their hearing loss.”
20 AUSTRALIAN HEARING ANNUAL REPORT 2003–04 CORPORATE SERVICES 21

these include Hear & Now, Australian Hearing’s flagship client
publication, and Network News, an internal monthly staff newsletter.
A number of client information sheets were produced, including
a series of plain language sheets for Indigenous Australians.
Managing and enhancing new technology
The marketing and communications team supported the roll out of
the new Siemens’ hearing aid range by coordinating communications
related to the new products.
In conjunction with other business units, communication with
Siemens was enhanced with the introduction of product and
operations committees.
HUMAN RESOURCES: CARING FOR OUR PEOPLE
Recruitment
Effective recruitment and retention strategies are needed to address the industry
shortage of audiologists.
The human resources (HR) team undertook the following initiatives during
the year:
• review of recruitment strategies to achieve the most effective exposure
and outcomes, including:
– concentrated effort to recruit Masters of Audiology graduates;
– introduction of on-line recruitment;
– dedicated mail outs in industry publications; and
– state specific campaigns
“Effective
recruitment and
retention strategies
are key to being
an employer
of choice.”
• promotion of additional rewards
and benefits to attract clinicians
to difficult-to-staff locations;
• implementation of the ‘Hear the Call’
recruitment campaign, inviting
ex-Australian Hearing clinical
employees to return;
• introduction of the audiometry
training program;
• greater focus on career marketing
at universities and TAFE colleges.
These contributed to the recruitment of 59 audiologists to Australian Hearing
during the 2003–04 financial year.
Retaining audiologists
Recognising that retaining existing employees is just as important as attracting
new recruits, Australian Hearing has adopted a number of measures to optimise
employee retention.
These include:
• developing and implementing an exit interview process to obtain and record the
views of exiting employees. This data will assist in developing future retention
strategies;
• reviewing and redeveloping HR policies to be more flexible, family-friendly, and
supportive of the business.
Classification review
The classification review was first suggested in the Australian Hearing Certified
Agreement 1997, and commitment to the review was confirmed in the Australian
Hearing Certified Agreement 2000 and 2002. Over the past 12 months the
following has been undertaken:
• development of position descriptions;
• development of work level standards and definitions;
• salary benchmarking;
• comparison of the position descriptions against the work level standards;
• review of the suitability of the ‘single spine’ salary structure.
The next phase is to consider recommendations and determine appropriate
strategies for any required changes in position classification.
22 AUSTRALIAN HEARING ANNUAL REPORT 2003–04 CORPORATE SERVICES 23

Family friendly
Part of the Certified Agreement negotiations that commenced in the year in
review was to ensure Australian Hearing provided a flexible and family-friendly
work environment. Recognising that a large majority of our employees are
women, we are negotiating more generous arrangements regarding various
leave entitlements to accommodate, where possible, employee needs.
POLICY: WORKING STRATEGICALLY
The strategic policy unit worked on several initiatives including the Australia-wide
clinical episode review and review of customer service activities. The unit also
played a significant role in the Office of Hearing Services review of clinical
standards.
Hearing services delivery feasibility study
Building our expertise
All new audiologists undergo an intensive, structured orientation program over
several weeks covering a range of clinical, administrative and technical areas.
There are many career paths available to clinicians within the organisation, such
as specialising in working with hearing impaired children or adults with complex
rehabilitation needs, research, and management.
Incentive schemes
An industry-wide shortage of audiologists means providers are competing for
a limited pool of clinicians. This has made staffing rural and regional areas
particularly challenging.
In order to offer a range of conditions and benefits in line with the private sector,
Australian Hearing has introduced a voluntary clinical bonus scheme on the sale
of designated devices fitted to Voucher clients. This scheme is subject to a number
of quality criteria being met and clinicians abiding by the Audiological Society of
Australia’s code of ethics. Payment is made only when the client is satisfied with
the fitting and wishes to retain the device.
Australian Hearing participated in provider forums and made submissions to
the Australian Government’s hearing services delivery feasibility study. This
study evaluated a range of options for the delivery of hearing services to eligible
clients under the Australian Government Hearing Services Program, as well as
to private clients.
Exploring opportunities for improvement
Australian Hearing conducted two major reviews simultaneously.
The clinical episode review mapped the adult clinical episode to identify
opportunities to streamline processes to enhance operational efficiency while
achieving a quality clinical outcome for the client. A number of recommendations
were proposed and adopted, delivering value and benefit to the organisation and
a genuine change in the way clinicians and support staff function.
A team incentive scheme was introduced across the organisation to acknowledge
and reward achievement of team goals that contribute to high quality client
service and the success of the organisation. The incentive program helps to
stabilise employment and reward work teams for outstanding performance.
24 AUSTRALIAN HEARING ANNUAL REPORT 2003–04 CORPORATE SERVICES 25

The support activity review aimed to streamline direct client contact and financial
processes and identify efficiencies to offset any additional responsibilities arising
from the clinical episode review recommendations.
Nineteen separate processes were examined to identify the issues and where
improvements could be made. After rigorous testing, we found that most
processes were basically sound and met business needs, while some areas
of efficiencies were identified.
The outcome of these reviews has been a greater emphasis on improving and
standardising processes for greater efficiency and a better customer experience.
Special projects
The policy unit coordinated projects on several topics including intellectual
property, cortical auditory evoked potentials (in conjunction with NAL), an oral
history of Australian Hearing, and clinical care streams.
Ongoing liaison
An important function of the strategic policy unit is liaison with various key
organisations and groups including the OHS, Office for Aboriginal and Torres
Strait Islander Health, Hearing Services Industry Forum, Cochlear Ltd and Deafness
Forum Australia. Contact was also maintained with early intervention agencies
such as the Shepherd Centre, Hear & Say Centre, and Royal Institute for Deaf and
Blind Children.
Our people
THE COMMITMENT OF OUR STAFF AND THEIR DEDICATION TO HELPING PEOPLE
WITH HEARING IMPAIRMENT HAS LED TO ADVANCEMENTS IN TECHNOLOGY AND
TECHNIQUES THAT ARE NOW USED WORLDWIDE. We help set the standards
for global industry practice. Each team member, including
researchers, clinicians, technicians and customer service staff,
has been a key contributor to Australian Hearing’s success, as
have many clients and their families.
EXECUTIVE STAFF MEMBERS
Ms Anthea Green,
managing director
Ms Michele Clapin,
senior regional
manager—north
Ms Margaret
Dewberry,
manager, strategic
policy unit
Dr Harvey Dillon,
director of
research, National
Acoustic
Laboratories
Ms Jenny
Donnithorne,
manager,
marketing and
communications
Ms Gina Mavrias,
senior regional
manager—south
Mr Stephen
Patterson, chief
financial officer
and secretary
to the board
Mr Bernie
McKenna, manager,
quality
Ms Janet Norton,
manager, human
resources
Mr Bill Sharpe,
chief information
officer
26 AUSTRALIAN HEARING ANNUAL REPORT 2003–04 OUR PEOPLE 27

“Each team member
has been a key contributor
to our success.”
EXECUTIVE
Australian Hearing wishes to acknowledge Philip Kimbell, who left the
organisation during the year, after a period of long service in a senior position
at Australian Hearing. We wish to thank him for his contribution.
AUSTRALIA DAY AWARDS
During the year, individual achievement awards were awarded to staff members
for their contribution to the goals and values of Australian Hearing, their individual
performance and customer service. The recipients of this year’s awards were:
HEIDI SILBERSTEIN Ms Silberstein was recognised for her role as the district
manager of the Darwin hearing centre. She initiated many clinical and
administrative improvements that helped build a stronger hearing centre. Her
work was recognised both by her managers and the Australian Government’s
Office of Hearing Services.
MANDY TEMPLE Ms Temple has excelled as the district manager of both Morwell
and Pakenham in Victoria. She has made vast improvements in both centres, and
her tireless efforts have strengthened both centres’ contributions to the
organisation.
PATRICK WILLIAMSON Mr Williamson was recognised as the acting district
manager of the Port Macquarie hearing centre in NSW, as well as manager of the
customer support centre for the network. His outstanding commitment to the
organisation and enthusiasm for excellent client service inspires his colleagues.
Team Achievement awards went to the Albury hearing centre in NSW and the
Pakenham hearing centre in Victoria for their contribution to the goals and values
of Australian Hearing, overall team performance, customer service and successful
delivery of specific team outcomes.
SPECIAL MENTIONS
We also wish to recognise Nina Quinn and Sharon Keane for their considerable
contribution to Australian Hearing.
NINA QUINN has performed exceptional work throughout her career with
Australian Hearing. Under her management of a NSW region, many centres
have considerably improved their performance. She has also chaired the
committee that has managed our charity contributions.
SHARON KEANE contributes greatly to the Australian Hearing community.
Her work in the Australian Hearing Specialist Program for Indigenous
Australians (AHSPIA) deserves particular commendation, and her support of
Darwin and the far North Queensland hearing centres has been recognised.
EMPLOYEE OF THE YEAR Teresa Ching, a senior researcher at NAL, received
the inaugural Australian Hearing Employee Achievement of the Year Award.
The award is given on the basis of the exceptional contributions by a person
who has gone beyond individual and corporate goals, for the greater good
of the community.
Reversing misconceptions Through her research, Dr Ching has reversed some
commonly held misconceptions about hearing aids. She has demonstrated
that hearing aids in the opposite ear help people with cochlear implants in
daily life. Her research has illustrated how a hearing aid should be adjusted
to best complement the cochlear implant.
She has also devised a new method to measure the effectiveness and
suitability of individuals’ hearing aids or cochlear implants. The method is
based on two interview-based questionnaires to gather specific feedback from
parents and teachers about the functionality of children’s hearing aids. They
are called Parent’s Evaluation of Aural/Oral Performance of Children (PEACH)
and Teacher’s Evaluation of Aural/Oral Performance of Children (TEACH).
Research results Dr Ching presented her research results in the combined use
of hearing aids and cochlear implants in children and adults at the Bimodal
Hearing Seminar in Tokyo, Japan, in February 2003, at which she was the sole
presenter. She was the guest of honour and keynote speaker at the Triennial
Swedish Combined Audiological conference in Stockholm in May 2003.
Last year, she received first prize, sponsored by Medical Electronics Austria, for
her poster presentation in Manchester on the use of hearing aids with cochlear
implants. Her articles on fitting children with NAL-Non Linear1 (NAL-NL1) were
rated among the best in audiology for the year by The Hearing Journal,
published in the USA.
Dr Ching’s background is in language and linguistics and she holds
a PhD in linguistics from the University of London.
“Going beyond
individual and
corporate goals
for the greater
good of the
community.”
28 AUSTRALIAN HEARING ANNUAL REPORT 2003–04 OUR PEOPLE 29

Our clients
“Grace has helped
her grandfather to
see his hearing loss
and the wearing
of hearing aids
as normal.”
FAMILY ACCEPTANCE
Grace Young and her grandfather John Kenney both
have a significant hearing loss, but Grace’s optimism
has changed her grandfather’s life and helped him
accept his condition too.
An audiologist at Australian Hearing’s centre in
Mt Gravatt, Queensland, diagnosed Grace with severeto-profound
hearing loss in her left ear, and mild-tomoderate
hearing loss in her right when she was only
two-years old. “My initial reaction was shock,” says her
mother Catherine. “I think I cried for three days.”
Progressing well
Now Catherine has come to terms with Grace’s
hearing loss. With the aid of her teachers and speech
pathologists at Yeerongpilly special education unit,
Grace is progressing well. She wears her hearing aids
comfortably all day and is proud of them. Each time she
needs a new earmould she chooses a different colour.
Grace’s grandfather, however, took many years to
accept his hearing loss. Although he missed the odd
word in a conversation at social functions, John did not
think he needed a hearing aid and he was put off by his
mother’s experience.
“My mother wore bulky metal hearing aids that caused
her inconvenience and embarrassment,” he says.
At 68, John’s hearing loss was getting worse and he
made an appointment with a private hearing service
provider for a hearing test. The consultant fitted him
with two hearing aids but, to his dismay, outside noises
were intolerable.
New hearing aid
Then his daughter Catherine suggested he go
to Australian Hearing. He was fitted with a new
hearing aid with different characteristics and
controls. “I now use my aids most of the time
and the results have been fantastic,” says John.
“They are exactly like my granddaughter’s except
mine aren’t brightly coloured.”
JACK AND THE MIRACLE
Jack Crombie was born on Kenmore Park station in
South Australia in 1934. Until the age of six, he was
“doing walkabout” around the Pitjantjatjara Lands
in South Australia.
In 1994, Jack attended the Port Large Police Academy
in South Australia, becoming well known for his
expert tracking abilities in South Australia and New
South Wales. He met his wife, Gwen, 11 years ago
when he was stationed at Cooper Pedy. The couple
now lives at Docker River Community south west
of Alice Springs.
Boxing and flying
Jack first became aware of his hearing loss in 1996
while in the police force. He is unsure of what caused
the hearing loss, but thinks that his time boxing,
along with flying in noisy planes without hearing
protection, may have been factors. He purchased
two hearing aids privately in 1997, but they stopped
working after a few years.
In 2002, Jack went to Australian Hearing in Alice
Springs because his hearing had become worse.
His test results showed mild-to-severe sensorineural
hearing loss in both ears. He needed hearing aids
to hear at community meetings, and listen to the
Catherine is delighted that shared hearing loss
has deepened the relationship between John and
Grace. “They were at opposite ends of the spectrum
in terms of acceptance of their hearing impairment,”
she says. “I think Grace has helped Dad to see his loss
and the wearing of hearing aids as normal.”
television at a volume
that would not “deafen
the wife”.
Amazing results
Jack was fitted with behindthe
ear hearing aids and was
amazed at the result. Now
he loves being able to follow
“He loves being
able to follow
conversation
and hear birds
singing.”
conversation and hear birds singing. Gwen reports
that he wears them all the time, except when
sleeping and showering.
Jack visits the hearing centre in Alice Springs when
they are in town, or at Docker River Community
(which Australian Hearing visits three times a year).
He describes Australian Hearing’s service as “really
good—a miracle”.
Jack and wife Gwen with his audiologist Rebecca McCulloch (left).
30 AUSTRALIAN HEARING ANNUAL REPORT 2003–04 OUR CLIENTS 31

National Acoustic
Laboratories
“A critical source
of information in
hearing and noise
in Australia and
overseas.”
Testing the reception of sound within the
brain, using scalp electrodes, means hearing
aid effectiveness can be assessed in infants.
Over its 57-year history, the National Acoustic
Laboratories’ (NAL) research into hearing and noise
has improved the ways in which people with hearing
loss can be helped. NAL continues to contribute to
global research in acoustics, audiology, hearing aid
development and hearing loss prevention. Research
scientists present their work at Australian and
international conferences and publish work in
international journals and on the NAL website
(www.nal.gov.au). NAL’s audiological procedures are
widely recognised and adopted worldwide.
NAL’s acoustic test facilities in Chatswood include a
range of special-purpose rooms that are used for
acoustical research, testing and measurement
covering the full range of human hearing and
extending into infrasonics. These facilities are also
used to provide acoustical testing services for private
industry and government.
Infants’ hearing aids
In the past year, NAL has made significant progress on
a world-first study entitled Cortical Potentials which
investigates the brain wave activity associated with
sound. The aim of this study was to create technology
to evaluate the effectiveness of infants’ hearing aids.
Electrodes attached to the scalps of infants with
normal hearing indicated that when the babies
received different speech sounds, correspondingly
different patterns of electrical activity emerged from
the auditory cortex area of the brain. A similar result
occurred for many hearing-impaired infants wearing an
appropriately adjusted hearing aid. When these infants did
not have hearing aids, or had hearing aids with insufficient
amplification, no such patterns occurred.
This new technology is becoming increasingly relevant and
necessary now that NSW has introduced universal newborn
screening for hearing loss. More hearing-impaired babies, as
young as one month old, are now being fitted with hearing aids,
and the research is expected to lead to an objective method to
evaluate the appropriateness of the hearing aid fitting.
Detecting differences
NAL researchers have developed an automated statistically-based method to
detect differences in brainwave patterns in infants in response to sound. This
testing technique should be available commercially in a couple of years. The study
results have been presented at Australian and international conferences.
NAL research
The high international prominence of procedures developed by NAL became
evident during the year in two independent reviews.
• A survey published in the Hearing Journal in the USA in October 2003, cited the
NAL-Non linear 1 (NAL-NL1) prescription formulae as the most-used procedure
for prescribing non-linear hearing aids in the USA, while the NAL-RP formula
(for linear hearing aids) was the second most-used procedure.
• A survey published in Hearing Review in the USA in June 2003, showed that
the Client Oriented Scale of Improvement (COSI) procedure developed jointly
by NAL and Australian Hearing clinicians was the most-used procedure for
evaluating the outcomes of rehabilitation.
Three research studies completed during the year were:
• A study on Personal Stereo Noise Exposure found that one in four people
surveyed listened at volumes and for times that were equivalent to listening
at 85 dBA or higher for eight hours per day, placing them at risk of damaged
hearing.
• A study into the link between auditory processing disorders and reading ability
showed that children who were poor readers were less able to process sounds
within their auditory system than those who read well. The children studied
were between eight and 12 years old.
“More hearingimpaired
babies,
as young as one
month, are now
being fitted with
hearing aids.”
32 AUSTRALIAN HEARING ANNUAL REPORT 2003–04 NATIONAL ACOUSTIC LABORATORIES 33

• A study on Factors Affecting Speech Intelligibility of Hearing Impaired People
looked at 79 people with an average age of 70 years old, and measured the
extent to which they could decipher speech after it was amplified to levels
above their threshold of hearing. The results of this study will form the basis
for the NAL-NL2 method for prescribing hearing aids to be released in the
next financial year.
Directors’ report
ENGINEERING BETTER HEARING Dr Gitte Keidser is a
senior research scientist with NAL and is involved in
a number of research projects. She has qualifications
in audiology and engineering with a PhD from the
Technical University of Denmark.
Technology expert As an expert in the evaluation of
the technological features in hearing aids, Dr Keidser
compared the perceived sound quality of five current
advanced digital hearing aids and related these
perceptions to objective measurements of the
hearing aid’s amplification characteristics. In another
study, she devised and then evaluated guidelines
for fitting multiple memory hearing aids.
Special requirements of people She has been involved
in several projects including:
• devising and evaluating the effectiveness of the
NAL-NL1 prescription procedure;
• examining how amplification characteristics should
change with the listening environment;
• investigating how hearing aids alter people’s ability
to locate where sounds come from;
• determining the special requirements of people
with severe and profound hearing loss.
Some of her recent papers include What Amplification
Characteristics Do Hearing Impaired Listeners Want?,
presented at the International Hearing Aid Research
conference in Lake Tahoe, USA in August 2002,
and How Do Hearing Impaired Listeners Want the
Amplification Characteristics to Vary with Listening
Environment? which she co-authored with C Brew,
S Brewer, E Convery and H Dillon.
THE BOARD OF DIRECTORS OF AUSTRALIAN HEARING HAS
PLEASURE IN SUBMITTING ITS REPORT IN RESPECT OF THE
FINANCIAL YEAR ENDED 30 JUNE 2004.
BOARD COMPOSITION
The Australian Government appoints directors,
on fixed terms, to the board of Australian Hearing.
All are non-executive directors, except for the
managing director.
ENABLING LEGISLATION
Australian Hearing is a statutory authority
constituted under the Australian Hearing
Services Act 1991.
RESPONSIBLE MINISTERS
The Hon Julie Bishop, MP, Minister for Ageing,
has responsibility for Australian Hearing.
BOARD OF DIRECTORS
The names and details of the directors in office during
the 2003–04 financial year are detailed below. Unless
otherwise indicated, all directors held their position
as a director through the entire financial year.
34 AUSTRALIAN HEARING ANNUAL REPORT 2003–04 DIRECTORS’ REPORT 35

MR MICHAEL SHEPHERD, FSIA | CHAIRPERSON AND NON-EXECUTIVE
DIRECTOR Vice-chairman Australian Stock Exchange Limited. Director
of the Shepherd Centre for Hearing-Impaired Children, director of the
Committee for Sydney, and national vice president and chairman for
the NSW Council of the Securities Institute of Australia. Member and
chairman of the Australian Hearing audit and risk management committee.
Fellow of the Securities Institute of Australia. Appointed acting chairman
1 July 1988, chairman 8 February 1999. Current term expires 13 April 2005.
MS JENNIFER HARRIS, BA, LLB | NON-EXECUTIVE DIRECTOR Barrister
and solicitor. Director of Defence Housing Authority. Principal legal officer
and solicitor to the ABC. Advised and appeared before the Australian Law
Reform Commission, state and federal Parliamentary committees, the
Copyright Tribunal and various Royal Commissions. Specialises in intellectual
property, defamation, media, entertainment and communications law.
Honorary legal advisor to NSW Medical Women’s Society and member
of St James Ethics Centre. Appointed 29 November 2000. Current term
expired on 14 November 2003.
MR MICHAEL BATCHELOR, BENG (HONS) MENGSC MBA |
NON-EXECUTIVE DIRECTOR Head of NSW operations, Maunsell Australia.
Member of the executive committee of the Committee for Sydney. Fellow
of the Institution of Engineers Australia. Member of the Australian Institute
of Company Directors. Appointed 24 June 2002. Current term expires
18 June 2005.
MR THOMAS O’BRIEN AM, BCOM (HONS), BECON FCA FCPA |
NON-EXECUTIVE DIRECTOR AND CHAIRPERSON OF THE AUDIT AND
RISK MANAGEMENT COMMITTEE Chief executive officer then national
chairman of Ernst & Young Australia. Serves on boards including Defence
Housing Authority, Fiduciary Trust International Australia Ltd, Mercy Health
and Aged Care Inc and Virtual Communities Ltd. Chairman of Church
Resources, CCI Investment Management Ltd, Healthpoint Technologies
Limited and Safe Effect Technologies Ltd. Appointed January 2002.
Current term expired on 14 November 2003.
PROFESSOR FIELD RICKARDS, BSC (HONS) MED PHD |
NON-EXECUTIVE DIRECTOR Professor, education of hearing-impaired
children, head of Deafness Studies Unit, and vice-president of academic
board, University of Melbourne. Previously, senior lecturer in audiology in
the department of Otolaryngology in the faculty of medicine. First appointed
to University of Melbourne as lecturer in 1973, and established Australia’s
first post-graduate training in audiology in 1974. Fellow of the Audiological
Society of Australia. Appointed 24 June 2002. Current term expires
18 June 2005.
MS ANTHEA GREEN, BA | MANAGING DIRECTOR Worked in health
for 20 years at chief executive level in public, private and not-for-profit
sectors. Last few appointments have been General Manager, Royal Hospital
for Women Sydney, CEO of the Victorian Transport Accident Commission
Rehabilitation Centre, CEO of Southern Health New Zealand and CEO of
the National Heart Foundation of Australia. Appointed 23 October 2002.
36 AUSTRALIAN HEARING ANNUAL REPORT 2003–04 DIRECTORS’ REPORT 37

Corporate Governance
statement
THE BOARD HAS DELEGATED AUTHORITY FOR THE OPERATION
AND ADMINISTRATION OF AUSTRALIAN HEARING TO THE
MANAGING DIRECTOR.
• require and monitor legal and regulatory compliance including compliance
with accounting standards, OH&S and other statutory requirements;
• approve annual accounts, annual report and other public documents
and sensitive reports;
• ensure an effective system of internal controls exist and operate
as expected.
The board met eight times during the year to perform the functions
described above.
BOARD OF DIRECTORS
The functions of the board of directors are to:
• formulate the strategic direction for Australian
Hearing;
• approve and review the overall corporate strategies
and significant policies such as the corporate and
operational plans and budget;
• ensure that adequate risk management processes
exist and are being used;
• provide guidance to senior management and meet
regularly and effectively as a board;
• ensure the organisation’s long-term viability and
enhance its financial position;
• approve and monitor financial reporting and capital
management;
• agree to KPIs;
• ensure that Australian Hearing has appropriate
corporate governance structures in place, including
standards of ethical behaviour, and a culture of
corporate and social responsibility;
• monitor/assess performance of the organisation
including the board, management and major
projects;
• monitor developments in the industry and the
operating environment;
AUDIT AND RISK MANAGEMENT COMMITTEE
The Audit and Risk Management Committee of the board has the
following objectives:
• understand, monitor and enhance the management and internal control
framework necessary to manage the business;
• ensure Australian Hearing has appropriate risk identification and management
practices in place;
• provide assurance that Australian Hearing is conducting its affairs ethically and
is maintaining effective controls against employee conflict of interest and fraud;
• provide assurance that financial disclosures made by management reasonably
portray Australian Hearing’s financial condition, results of operations, plans
and long-term commitments;
• continue to improve the objectivity and quality of significant financial
information;
• assist the board to review corporate policies relating to compliance with
laws and regulations and other obligations.
The Audit and Risk Management Committee comprises two non-executive
directors, Mr Michael Shepherd and Mr Michael Batchelor, following the
retirement of Mr Tom O’Brien AM as Chairman. The committee assists the board
in fulfilling its responsibilities. Internal auditing was outsourced to Deloitte Touche
Tohmatsu up to 23 March 2004. Price Waterhouse Coopers was appointed from
24 March 2004.
The committee monitored major tender processes and the implementation
of new supply contracts. Regular reports are received from management and
internal and external auditors, and recommendations for improved internal
controls, processes and efficiencies were implemented. The committee meets
at least once a year with the auditors, independent of management.
38 AUSTRALIAN HEARING ANNUAL REPORT 2003–04 CORPORATE GOVERNANCE STATEMENT 39

THE CANCER COUNCIL Twelve months
ago, Australian Hearing formed a
charity committee with representatives
from the network and head office.
“Helping hearing-impaired people gives
us a lot of satisfaction. But we thought
it would be good to have another
section of the community benefiting
from our effort and enthusiasm,” said
charity committee chair Nina Quinn.
In selecting a nominated charity,
Australian Hearing staff voted for The
Cancer Council Australia. The range of
options for raising funds includes two
different types of salary sacrificing
options, and participation in Cancer
Council events.
Some of these events include
Australia’s Biggest Morning Tea,
selling pink ribbons and daffodils,
supporting the Relay for Life and
Shaving for a Cure, and donating
a unique quilt made out of ties.
A work of art The driving force behind
the tie quilt was Julia Peake, a customer
service officer in Australian Hearing’s
Chatswood centre, who elicited the
support of ABC 702’s Angela Catterns.
“Once Angela interviewed me, the
idea captured the attention of the
whole community. We got ties from
everywhere—including businessmen,
people clearing out their cupboards
and ABC journalists,” said Julia.
The end result was a queen bed-sized
quilt called “Communities”, with the
ensuing publicity giving Australian
Hearing an opportunity to tell the
community about its valuable work.
The quilt will be donated to the Cancer
Council to raise funds for the ongoing
fight against cancer.
PHOTO: BRITTA CAMPION, PHOTO MEDIA DESIGN, SYDNEY
42 INDEPENDENT AUDIT REPORT
44 STATEMENT BY DIRECTORS
45 STATEMENT OF FINANCIAL PERFORMANCE
46 STATEMENT OF FINANCIAL POSITION
47 STATEMENT OF CASH FLOWS
Financial statements
48 SCHEDULE OF COMMITMENTS
48 SCHEDULE OF CONTINGENCIES
49 NOTES TO AND FORMING PART
OF THE FINANCIAL STATEMENTS
“It is good to
have another
section of the
community
benefiting from
our effort and
enthusiasm.”
40 AUSTRALIAN HEARING ANNUAL REPORT 2003–04 FINANCIAL STATEMENTS 41

42 AUSTRALIAN HEARING ANNUAL REPORT 2003–04 FINANCIAL STATEMENTS 43

Financial statements
for the year ended 30 June 2004
STATEMENT BY DIRECTORS
In our opinion, the attached financial statements for the year ended 30 June 2004
are based on properly maintained financial records and give a true and fair view
of the matters required by the Finance Minister’s Orders made under the
Commonwealth Authorities and Companies Act 1997.
Further, at the date of this statement in our opinion, there are reasonable grounds
to believe that Australian Hearing will be able to pay its debts as and when they
become due and payable.
This statement is signed for and on behalf of and in accordance with a resolution
of the directors of Australian Hearing.
Michael Shepherd
Anthea Green
Chairman
Managing Director
Statement of financial performance
FOR THE YEAR ENDED 30 JUNE 2004
REVENUE
Revenues from ordinary activities
2004 2003
Note $000’s $000’s
Sales of goods and services 5a 126,274 111,649
Interest 5c 543 184
Revenue from sale of assets 6e 19 5
Total revenues from ordinary activities 126,836 111,838
EXPENSES
Operating expenses from ordinary activities
Employees 6a, 8 50,501 46,411
Suppliers 6b 61,860 63,083
Depreciation and amortisation 6c 5,676 4,194
Write down of assets 6d 388 166
Value of assets sold 6e 304 65
Total operating expenses from ordinary activities 118,729 113,919
Profit (loss) from ordinary activities before income
tax equivalent 8,107 (2,081)
Less income tax equivalent expense relating to
ordinary activities 7 (2,464) 593
Profit (loss) from ordinary activities after income
tax equivalent 5,643 (1,488)
Net profit/(loss) 5,643 (1,488)
Net profit (loss) attributable to the Commonwealth 5,643 (1,488)
Net credit/(debit) to asset revaluation reserve 1c,12 (266) –
Adjustments arising from standards recognised
as direct debit (credit) to equity 1b, 12 (109) (1,828)
Total changes in equity other than from
transactions with owners as owners 5,268 (3,316)
1 September 2004
The above statement should be read in conjunction with the accompanying notes
The above statement should be read in conjunction with the accompanying notes
44 AUSTRALIAN HEARING ANNUAL REPORT 2003–04
FINANCIAL STATEMENTS 45

Statement of financial position
AS AT 30 JUNE 2004
ASSETS
Current assets
2004 2003
Note $000’s $000’s
Cash 20,21 16,070 3,197
Receivables 9a 5,637 3,218
Inventories 9b 2,229 2,859
Work in progress 9c 4,666 5,013
Tax assets 9d – 964
Accrued revenues 9e 213 1,452
Other 9e 957 693
Total current assets 29,772 17,396
Non-current assets
Land and buildings 10a, d 5,071 5,693
Plant and equipment 10b, d 7,949 10,038
Intangibles 10c, d 7,601 9,015
Tax assets 10f 636 182
Total non-current assets 21,257 24,928
Total assets 51,029 42,324
LIABILITIES
Current liabilities
Payables 11a,20,21 6,853 5,971
Provisions 11e 5,846 4,741
Unearned revenues 11b 12,034 11,805
Tax liabilities 11c 1,955 0
Other 11d 3,387 815
Total current liabilities 30,075 23,332
Non-current liabilities
Provisions 11f 10,944 10,863
Total non-current liabilities 10,944 10,863
Total liabilities 41,019 34,195
Net assets 10,010 8,129
EQUITY
Retained profits 8,741 6,594
Reserves 1,269 1,535
Total equity 12 10,010 8,129
Statement of cash flows
FOR THE YEAR ENDED 30 JUNE 2004
OPERATING ACTIVITIES
Cash received
2004 2003
Note $000’s $000’s
Sales of goods and services 124,503 113,849
Interest 471 170
Total cash received 124,974 114,019
Cash used
Employees (49,315) (45,937)
Suppliers (59,760) (61,408)
Income tax equivalent – (874)
Interest Paid – –
Total cash used (109,075) (108,219)
Net cash from operating activities 13 15,899 5,800
INVESTING ACTIVITIES
Cash received
Proceeds from sale of property, plant and equipment 19 5
Total cash received 19 5
Cash used
Purchase of property, plant & equipment (2,230) (6,342)
Total cash used (2,230) (6,342)
Net cash used by investing activities (2,211) (6,337)
FINANCING ACTIVITIES
Cash used
Dividends paid (815) –
Total cash used (815) –
Net cash used by financing Activities (815) –
Net increase/(decrease) in cash held 12,873 (537)
Add cash at beginning of reporting period 3,197 3,734
Cash at end of reporting period 16,070 3,197
The above statement should be read in conjunction with the accompanying notes
The above statement should be read in conjunction with the accompanying notes
46 AUSTRALIAN HEARING ANNUAL REPORT 2003–04
FINANCIAL STATEMENTS 47

Schedule of commitments
AS AT 30 JUNE 2004
BY TYPE
Other commitments
2004 2003
Note $000’s $000’s
Operating leases 1h 14,660 16,630
Total other commitments 14,660 16,630
Commitments receivable (1,333) (1,512)
Net commitments 13,327 15,118
BY MATURITY
Operating lease commitments
One year or less 5,550 6,119
From one to five years 7,552 8,964
Over five years 225 35
Total operating lease commitments 13,327 15,118
Lease commitments are for office accommodations and motor vehicles.
Schedule of contingencies
AS AT 30 JUNE 2004
2004 2003
$000’s
$000’s
Contingent assets and liabilities
Contract performance bonuses – 500
– 500
Notes to and forming part
of the financial statements
FOR THE PERIOD ENDED 30 JUNE 2004
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of accounting
The financial statements are required by clause 1(b) of Schedule 1 to the Commonwealth
Authorities and Companies Act 1997 and are a general purpose financial report.
The statements have been prepared in accordance with;
• Finance Minister’s Orders (being the Commonwealth Authorities and Companies (Financial
Statements for reporting periods ending on or after 30 June 2004) Orders);
• Australian Accounting Standards and Accounting Interpretations issued by the Australian
Accounting Standards Board;
• Consensus Views of the Urgent Issues Group.
Australian Hearing’s Statements of Financial Performance and Financial Position have been
prepared on an accrual basis and are in accordance with historical cost convention, except for
certain assets which, as noted, are at valuation. Except where stated, no allowance is made for
the effect of changing prices on the results or on the financial position of Australian Hearing.
Assets and liabilities are recognised in Australian Hearing’s Statement of Financial Position
when and only when it is probable that future economic benefits will flow and the amounts of
the assets or liabilities can be reliably measured. Assets and liabilities arising under agreements
equally proportionately unperformed are however not recognised unless required by an
Accounting Standard. Liabilities and assets that are unrecognised are reported in the Schedule
of Commitments and the Schedule of Contingencies.
Revenues and expenses are recognised in the Statement of Financial Performance when and
only when the flow or consumption or loss of economic benefits has occurred and can be
reliably measured by Australian Hearing.
(b) Changes to accounting policy
The accounting policies used in the preparation of these financial statements are consistent
with those used in 2002–03 except as stated.
Property, plant and equipment assets are being revalued progressively as explained in note 1(c).
(c) Property (land and buildings), plant and equipment
ASSET RECOGNITION THRESHOLD
Purchases of property, plant and equipment are recognised initially at cost in the Statement
of Financial Position, except for purchases costing less than $2,000, which are expensed on
acquisition (other than where they form part of a group of similar items which are significant
in total).
REVALUATIONS
Land, buildings, plant and equipment are revalued progressively in successive three-year cycles
so that no asset has a value greater than three years old. Revaluations up to 30 June 2002 were
done on a deprival basis; revaluations from 1 July 2002 are at fair value. Revaluation increments
and decrements in each year of transition to fair value that would otherwise be accounted for
as revenue or expenses are taken directly to accumulated results in accordance with the
transitional provisions of AASB 1041 Revaluation of Non-Current Assets.
The above statement should be read in conjunction with the accompanying notes
The above statement should be read in conjunction with the accompanying notes
48 AUSTRALIAN HEARING ANNUAL REPORT 2003–04
FINANCIAL STATEMENTS 49

Fair and deprival values for each class of assets are determined as shown below:
Asset class Fair value measured at: Deprival value measured at:
Land Market selling price Market selling price
Building Market selling price Depreciated replacement cost
Leasehold improvements Depreciated replacement cost Depreciated replacement cost
Plant and equipment Market selling price Depreciated replacement cost
The financial effect of this change in policy relates to those assets recognised at fair value
for the first time in the current period where the measurement basis for fair value is different
to that previously used for deprival value. The financial effect of the change is given by the
difference between the fair valuations obtained for these assets in the current period and the
deprival based valuations recognised at the end of the previous period. The financial effect by
class is as follows:
Asset class Increment / (decrement) to asset class Contra Account
Plant and equipment 2004: (449,000) Reserves
2003: (493,000) Reserves
Leasehold improvement 2004: 424,000 Reserves
2003: (368,000) Reserves
(109,000) Retained profits
The total financial effect was to decrease the carrying amount of property plant and equipment
by $322,000, leasehold improvement by $53,000, decrease revaluation reserves by $266,000,
and decrease accumulated results by $109,000.
Assets in each class acquired after the commencement of a progressive revaluation cycle are
not captured by the progressive revaluation then in progress.
IMPAIRMENT OF NON-CURRENT ASSETS
Non-current assets carried at up to date fair value at the reporting date are not subject to
impairment testing. Non-current assets carried at cost or deprival value have been tested
for their recoverable amount at the reporting date.
FREQUENCY
Land and buildings are revalued progressively in successive three-year cycles. The current cycle
commenced 1 July 2002. The current year is the last year of progressive revaluation as the
Finance Minister’s Orders require all property plant and equipment to be measured at up to
date fair value from 30 June 2005.
DEPRECIATION AND AMORTISATION
Depreciable property, plant and equipment assets are written off to their estimated residual
values over their estimated useful lives to Australian Hearing using, in all cases, the straight line
method of depreciation. Leasehold improvements are depreciated on a straight-line basis over
the lesser of the estimated useful life of the improvements or the unexpired period of the lease.
Depreciation/amortisation rates (useful lives) and methods are reviewed at each balance
date and necessary adjustments are recognised in the current, or current and future reporting
periods, as appropriate. Residual values are re-estimated for a change in prices only when
assets are revalued.
Depreciation and amortisation rates applying to each class of depreciable asset are based
on the following useful lives:
2004 2003
Buildings on freehold land 40 years 40 years
Leasehold improvements Lease term Lease term
Plant and equipment 5–20 years 5–10 years
The aggregate amount of depreciation and amortisation allocated for each class of asset
during the reporting period is disclosed in Note 6c.
(d) Intangibles
Australian Hearing’s intangible assets comprise both specifically developed software for
internal use, and proprietary software.
All software assets were assessed for impairment as at 30 June 2004. None were found
to be impaired.
Intangible assets are amortised on a straight-line basis over the periods of expected future
economic benefits.
Maintenance expenditure for software is expensed in the period incurred. Expenditure on
enhancements to software is reviewed to determine whether the criteria for the recognition
of assets are met, in accordance with Statement of Accounting Concepts. These criteria include
whether future economic benefits will eventuate and that the value of the asset can be
measured reliably.
Periods of expected future economic benefits:
2004 2003
Specifically developed software 7 years 7 years
Proprietary software 5 years 5 years
(e) Employee benefits
BENEFITS
Liabilities for services rendered by employees are recognised at the reporting date to the extent
that they have not been settled.
Liabilities for wages, salaries (including non-monetary benefits) and annual leave are measured
at their nominal amounts. Other employee benefits expected to be settled within 12 months
of their reporting date are also measured at their nominal amounts.
The nominal amount is calculated with regard to the rates expected to be paid on settlement
of the liability.
All other employee benefit liabilities are measured at the present value of the estimated future
cash outflows to be made in respect of services provided by employees up to the reporting date.
The discount rate used was the applicable Commonwealth government bond rate.
LEAVE
The liability for employee benefits includes provision for annual leave and long service leave.
No provision has been made for sick leave as all sick leave is non-vesting and the average sick
leave taken in future years by employees of Australian Hearing is estimated to be less than
the annual entitlement for sick leave.
The leave liabilities are calculated on the basis of employees’ remuneration, including Australian
Hearing’s superannuation contribution rates to the extent that the leave is likely to be taken
during service rather than paid out on termination.
The non-current portion of the liability for long service leave is recognised and measured at the
present value of the estimated future cash outflows to be made in respect of all employees in
respect of services provided as at 30 June 2004.
The above statement should be read in conjunction with the accompanying notes
50 AUSTRALIAN HEARING ANNUAL REPORT 2003–04
The above statement should be read in conjunction with the accompanying notes
FINANCIAL STATEMENTS 51

SEPARATION AND REDUNDANCY
Provision is made for separation and redundancy benefit payments in circumstances where
Australian Hearing has developed a detailed formal plan for the redundancies and has informed
those employees affected.
SUPERANNUATION
Permanent employees of Australian Hearing are members of the Commonwealth
Superannuation Scheme and the Public Sector Superannuation Scheme. The liability for
employee superannuation benefits is recognised in the financial statements of the Australian
Government and is settled by the Australian Government in due course.
Australian Hearing makes employer contributions to the Australian Government at rates
determined by the actuary to be sufficient to meet the cost to the Australian Government of
the superannuation entitlements of Australian Hearing’s employees. Refer Note 18 for details
of superannuation contributions made.
(f) Inventories
Australian Hearing classifies hearing aids, batteries, accessories, and repair parts as inventory
and values them at the lower of cost or net realisable value. Costs are assigned to inventory
using the average cost method.
(g) Financial instruments
Accounting policies for financial instruments are stated at Note 21.
(h) Leases
A distinction is made between finance leases, which effectively transfer from the lessor to the
lessee substantially all the risks and benefits incidental to ownership of leased non-current
assets, and operating leases, under which the lessor effectively retains substantially all such
risks and benefits.
All properties, apart from one used by Australian Hearing are leased. These leases are classified
as operating leases as the lessors retain substantially all the risks and benefits of ownership.
Operating lease payments are charged to the Statement of Financial Performance on a basis
which is representative of the pattern of the benefits derived from the leased assets. The net
present value of future net outlays in respect of surplus space under non-cancellable lease
arrangements is expensed in the period in which the excess space is identified.
Motor vehicles for senior executives and pooled vehicles for use in the Hearing Centre
operations of Australian Hearing are leased. These leases are classified as operating leases as
the lessor retains substantially all the risks and benefits of ownership. No contingent rentals
exist and there are no renewal options available to Australian Hearing for these leases.
Lease incentives taking the form of ‘free’ leasehold improvements and rent free periods are
recognised as liabilities. These liabilities are reduced by allocating lease payments between
rental expense and the reduction of the liability.
All commitments are GST inclusive where relevant.
Australian Hearing has no finance leases.
(i) Taxation (income tax equivalent)
Australian Hearing is exempt from all forms of taxation except fringe benefits tax and the
goods and services tax. Under Competitive Neutrality (CN) principles however, Government
trading enterprises pay a tax equivalence of State and Commonwealth taxes in full to the
Commonwealth. Australian Hearing became liable for income tax equivalent CN payments
in the year 1999/00.
Tax effect accounting procedures are followed whereby the income tax expense in the
Statement of Financial Performance is matched with the accounting profit after allowing for
permanent differences. The future tax benefit relating to tax losses is not carried forward as
an asset unless the benefit is virtually certain of realisation. Income tax on cumulative timing
differences is set aside to the deferred income tax of the future income tax benefit accounts
at the rates which are expected to apply when those timing differences reverse.
Revenues, expenses and assets are recognised net of GST:
• except where the amount of GST incurred is not recoverable from the Australian Taxation
Office; and
• except for receivables and payables.
( j) Revenue
Revenues are recognised at the fair value of the consideration received net of the amount of
goods and services tax (GST). Exchanges of goods or services of the same nature and value
without any cash consideration are not recognised as revenues.
Australian Hearing receives the majority of its government revenues from two sources: firstly
federal budget funding via the Department of Health and Ageing (Office of Hearing Services
(OHS) Branch) for its community service and research work; and secondly from revenue received
through a competitive voucher scheme administered by the OHS. Funding from the OHS is
recognised when received except for special purpose funding, which is recognised when the
service or goods are provided. Revenue for services provided under the competitive voucher
scheme is recognised when the services are provided. Maintenance fees are paid in advance
and revenue is recognised proportionately over the 12 months that services are provided.
Australian Hearing is a party in the Co-operative Research Centre (CRC) for Cochlear Implant
and Hearing Aid Innovation which is an unincorporated non-partnership venture. Australian
Hearing provides staff and facilities to the venture to conduct research into hearing technology
and receives funds to reimburse expenditures.
Australian Hearing receives grants from organisations to conduct studies into hearing and
noise. Most grant agreements require the grantee to perform services or provide facilities, or to
meet eligibility criteria. In these cases revenue is only recognised to the extent that the services
required have been performed or Australian Hearing has satisfied the eligibility criteria. Where
grant monies are received in advance, a liability is recognised.
Interest revenue is recognised on a proportional basis taking into account the interest rates
applicable to the financial asset.
Revenues from the rendering of consulting services are recognised by reference to the stage
of completion of contracts. The stage of completion is determined to the proportion that time
spent to date bears to the estimated total time of completing the transaction.
Client contributions for the provision of hearing aids are brought to revenue as the goods
are provided.
(k) Goods and services tax
Revenues, expenses and assets are recognised net of the amount of goods and services tax
(GST), except where the amount of GST incurred is not recoverable from the Australian Tax
Office (ATO). In these circumstances the GST is recognised as part of the cost of acquisition
of the asset or as part of an item of the expense.
Receivables and payables are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the ATO is included as a current asset
or liability in the Statement of Financial Position.
Cash flows are included in the Statement of Cash Flows on a gross basis. The GST components
of cash flows arising from investing and financing activities which are recoverable from, or
payable to, the ATO are classified as operating cash flows.
(l) Rounding
Amounts are rounded to the nearest $1,000 apart from the remuneration of directors, officers,
and auditors.
(m) Comparative figures
Where necessary, comparative figures have been adjusted to conform to changes in
presentation in the financial statements.
The above statement should be read in conjunction with the accompanying notes
52 AUSTRALIAN HEARING ANNUAL REPORT 2003–04
The above statement should be read in conjunction with the accompanying notes
FINANCIAL STATEMENTS 53

NOTE 2 ADOPTION OF AUSTRALIAN EQUIVALENTS TO
INTERNATIONAL FINANCIAL REPORTING STANDARDS FROM 2005–06
The Australian Accounting Standards Board has issued replacement Australian Accounting
Standards to apply from 2005–06. The new standards are the Australian Equivalents to
International Financial Reporting Standards (IFRSs) which are issued by the International
Accounting Standards Board. The new standards cannot be adopted early.
For-profit entities complying fully with the Australian Equivalents will be able to make an explicit
and unreserved statement of compliance with IFRSs as well as with the Australian Equivalents.
Existing AASB standards that have no IFRS equivalent will continue to apply.
Accounting Standard AASB 1047 Disclosing the Impact of Adopting Australian Equivalents to IFRSs
requires that the financial statements for 2003–04 disclose:
• an explanation of how the transition to the Australian Equivalents is being managed, and
• a narrative explanation of the key differences in accounting policies arising from the transition.
Management of the transition to AASB Equivalents to IFRSs
Australian Hearing has taken the following steps in preparation towards the implementation
of Australian Equivalents to IFRSs:
• Australian Hearing’s Audit Committee will oversight implementation of the Australian
Equivalents to IFRSs. The Chief Financial Officer is formally responsible for the project and
reports to the Audit Committee on progress.
• The plan requires the following key steps:
– identification of all major accounting policy differences between current AASB standards
and the Australian Equivalents.
– identification of systems changes necessary to be able to report under the Australian
Equivalents.
– preparation of a transitional balance sheet as at 1 July 2004, under Australian Equivalents,
within two months of 30 June 2004.
– preparation of an Australian Equivalent balance sheet at the same time as the 30 June 2005
statements are prepared.
Major changes in accounting policy
Changes in accounting policies under Australian Equivalents are applied retrospectively ie. as if the
new policy had always applied. This rule means that a balance sheet prepared under the Australian
Equivalents must be made as at 1 July 2004, except as permitted in particular circumstances by
AASB 1 First-time Adoption of Australian Equivalents to International Financial Reporting Standards.
This will enable the 2005–06 financial statements to report comparatives under the Australian
Equivalents.
Changes to major accounting policies are discussed in the following paragraphs.
Income Taxes
Under the Australian equivalent to IAS 12 Income Taxes, Australian Hearing will be required
to use a balance sheet liability method which focuses on the tax effect of transactions and other
events that affect amounts recognised in either the Statement of Financial Position or a tax based
balance sheet. The most significant impact will be the recognition of a deferred tax liability in
relation to the asset revaluation reserve. Previously, the capital gains tax effects of asset
revaluations were not recognised.
NOTE 3 REPORTING OF SEGMENTS
Australian Hearing operates predominantly in one industry segment in Australia, providing services
to enhance the hearing health of the Australian community.
NOTE 4 ECONOMIC DEPENDENCY
Australian Hearing received most of its revenue from the Australian Government $105.20 million
(2002/03 $95.14 million). As described in Note 1j, it receives revenue from a competitive voucher
scheme administered by the Office of Hearing Services, and from the delivery of services to
children, clients with special needs, remote and Indigenous clients, and research.
NOTE 5 OPERATING REVENUES
5a SALE OF GOODS AND RENDERING OF SERVICES
Sale of goods
2004 2003
Note $000’s $000’s
Related entities 55,099 46,425
External entities 7,203 7,479
Total Sale of Goods 62,302 53,904
Rendering of services
Related entities 50,102 48,829
External entities 13,870 8,916
Total rendering of services 63,972 57,745
Total sales from goods and services rendered 126,274 111,649
5b COST OF SALES OF GOODS 36,141 38,069
5c INTEREST ON DEPOSITS 543 184
Property plant and equipment
It is expected that the Finance Minister’s Orders will require property plant and equipment assets
carried at valuation in 2003–04 to be measured at up-to-date fair value from 2005–06. This differs
from the accounting policies currently in place for these assets. Up to and including 2003–04, these
assets have been revalued progressively over a three-year cycle and currently include assets at cost
(for purchases since the commencement of a cycle) and at deprival value (which will differ from
their fair value to the extent that they have been measured at depreciated replacement cost when
a relevant market selling price is available).
However, it is important to note that the Finance Minister requires these assets to be measured at
up-to-date fair values as at 30 June 2005. Further, the transitional provisions in AASB 1 will mean
that the values at which assets are carried as at 30 June 2004 under existing standards will stand
in the transitional balance sheet as at 1 July 2004.
The above statement should be read in conjunction with the accompanying notes
The above statement should be read in conjunction with the accompanying notes
54 AUSTRALIAN HEARING ANNUAL REPORT 2003–04
FINANCIAL STATEMENTS 55

NOTE 6 OPERATING EXPENSES
NOTE 7 INCOME TAX EQUIVALENT
6a EMPLOYEE EXPENSES
2004 2003
Note $000’s $000’s
Wages and salaries 38,344 35,874
Superannuation 6,341 4,721
Leave and other entitlements 5,294 4,086
Separation and redundancy 426 1,122
Other employee benefits 96 608
Total employee expenses 50,501 46,411
6b SUPPLIERS’ EXPENSES
Goods from external entities 35,217 35,856
Services from external entities 18,990 19,680
Operating lease rentals 7,653 7,547
Total suppliers’ expenses 61,860 63,083
6c DEPRECIATION AND AMORTISATION
Depreciation of property plant and equipment
Buildings on freehold land 13 13
Leasehold improvements 1,790 1,049
Plant and equipment 2,035 1,991
Total depreciation 3,838 3,053
Amortisation of intangible assets (computer software) 1,838 1,141
Total depreciation and amortisation 5,676 4,194
6d WRITE DOWN OF ASSETS
Bad and doubtful debts 234 83
Intangibles – 83
Inventory 154 –
Total write down of assets 388 166
2004 2003
Note $000’s $000’s
The prima facie income tax equivalent on pre-tax
accounting profit reconciles to the income tax
expense in the financial statements as follows:
Net profit (loss) from ordinary activities 8,107 (2,081)
Prima facie tax payable on operating profit
and extraordinary items before tax at 30% 2,432 (624)
Permanent differences:
– non allowable depreciation on buildings 4 4
– non allowable hospitality 23 11
– other non deductible expenses 5 16
Income tax equivalent expense relating
to ordinary activities 2,464 (593)
NOTE 8 COMPETITIVE NEUTRALITY COSTS
The Competitive Neutrality (CN) policy requires that government trading enterprises should
not enjoy competitive advantage over their private sector competitors simply by virtue of public
ownership. The application of the CN policy to Australian Hearing is to pay a tax equivalence of
State and Commonwealth taxes to Commonwealth consolidated revenue. The amounts paid
or accrued to be paid are as follows:
2004 2003
Note $000’s $000’s
State taxes 1,915 1,707
Federal taxes 2,464 (593)
Dividend 3,387 –
7,766 1,114
6e NET LOSS ON DISPOSAL OF ASSETS
Proceeds from disposal (19) (5)
Book value of assets disposed of 304 65
Total loss on disposal of assets 285 60
Total operating expenses 118,710 113,914
The above statement should be read in conjunction with the accompanying notes
The above statement should be read in conjunction with the accompanying notes
56 AUSTRALIAN HEARING ANNUAL REPORT 2003–04
FINANCIAL STATEMENTS 57

NOTE 9 CURRENT ASSETS
9a RECEIVABLES
2004 2003
Note $000’s $000’s
Receivables for goods and services 5,914 3,661
Less provision for doubtful debts (499) (576)
5,415 3,085
Interest receivable 72 14
GST receivable 150 119
Total receivables 5,637 3,218
Receivables (gross) are aged as follows:
Not overdue 4,203 2,898
Less than 30 days 1,421 216
30 to 60 days 19 161
60 to 90 days 7 16
More than 90 days 486 503
6,136 3,794
The provision for doubtful debts is aged as follows:
30 to 60 days (10) (57)
60 to 90 days (3) (16)
More than 90 days (486) (503)
9b INVENTORIES
(499) (576)
Finished goods 2,367 2,981
Provision for obsolescence (138) (122)
Total inventories held for sale 2,229 2,859
9c WORK IN PROGRESS
Services in progress 4,966 5,013
Less provision for non-recoverable (300) –
9d CURRENT TAX ASSETS
4,666 5,013
Tax refund receivable – 964
9e OTHER CURRENT ASSETS
Accrued other revenue 213 1,452
Other prepayments 957 693
Total other current assets 1,170 2,145
NOTE 10 PROPERTY, PLANT AND EQUIPMENT, AND INTANGIBLES
10a LAND AND BUILDINGS
2004 2003
Note $000’s $000’s
Freehold land—at 2001/02 valuation 350 350
Buildings on freehold land—at 2001/02 valuation 520 520
Accumulated depreciation (156) (143)
364 377
Freehold improvements—at 2000/01 valuation – 15
Accumulated depreciation – (14)
– 1
Freehold improvements—at independent valuation 2004 53 –
Leasehold improvements—at 2000/01 valuation – 10,357
Accumulated amortisation – (7,321)
– 3,036
Leasehold improvements at cost – 2,086
Accumulated amortisation – (157)
– 1,929
Leasehold improvements—at independent valuation 2004 4,304 –
Total land and buildings 10d 5,071 5,693
10b PLANT AND EQUIPMENT
Plant and equipment—at 2000/01 valuation – 18,717
Accumulated depreciation – (12,525)
– 6,192
Plant and equipment—at cost – 4,633
Accumulated depreciation – (788)
– 3,845
Plant and equipment—at independent valuation 2004 7,949 –
Total plant and equipment 10d 7,949 10,037
10c INTANGIBLES
Computer software at cost 11,055 10,629
Accumulated amortisation (3,548) (1,791)
7,507 8,838
Computer software deemed at cost 650 650
Accumulated amortisation (556) (473)
94 177
Total intangibles 10d 7,601 9,015
Total property, plant and equipment, and intangibles 20,621 24,745
The above statement should be read in conjunction with the accompanying notes
58 AUSTRALIAN HEARING ANNUAL REPORT 2003–04
The above statement should be read in conjunction with the accompanying notes
FINANCIAL STATEMENTS 59

10d ANALYSIS OF PROPERTY, PLANT AND EQUIPMENT
Movement summary 2003/04 for all assets irrespective of valuation basis.
Buildings—
Buildings on Leasehold Computer Plant and
Land Freehold Land Improvements Software Equipment Total
Item $000’s $000’s $000’s $000’s $000’s $000’s
As at 1 July 2003
Gross book value 350 520 12,458 11,279 23,350 47,957
Accumulated
depreciation/
amortisation – (143) (7,492) (2,264) (13,313) (23,212)
Net book value 350 377 4,966 9,015 10,037 24,745
Transition to fair value – – (477) – (771) (1,248)
Additions
by purchase – – 1,313 426 493 2,232
Net revaluation
increment/(decrement) – – 424 – 449 873
Depreciation/
amortisation expense – (13) (1,790) (1,840) (2,034) (5,677)
Written down value
of disposals – – (79) – (225) (304)
As at June 2004
Gross book value 350 520 4,357 11,705 7,949 24,881
Accumulated
depreciation/
amortisation – (156) – (4,104) – (4,260)
10e SUMMARY OF BALANCES OF ASSETS AT VALUATION AS AT 30 JUNE 2004
Buildings—
Buildings on Leasehold Plant and
Land Freehold Land Improvements Equipment Total
Item $000’s $000’s $000’s $000’s $000’s
Gross value as at
30 June 2004 350 520 4,357 7,949 13,176
Accumulated
depreciation/
amortisation – (156) – – (156)
Net book value
as at 30 June 2004 350 364 4,357 7,949 13,020
Gross value at
30 June 2003 350 520 10,372 18,717 29,959
Accumulated
depreciation/
amortisation – (143) (7,335) (12,524) (20,002)
Net book value
as at 30 June 2003 350 377 3,037 6,193 9,957
10f TAX ASSETS
2004 2003
$000’s
$000’s
Future income tax benefit 636 182
Net book value 350 364 4,357 7,601 7,949 20,621
The above statement should be read in conjunction with the accompanying notes
The above statement should be read in conjunction with the accompanying notes
60 AUSTRALIAN HEARING ANNUAL REPORT 2003–04
FINANCIAL STATEMENTS 61

NOTE 11 PROVISIONS AND PAYABLES
CURRENT PAYABLES:
2004 2003
Note $000’s $000’s
11a Suppliers
Trade creditors and accrued expenses 6,853 5,971
11b Maintenance and hearing services card
received in advance 12,034 11,805
11c Income tax equivalent payable 1,955 –
11d Other
Dividend payable to owners 3,387 815
Total payables 24,229 18,591
CURRENT PROVISIONS:
11e Employee benefits
11g
Salaries and wages 1,322 1,002
Leave 3,304 2,891
Payroll tax 555 159
Workers compensation 70 14
Superannuation on entitlements 595 675
Total current employee benefits
liability and related on-costs 5,846 4,741
Total current provisions and payables 30,075 23,332
NON CURRENT PROVISIONS AND PAYABLES:
11f Employee benefits
11g
Leave 10,254 10,251
Payroll Tax 258 563
Workers compensation 33 49
Superannuation on entitlements 399 –
Total non-current employee benefits
liability and related on costs 10,944 10,863
Total non current provisions and payables 10,944 10,863
11g Summary of employee benefits liability
Salaries and wages 1,322 1,002
Leave 13,558 13,142
Superannuation on entitlements 994 675
Aggregate employee entitlement liability 15,874 14,819
Payroll tax 813 722
Workers compensation 103 63
Aggregate employee benefits liability and
related on costs 16,790 15,604
NOTE 12 EQUITY
Accumulated
TOTAL
Reserves Results Equity
$000’s $000’s $000’s
Balance 1 July 2003 1,535 6,594 8,129
Surplus/(deficit) 2004 5,643 5,643
Net revaluation increment/(decrement) (266) (266)
Dividend equivalent (3,387) (3,387)
Decrease in accumulated results on
transition to fair value AASB1041 Revaluation
of non-current assets – (109) (109)
Balance 30 June 2004 1,269 8,741 10,010
Balance 1 July 2002 1,535 9,910 11,445
Surplus/(deficit) 2003 – (1,488) (1,488)
Decrease in accumulated results on
application of transitional provisions
of AASB 1028 Employee Benefits – (1,828) (1,828)
Balance 30 June 2003 1,535 6,594 8,129
As a significant business entity Australian Hearing complies with competitive neutrality (CN)
principles. This involves a requirement to achieve a commercial rate of return and make dividend
payments to the Government. The board of directors of Australian Hearing has resolved to pay
a dividend equivalent representing 60% of net profits after income tax equivalent.
NOTE 13 CASH FLOW RECONCILIATION
Reconciliation of operating results with net cash flows from operating activities
2004 2003
Note $000’s $000’s
Operating profit (loss) after tax 12 5,643 (1,488)
Depreciation and amortisation
of property, plant and equipment 6c 5,676 4,194
Loss on disposal of non current assets 6e 285 60
Net write down of non-current assets 6d – 83
Increase (decrease) in tax payable 9d, 11c 2,919 (1,572)
(Increase) decrease in future income tax benefit 10f (454) 105
Changes in assets and liabilities:
(Increase) decrease in current receivables 9a (2,419) 1,269
(Increase) decrease in current inventories 9b 630 353
(Increase) decrease in other current assets 9c, e 1,322 2,281
Increase (decrease) in liabilities to suppliers 11a, b 1,111 41
Increase (decrease) in other current provisions 11e, 12 1,105 (545)
Increase (decrease) in other non-current provisions 11f 81 1,019
Net cash from operating activities 15,899 5,800
The above statement should be read in conjunction with the accompanying notes
62 AUSTRALIAN HEARING ANNUAL REPORT 2003–04
The above statement should be read in conjunction with the accompanying notes
FINANCIAL STATEMENTS 63

NOTE 14 BOARD MEMBERS’ REMUNERATION
Emoluments and benefits received or due and receivable by the directors, including the managing
director of Australian Hearing fell within the following bands:
2004 2003
$10,000 – $19,999 – 1
$20,000 – $29,999 3 2
$30,000 – $39,999 1 1
$50,000 – $59,999 1 1
$110,000 – $119,999 – 1
$260,000 – $269,999 – 1
$300,000 – $309,999 1 –
Remuneration includes wages and salaries, accrued leave, performance pay, accrued
superannuation, motor vehicle allowance and fringe benefits tax. Remuneration for board
members is determined by the Remuneration Tribunal.
Superannuation payable for directors and the managing director for 2003/04 totalled
$42,247 (2002/03 $43,677).
NOTE 15 RELATED PARTY DISCLOSURE
The directors during the financial year were;
Name Position Appointed Retired
Shepherd M Chairman 14/04/97
O’Brien T Director 28/08/00 14/11/03
Harris J Director 29/11/00 14/11/03
Rickards F Director 24/06/02
Batchelor M Director 24/06/02
Green A Managing Director 23/10/02
There were no other related party transactions apart from remuneration disclosed in Note 14.
NOTE 17 AUDITOR’S REMUNERATION
The Australian National Audit Office (ANAO) advised that the fees for the audit of the financial
statement for the 2003/04 financial year will be $62,000 (2002/03 $55,000).
No other services were provided by the ANAO during the reporting period.
NOTE 18 SUPERANNUATION
Australian Hearing has paid to the Commonwealth Superannuation Scheme (CSS) and the
Public Sector Superannuation Scheme (PSS) a contribution to discharge its accruing liability
for superannuation.
The CSS provides a pension plus refund of contributions and interest benefit, compared with
the PSS which is a defined benefit scheme based on a multiple of final salary.
In 2003/04 the contribution rate for the CSS was 25.7% (2002/03 19.6%) and for the PSS the
rate was 12.1% (2002/03 11.4%). Contributions totalled $4,801,103 (2002/03 $3,496,478).
In 2003/04 contributions of $1,291,432 (2002/03 $1,224,059) were made to comply with the
Superannuation Guarantee (Administration) Act 1992, and the Superannuation (Productivity
Benefit) Act 1988.
NOTE 19 INSURANCE
A range of insurance policies are maintained by Australian Hearing. They include:
• industrial special risks and business interruption
• public and products liability insurance
• professional indemnity Insurance
• workers compensation insurance through Comcare Australia
• marine in transit insurance
• corporate travel insurance
• voluntary workers personal accident
• directors and officers liability
NOTE 16 REMUNERATION OF OFFICERS
Income received or due and receivable by officers of Australian Hearing during the financial year
totalled $1,273,459 (2002/03 $877,665). The number of executives included in this figure is shown
below in the relevant income band:
2004 2003
$120,000 – $129,999 – 2
$130,000 – $139,999 – 2
$140,000 – $149,999 2 1
$150,000 – $159,999 1 –
$160,000 – $169,999 2 –
$210,000 – $219,999 – 1
$220,000 – $229,999 1 # –
$280,000 – $289,999 1 # –
The officers’ remuneration includes amounts paid to senior officers concerned with or taking part
in the management of Australian Hearing during the financial year except the managing director.
Details in relation to the managing director have been incorporated into Note 14—Board Members’
Remuneration.
Remuneration includes wages and salaries, accrued leave, performance pay, accrued
superannuation, motor vehicle allowance and fringe benefits tax.
# Includes redundancy/termination benefit payments during the year.
The above statement should be read in conjunction with the accompanying notes
64 AUSTRALIAN HEARING ANNUAL REPORT 2003–04
The above statement should be read in conjunction with the accompanying notes
FINANCIAL STATEMENTS 65

NOTE 20 FINANCIAL INSTRUMENTS
Floating
Non Interest
Interest Rate Bearing TOTAL
Financial Instruments Note $000’s $000’s $000’s
FINANCIAL ASSETS (RECOGNISED)
2004 2003 2004 2003 2004 2003
Cash at bank 917 3,068 917 3,068
Cash on hand 21 43 21 43
Bank bills 12,124 12,124 0
Deposits at call 3,008 86 3,008 86
Receivables for goods
and services 9a 5,264 3,205 5,264 3,205
Total financial assets
recognised 16,049 3,154 5,285 3,248 21,334 6,402
Total assets 51,029 42,324
Financial liabilities
(recognised)
Trade creditors 11a 6,853 5,971 6,853 5,971
Total financial liabilities
recognised 6,853 5,971 6,853 5,971
Total liabilities 41,019 34,195
All financial instruments are current (i.e. less than 1 year to maturity). Refer to Note 21 for average
interest rates.
NOTE 21 FINANCIAL INSTRUMENT POLICIES
Accounting Policies,
Recognition and
Nature of
Financial Instrument Note Measurement Underlying Instrument
Financial assets
Financial assets are recognised when control over future
economic benefits is established and the amount of the
benefit can be reliably measured.
Cash 13 Deposits are recognised at their Temporary surplus funds are
nominal amounts. Interest is placed on deposits at call or
credited to revenue as it accrues. bank bills with maturities of
less than or equal to 90 days.
The average interest rate
earned on cash at bank for
2003/04 was 4.25% (2002/03
3.7%) and on deposits and
bank bills 5.3% (2002/03 4.5%).
Receivables for goods 9a Receivables are recognised Credit terms are 14 days for
and services at the nominal amounts due voucher claims and 30 days
less any provision for bad and for other debtors.
doubtful debts. Provisions are
made when the collection of
the debt is less rather than
more likely.
Financial liabilities
Financial liabilities are recognised when a present obligation
to another party is entered into and the amount of the liability
can be reliably measured.
Trade creditors 11a Creditors and accruals are Settlement is made between
recognised at their nominal 7 to 30 days.
amounts, being the amount
at which the liabilities will
be settled. Liabilities are
recognised to the extent that
the goods or services have
been received (irrespective
of having been invoiced).
NOTE 22a NET FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIES
The net fair value of Australian Hearing’s financial assets and liabilities equate to the carrying
amounts recorded in the Statement of Financial Position.
NOTE 22b CREDIT RISK EXPOSURE
Australian Hearing’s maximum exposure to credit risk at reporting date in relation to each class
of recognised financial assets is the carrying amount of those assets as indicated in the Statement
of Financial Position.
A significant part of Australian Hearing’s credit exposure is concentrated with the Office of
Hearing Services.
All figures for credit exposure referred to do not take into account the value of any collateral
or other security.
The above statement should be read in conjunction with the accompanying notes
66 AUSTRALIAN HEARING ANNUAL REPORT 2003–04
The above statement should be read in conjunction with the accompanying notes
FINANCIAL STATEMENTS 67

Appendices
APPENDIX 1: ENABLING LEGISLATION
APPENDIX 2: BOARD ATTENDANCE
APPENDIX 3: AUDIT COMMITTEE
APPENDIX 4:
AUDIOLOGICAL SERVICES PROVIDED
APPENDIX 5: CLIENT ELIGIBILITY
APPENDIX 6: HEARING AIDS FITTED
APPENDIX 7: COMMITTEES
APPENDIX 8: STAFFING OVERVIEW
APPENDIX 9: CONSULTANTS
APPENDIX 10: ADVERTISING
APPENDIX 11: FREEDOM OF INFORMATION
APPENDIX 12:
PROGRAM PERFORMANCE REPORTING
APPENDIX 13:
ENVIRONMENTAL PERFORMANCE
APPENDIX 14: COMMONWEALTH DISABILITY
STRATEGY
APPENDIX 1. ENABLING LEGISLATION
For the period covered by this report, the Minister for Health and Ageing
and subsequently the Minister for Ageing has administered the Authority
in accordance with the provisions of the Australian Hearing Services Act 1991.
The object of Australian Hearing Services Act 1991 is to establish an authority
to be known as Australian Hearing Services, and for related purposes.
The functions of the Authority are defined in section 8 of the Act as follows:
(a) to provide hearing services to voucher-holders in accordance with an
agreement entered into by the Authority under Part 3 of the Hearing Services
Administration Act 1997;
(b) to provide declared hearing services to young Australians; referred Comcare
clients; referred Commonwealth employees; and designated persons;
(c) to carry out research and development (including co-operative research
with other institutions) into:
(i) assessment of hearing;
(ii) hearing aids and procedures for fitting hearing aids;
(iii) hearing rehabilitation;
(iv) hearing loss prevention; and
(v) the effects of noise on the community
(d) to enter into arrangements for research, design and development
of hearing services;
(e) to enter into arrangements for supply of hearing services;
(f) to provide, as appropriate, for the training and education of persons
or bodies (including overseas bodies) providing hearing services;
(g) to provide advice on, and to conduct public education programs
in relation to, hearing services provided by the Authority;
(h) to develop standards in relation to noise levels in the community that are
acceptable in connection with the prevention of hearing loss;
(i) to provide consultancy services relating to any of the matters referred
to in this subsection;
(j) to promote the establishment of export markets for Australian
hearing services;
(k) to operate special acoustic facilities for acoustic measurement and research;
(l) such other functions as are conferred on the Authority by this Act;
(m) any functions incidental to any of the foregoing functions.
68 AUSTRALIAN HEARING ANNUAL REPORT 2003–04 APPENDICES 69

APPENDIX 2. BOARD ATTENDANCE
Directors of the board
Mr Michael Shepherd Chairman 8/8
Mr Michael Batchelor Director 8/8
Professor Field Rickards Director 8/8
Miss Jennifer Harris Director 4/4
Mr Tom O’Brien Director 4/4
Ms Anthea Green Managing Director 8/8
Meetings attended by directors
Mr O’Brien and Miss Harris retired on 14 November 2003 but continued as observers for the
remainder of the year.
APPENDIX 3. AUDIT COMMITTEE
Audit & Risk Management Committee
Meetings attended by directors
Mr Michael Shepherd Chairman 4/4 Commenced 15 November 2003
Mr Michael Batchelor Director 4/4
Mr Tom O’Brien Chairman 3/3 Retired 14 November 2003
Ms Anthea Green Director 4/4
The number of children assessed has decreased slightly as we focus on providing services to
children with permanent or long term hearing loss rather than screening or medical audiology.
APPENDIX 4. AUDIOLOGICAL SERVICES PROVIDED
2002 2003 2004
Children 48,787 47,157 45,993
Pensioners and Veterans 257,324 260,915 280,065
Others 8,913 9,720 9,580
APPENDIX 5. CLIENT ELIGIBILITY
Those eligible for services from Australian Hearing are defined in section 8 of the
Australian Hearing Services Act 1991 and section 13 of the Hearing Services
Administration Act 1997. These provisions cover persons who:
• hold a Commonwealth-issued Health Care Card because they receive sickness
allowance (and their dependants); or
• hold a Commonwealth-issued Pensioner Concession Card (and their
dependants); or
• hold a Commonwealth-issued Repatriation Health Card, where the card is
expressed to be either for all conditions or for a condition that involves hearing
loss (and their dependants); or
• are Australian Defence Forces personnel; or
• are referred from Commonwealth Rehabilitation Services (CRS); or
• are Australian residents under 21 years of age; or
• are COMCARE clients.
APPENDIX 6. HEARING AIDS FITTED
2002 2003 2004
Total 93,810 96,607 109,867
APPENDIX 7. COMMITTEES
NAL Research Committee
Prof Field Rickards (Chair)
Dr Jenny Rosen
Prof Neville Fletcher
Mr Tony Kingdon
Mr Michael Shepherd
Ms Anthea Green
Dr Harvey Dillon
Ms Sharan Westcott (by invitation)
APPENDIX 8. STAFFING OVERVIEW
State/Territory Total (FTE) Males (FTE) Females (FTE)
NSW/ACT 333 119 214
VIC 178 35 143
SA 39 10 29
TAS 23 5 18
QLD 129 24 105
NT 7 1 6
WA 39 11 28
Totals 748 205 543
Australian Hearing Human
Research Ethics Committee
Dr Keith Joseph (Chair)
Mr Geoff Stewart
Prof Field Rickards
Prof Di Yerbury
Mr Richard Brading
Rev Philip Bradford
Mr Greg Birtles
This full time equivalent (FTE) total of 748 represents a headcount of
875 employees. These employees are categorised as follows:
• 15.96% were temporary employees (full-time and part-time);
• 21.78% were part-time staff (permanent and temporary); and
• 7.52% were inoperative.
APPENDIX 9. CONSULTANTS
Consultant & engagement
$ Cost
Batten Consulting
IT network analysis & performance tuning 10,500
Compaq Computer
SMS-de-installation 21,750
Contendo NZ Limited
Scientific consulting services 5,285
Deloitte Touche
Probity services
Internal audit 147,695
Price Waterhouse Coopers
Internal audit 5,500
EPB Consulting
IT strategic plan / IT structural review 67,900
IBM Business Consulting
Oracle financial analyser
ABC project CSO costing & modelling 186,660
70 AUSTRALIAN HEARING ANNUAL REPORT 2003–04 APPENDICES 71

Consultant & engagement
$ Cost
Interiors Australia
Updating fitout manual 3,500
Jenny Fraumano and Associates
Industrial relations consultant for:
– Certified agreement
– Classification review
– Industrial dispute & IRC hearings 103,110
NSW Department of Commerce
Tender management processes 48,000
Pacific Road Corporate
Corporate plan 2003/04 10,000
Panjuteroy P/L
IT help desk review
Support & activity review
Support & centre planning
Client streaming project 75,200
Red Rock
IT—AHCIS support
IT—AHCIS enhancement
IT—Oracle financial support 1,235,926
TOTAL 1,921,026
APPENDIX 10. ADVERTISING
Advertising – including directories $929,717
APPENDIX 11. FREEDOM OF INFORMATION
During 2003–04, there were no requests received for access to documents
under provisions of the Freedom of Information Act 1982 (‘the FOI Act’).
Inquiries on freedom of information matters, including requests for access
to documents, may be directed to:
Ron Oong
Australian Hearing Tel: (02) 9412 6800
126 Greville Street Fax: (02) 9413 1571
Chatswood NSW 2067 TTY: (02) 9412 6802
directed to the contact officer above. In general terms these documents cover
administrative matters, service delivery procedures and quality assurance
standards.
APPENDIX 12. PROGRAM PERFORMANCE REPORTING
Australian Hearing activities for 2003–04 were reported to Government within
performance reporting for the Health and Ageing Portfolio, Outcome 6—Hearing
Services.
APPENDIX 13. ENVIRONMENTAL PERFORMANCE
Australian Hearing’s activities do not have significant ecological sustainable
development (ESD) implications. However, in the areas of procurement generally,
battery contracts, IT equipment purchases and recycling of parts, materials
used in Hearing Centre fitouts, energy use, recycling of photocopier and printer
cartridges, and waste paper recycling, the Authority gives due regard to ecological
sustainability including business planning and decision making. Currently
Australian Hearing is developing and will be implementing an environmental
management system.
APPENDIX 14. COMMONWEALTH DISABILITY STRATEGY
All Australian Hearing activities honour the spirit and requirements
of the Disability Discrimination Act 1992. Within the reporting framework
recommended by the Commonwealth Disability strategy Australian Hearing’s
charter include roles as employer and service provider, but not as purchaser,
policy adviser or regulator.
In these capacities Australian Hearing operates quality improvement and
assurance mechanisms, a client service charter, human resources policies
and complaints/grievance procedures that acknowledge and respond to
issues important to people with disabilities.
Requests to access documents are subject to a $30 application fee. This should
be forwarded with the written application.
If an applicant is dissatisfied with a decision made under the FOI Act, he or she
may apply to the managing director, seeking an internal review. A request to
review a decision is subject to a $40 application fee.
If access is approved copies of the documents will be provided on receipt of any
charges that apply. Alternatively, applicants may arrange to inspect documents at
a State or Territory office, if the documents lend themselves to this form of access.
Requests for copies of documents that Australian Hearing has made available
in accordance with s.9 of the Freedom of Information Act 1982 may also be
72 AUSTRALIAN HEARING ANNUAL REPORT 2003–04 APPENDICES 73

Note:
permanent
centres
indicated
by bold face
Hearing centre network
PERMANENT AND
VISITING CENTRES
ACT
Canberra
NEW SOUTH
WALES
Albury
Ballina
Bankstown Square
Batemans Bay
Bathurst
Bega
Blacktown
Bourke
Bowral
Broken Hill
Campbelltown
Castle Hill
Cessnock
Chatswood
Chester Hill
Cobar
Coffs Harbour
Cooma
Coonabarabran
Cootamundra
Corowa
Cowra
Dee Why
Deniliquin
Dubbo
Eastlakes
Edgecliff
Erina
Forbes
Forster
Gosford
Goulburn
Grafton
Griffith
Hornsby
Hurstville
Kempsey
Kiama
Kincumber
Lightning Ridge
Lismore
Liverpool
Maitland
Milton
Miranda
Mowill Village
Mt Druitt
Mudgee
Nambucca Heads
Narellan
Narooma
Narrabri
Narrandera
Nelson Bay
Newcastle
North Rocks School
Nowra
Orange
Parkes
Parramatta
Penrith
Port Macquarie
Revesby
Rooty Hills
Singleton
Springwood
Strathfield
Sydney
Tahmoor
Tamworth
Taree
Temora
Tenterfield
The Entrance
Toronto
Toukley
Tumut
Turramurra
Tweed Heads
Ulladulla
Wagga Wagga
Walgett
West Ryde
Windsor
Wollongong
Woy Woy
Young
NORTHERN
TERRITORY
Alice Springs
Darwin
Katherine
Tennant Creek
QUEENSLAND
Aitkenvale
Aspley
Atherton
Ayr
Beenleigh
Bowen
Bribie Island
Brisbane
Bundaberg
Caboolture
Cairns
Caloundra
Cape Communities
Charleville
Charters Towers
Cherbourg
Chinchilla
Cleveland
Cooktown
Dalby
Emerald
Esk
Forest Lake
Gayndah
Gladstone
Goodna
Gympie
Hervey Bay
Indooroopilly
Ingham
Innisfail
Ipswich
Kingaroy
Laidley
Logan Central
Longreach
Mackay
Mareeba
Maroochydore
Maryborough
Monto
Mt Gravatt
Mt Isa
Noosa
Proserpine
Redcliffe
Rockhampton
Southport
Stanthorpe
Strathpine
Toowoomba
Townsville
Warwick
Woorabinda
Yeppoon
SOUTH AUSTRALIA
Adelaide
Barossa Valley
Beulah Park
Daw
Elizabeth
Loxton
Marion
Modbury
Mount Barker
Mt Gambier
Murray Bridge
Noarlunga
Port Augusta
Port Lincoln
Port Pirie
Prospect
Renmark
Salisbury
West Lakes
Whyalla
TASMANIA
Burnie
Devonport
Flinders Island
Glenorchy
Hobart
Huonville
King Island
Kingston
Launceston
New Norfolk
Queenstown
Rosny
Scottsdale
Sorell
St Helens
St Marys
VICTORIA
Apollo Bay
Ararat
Bairnsdale
Ballarat
Baxter
Bayswater
Belmont
Bendigo
Bentleigh East
Berwick
Box Hill
Brighton
Broadmeadows
Bundoora
Castlemaine
Caulfield
Chelsea
Cheltenham
Coburg
Colac Hospital
Cowes
Cranbourne
Croydon
Dandenong
Daylesford
Early Education Program
Eltham
Fairfield
Ferntree Gully
Footscray
Forest Hill
Frankston
Geelong
Hamilton
Hastings
Hawthorn
Heidleberg West
Horsham
Inverloch
Ivanhoe
Kerang
Kingston
Knox
Lake Park
Lilydale
Maryborough
Melbourne
Melton
Mildura
MLC
Moe
Moonee Ponds
Mornington
Morwell
Oakleigh
Pakenham
Port Fairy
Portland
Prahran
Preston
Reservoir
Rosanna
Rosebud
Rye
Sale
Shepparton
Springvale
Sunbury
Sunshine
Swan Hill
The Village Glen
Villa Maria
Wangaratta
Warragul
Warrnambool
Wembley Chambers
Werribee
Wonthaggi
WESTERN
AUSTRALIA
Afme Bullcreek
Albany
Armadale
Bassendean
Bentley
Bunbury
Busselton
Cannington
Derby
Dianella
Duncraig
Esperance
Fremantle
Geraldton
Hollywood Village
Joondalup
Kalamunda
Kalgoorlie
Karratha
Karrinyup
Kelmscott
Mandurah
Merriwa
Midland
Mirrabooka
Morley
Mosman Park
Perth
Port Hedland
Rockingham
Scarborough
Speech/Hearing Centre
Victoria Park
Warwick
ABORIGINAL AND
TORRES STRAIT
ISLANDER
COMMUNITIES/
SITES VISITED
DURING 2003–04
NORTHERN
TERRITORY
Ali Curung
Alyangula
Amata (SA)
Angurugu
Barunga
Beswick
Clyde Fenton PS
Congress ACCHS
Docker River
Ernabella (SA)
Galuwinku
(Elcho Island)
Halls Creek (WA)
Hermannsburg
Jamieson (WA)
Jilkaminggan
Kalkarindji
Kununurra (WA)
Lajamanu
Milikapiti
Mt Liebig
Mutitjulu
Nguiu
Nhulunbuy
Papunya
Peppimenarti
Pilingimpi (Garden Pt)
Pipalyatjarra (SA)
Tennant Creek
Tjukurla (WA)
Wadeye (Pt. Keats)
Wanarn (WA)
Warakurna (WA)
Warburton (WA)
Warmun (Turkey Creek)
(WA)
Wingellina (WA)
Yirrkala
WESTERN
AUSTRALIA
Broome AMS
Derbarl Yerrigan
Derby
Fitzroy Crossing
Jigalong
Roebourne
South Hedland
Yandeyarra
SOUTH AUSTRALIA
Carlton PS
Ceduna/Koonibba
Coober Pedy
Indulkana
Kaurna Plains
Pre-School
Nunkuwarrin Yunti
Oak Valley
Winke
Yalata
VICTORIA
Bairnsdale Co-Op
Ballarat Co-Op
Bunurong
Dareton ACCHS
Framlingham Co-Op
Gunditjmara Co-Op
Mildura ACCHS
Moogji Co-Op
Morwell (Kode)
Nowa Nowa PS
Ramahyuck (Sale)
Robinvale ACCHS
Swan Hill Co-Op
Victorian Aboriginal
Health Service
Yarra Valley ACCHS
KEY
NEW SOUTH WALES
Awabakal ACCHS
Awabakal Pre-School
Bingara
Biripi AMS
Bourke Pre-School
Daruk AMS
Durri AMS
Illawarra AMS
Kirinari
Kulai Pre-School
Menindee
Nowra AMS
Nowra East PS
Redfern AMS
Riverina Medical
& Dental AMS
Tharawal AMS
Weimija
Wentworth
Wunambiri Pre-School
QUEENSLAND
ACCHS Aboriginal Community
Controlled Health Service
AMS Aboriginal Medical Service
Co-op Co-operative
PS Primary School
Aurukun
Bamaga
Cairns
Charleville AMS
Cherbourg
Chillagoe PS
Coen
Goondir
Hopevale
Kambu
Lockhart River
Mareeba PS
Murray Upper
Napranum
Normanton
Palm Island
Pormpurraw
Ravenshoe
Thursday Island
Weipa
Woolloonggabba ACCHS
Woorabinda
Wujal Wujal
Yarrabah
Yulu-Burri-Ba
74 AUSTRALIAN HEARING ANNUAL REPORT 2003–04 HEARING CENTRE NETWORK 75

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