Full Report - Department of Housing - The Western Australian ...

(
Ministry of)
Housing
Annual Report
Click for
contents
THE GOVERNMENT OF
W ESTER N
A USTR ALIA

STATEMENT OF COMPLIANCE
STATE HOUSING COMMISSION
Hon Dr Kim Hames MLA
MINISTER FOR HOUSING
In accordance with section 66 of the Financial
Administration and Audit Act 1985, we hereby
submit for your information and presentation to
Parliament, the Annual Report of the State Housing
Commission for the financial year ending June 30,
2000.
The report has been prepared in accordance with the
provisions of the Financial Administration and Audit
Act 1985 and incorporates special reporting
requirements imposed on the State Housing
Commission by the:
Public Sector Management Act 1994
Disability Services Act 1993
Equal Opportunity Act 1984
Electoral Act 1907
Lloyd F Guthrey
Chairman of Commissioners
Greg Joyce
Managing Director
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
Contents
Strategic Vision 2
About the Ministry of Housing 2
Board of Commissioners 4
Ministry Executive 6
Organisational Structure 7
New Office of Housing Policy 8
Managing Director’s Overview 9
Highlights 10
Community Activities 12
Corporate Governance 14
Home Ownership 20
Land and Development 30
Rental Housing 46
Housing Procurement 54
Community Housing 62
Bond Assistance 68
Aboriginal Housing 72
Business Strategies 84
Communications and Marketing 95
Reporting Requirements 97
Performance Indicators 104
Financial Statements 117
Financial Estimates 168
Statistical Summary 170
1

Strategic Vision
2
V ISION
To be globally respected as an innovative leader in
the provision of quality housing services.
M ISSION
To provide access to housing, land and finance that
meet the needs of the community of Western
Australia.
R OLE
To provide housing for Western Australians who
cannot otherwise afford their own homes by
arranging affordable home finance, rental housing
and land. The Ministry also builds homes, develops
land and undertakes joint venture projects with
other housing providers. Its programs are aimed at
low income home buyers and renters, disadvantaged
groups and people with special housing needs.
ABOUT THE
MINISTRY OF HOUSING
The “Ministry of Housing” is the name under which
the State Housing Commission operates. The
Ministry provides an integrated state housing service
in Western Australia for a client base which stretches
the length and breadth of the State.
The Ministry’s purpose is to provide housing, land
and finance to meet the housing needs of the people
of Western Australia. Our focus is on people with
low to moderate incomes, and our customers range
from those in subsidised rental accommodation to
first home buyers and people with special housing
needs.
The Ministry “umbrella” covers:
• Keystart home loan schemes
• Landstart, for the development and sale of land in
Western Australia
• Homeswest, including rental services,
Community Housing and Bond Assistance
• Aboriginal Housing and Infrastructure
• The Office of Housing Policy.
There are legislative changes being proposed to
include currently separate legal entities such as
Government Employees Housing Authority (GEHA)
and the Country Housing Authority. These
authorities currently produce their own Annual
Reports. A number of structural and organisational
changes have occurred throughout the year to
streamline services and ensure a better balance
between the needs of the private housing industry
and the provision of affordable housing and land.
Currently, separate legal authorities are liaising with
the Ministry in preparation for the consolidation of
all Agencies into the Ministry of Housing.

T HE O RGANISATION
The Ministry of Housing is largely self-funding, and
also receives grants from the Commonwealth and
State Governments.
The Ministry, through Keystart, manages a range of
successful home ownership schemes to help people
on low to moderate incomes make the transition to
owning their own home.
Landstart is a major developer and seller of land in
Western Australia, managing the “New Living”
program and also employing the joint venture
method of development.
The Ministry has a total of 38,556 properties,
consisting of 35,187 rental properties, 1440 units in
joint venture projects with other organisations, 997
properties built in remote areas for Aboriginal people,
599 properties for community groups and 333
properties for crisis accommodation.
Aboriginal Housing and Infrastructure assists
Aboriginal people with their housing needs. This
includes the provision of rental homes for Aboriginal
people, a range of counselling and support services, a
targeted home loan scheme and other construction,
housing and infrastructure initiatives.
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
Community Housing provides housing for people
who need support to live independently. This
includes seniors, people with disabilities and others
with special needs.
The Ministry offers Bond Assistance as an interest-free
loan to help people enter accommodation in the
private rental market.
The Office of Housing Policy provides independent
advice on the housing sector to the Minister, the
Board and the Managing Director of the Ministry of
Housing.
3

Board of
Commissioners
4
The Board of Commissioners comprises seven members, including six persons drawn from the
community and the Managing Director of the Ministry of Housing as an ex officio member.
The Board is accountable to the Minister for Housing
and is supported by the Ministry’s Executive Staff.
Board members - each with special skills - come
from differing backgrounds and provide best practice
governance.
LLOYD F GUTHREY
ANNE HECTOR
ROBERT BROWN
JEANICE KRAKOUER
STEVEN PROSSER
PETER UNSWORTH
GREG JOYCE

B OARD M EMBERS AT
J UNE 30, 2000
LLOYD F GUTHREY FCPA, FAICD, FAIBF
Chairman of Commissioners
Lloyd Guthrey, a banker for 44 years is also Chairman
of the Keystart group of companies, a director of the
Grain Pool of WA, Agracorp Pty Ltd and the South
West Irrigation Co-operatives. He is also a director of
the Winston Churchill Memorial Trust and the Corps
of Commissionaires (WA) and is a member of several
community and charitable organisations.
ANNE HECTOR
Deputy Chairman of Commissioners
Anne Hector was appointed to the Board of
Homeswest in 1994. She has a background in
Agricultural Business and Community Service.
ROBERT BROWN
Commissioner
Robert Brown is a director of several listed and
private companies and has been associated with the
provision of housing finance for more than 25 years.
He has extensive knowledge of land development and
the building industry generally.
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
JEANICE KRAKOUER
Commissioner
Jeanice Krakouer is currently Housing Manager with
the Southern Aboriginal Corporation in Albany, and
has held this position since 1993. She is also
Chairperson of the Aboriginal Housing Board, and
has wide experience and knowledge of the housing
industry, particularly Aboriginal housing issues.
STEVEN PROSSER
Commissioner
Steven Prosser has substantial experience in the
housing industry. He is a registered building
contractor and company director with interests in
commercial development.
PETER UNSWORTH
Commissioner
Peter Unsworth holds a Bachelor of Commerce
degree and is a member of the Institute of Chartered
Accountants. As well as his directorship with
Paterson Ord Minett, he is a director of Gold
Corporation and Perilya Mines.
GREG JOYCE BA LL.B Bjuris
Managing Director
Greg Joyce is the Managing Director of the Ministry
of Housing. He has extensive experience in
Government housing, extending from land
development through housing construction and
rental, and has played a key role in the restructure of
Homeswest into the new Ministry of Housing.
5

Ministry Executive
6
GREG JOYCE BA LL.B Bjuris
Managing Director
Greg Joyce joined Homeswest in 1973 and was
appointed Executive Director in 1992. He was
appointed Managing Director of the new Ministry of
Housing in June 1999.
BOB THOMAS Dip PubAdmin
General Manager Homeswest
Bob Thomas joined Homeswest in 1966 and has
extensive experience in public housing, particularly
in regional operations, community housing and
property/tenancy management. He was appointed to
his present position in July 1999.
BEVAN BEAVER Dip PubAdmin
Executive Director Business Strategies
Bevan Beaver joined the State Housing Commission
in February 1966. He has extensive experience in
public housing and a wide understanding of rental
operations, home ownership activities and corporate
matters. In December 1993, he was appointed
Director Corporate Services, with this role being
revised with the formation of the Ministry of Housing
to become known as Executive Director Business
Strategies.
JODY BROUN Dip Teach. B Ed, Mphil
Executive Director Aboriginal Housing and
Infrastructure
The Aboriginal Housing Directorate was created in
1994, and Jody Broun became its first director. The
formation of the Ministry of Housing changed the
position to Executive Director Aboriginal Housing
and Infrastructure. Jody Broun previously worked for
the Aboriginal Affairs Planning Authority.
JOHN COLES MBA (Fin) GRAD BUS
Executive Director Financial Services
John Coles has been with the Ministry of Housing for
14 years and was re-appointed to his present position
in 1999. His extensive public sector career includes
appointments at State Treasury, the Department of
Industrial Development and the Public Service Board.
LUIGI D’ALESSANDRO B Arch
Executive Director Landstart
Luigi D’Alessandro is an architect and registered
builder. He joined Homeswest from the private
sector in 1988 and was appointed to the position of
Director Housing Production in 1993, and then
Executive Director Landstart in 1999.
KERRY FIJAC B.Com, CPA
State Director Rental Services
Kerry Fijac joined the Ministry of Housing in 1989
after working as an auditor in several other
government agencies. She was appointed to her
present position in December 1999. Kerry’s other
experience within the Ministry includes managerial
roles in the Financial Services Directorate and the
Landstart Business Unit.

ORGANISATIONAL STRUCTURE
BUSINESS STRATEGIES Corporate Development
Human Resources
Bevan Beaver Information Services
Executive Director Office Services & Contracts
Securities & Conveyancing
HOMESWEST Community Housing
Bond Assistance
Bob Thomas Housing Procurement
General Manager
RENTAL SERVICES Maintenance Services
Rental Operations
Kerry Fijac Regional Offices (9)
Executive Director Branches (18)
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
LANDSTART New Living
Programming & Land Supply
Luigi D’Alessandro Property Development & Sales
Executive Director Strategic Land Planning
FINANCIAL MANAGEMENT SERVICES Terminating Building Societies & Keystart
Home Ownership
John Coles Financial Budgeting & Planning
Executive Director Financial Accounting
Debt & Risk Management
Home Finance
Financial Technology & Reporting
ABORIGINAL HOUSING INFRASTRUCTURE Aboriginal Programs
Community Construction
Jody Broun Community Strategy Investment
Executive Director Policy & Planning
Support Programs
Other units reporting to the Managing Director
• Communications and Marketing
• Homeswest Appeals Mechanism
• Management Review & Audit
• Office of Housing Policy
7

New Office of
Housing Policy
8
Anne Arnold
Director Office of Housing Policy
Anne Arnold joined the Ministry of Housing
in November 1999. Anne is foundation
Director of the Office, and has wide
experience in the property industry and in
land use planning. Anne was formerly
Deputy Chairman of the WA Planning
Commission and Executive Director of the
Urban Development Institute of Australia (WA
Division).
An initiative this year was the establishment of an
Office of Housing Policy to provide independent
advice on the housing sector to the Minister, the
Board and the Managing Director of the Ministry of
Housing.
The Office liaises with community and housing
industry interest groups to ensure the Ministry is in
touch with the views of stakeholders, and provides
the Housing Minister with feedback on a wide range
of issues across the entire housing industry in WA.
The Office of Housing Policy, employing a small
number of key staff, develops policy proposals and
provides analysis and advice on issues relevant to
housing. The Office also provides executive support
for the Housing Advisory Committee and the
Housing Industry Forecasting Group. The HIFG is a
new independent joint housing industry and
government body, which was established in April
2000 in response to widespread demand for Statebased
housing forecasts.
In the coming year, the Office of Policy will embark
on a major initiative to develop a housing strategy for
Western Australia. The strategy, to be called Housing
2029, will take up to two years to develop and will
involve detailed consultation with stakeholders in the
community, government and industry.

M ANAGING D IRECTOR’ S O VERVIEW
1999/2000 was a dynamic year for the Ministry of
Housing with a number of milestones recorded,
including the completion of one of Western
Australia’s most successful redevelopment projects
ever.
The five-year Lockridge project has turned a suburb
once dominated by poor quality public housing flats
and an excessive crime rate, into a much sought after
residential area with significantly reduced crime and a
delightful sense of community.
The Lockridge project, which was completed in June
this year, was one of the first redevelopment projects
to commence under the “New Living” banner, and
has been a role model for other projects now
underway. The New Living program is progressively
dismantling the old public housing estates which had
developed over many decades in parts of Perth and
country areas. When the program began, more than
half of the properties in Lockridge were owned by
Homeswest, and this has now been reduced to 16 per
cent.
Landstart’s New Living projects are strategically
important in achieving the Ministry’s vision for public
housing to become self-effacing and merge within the
general community. Eight New Living projects are
now underway in metropolitan Perth and a further
nine in country areas, affecting over 10,000
properties - more than a quarter of all public rental
homes. As the projects mature over the next few
years, and a better balance of public and private
housing is achieved, the stigma often associated with
public housing will disappear. I would like to take
this opportunity to thank all staff involved in the
Lockridge project, and also the private sector project
manager, Voran Consultants.
Another milestone this year occurred in home
ownership, with Keystart passing the $3 billion mark
for the value of home loans approved since the
scheme commenced in 1989. The Ministry has
continued to place great emphasis on providing
people on low and moderate incomes with access to
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
affordable home finance so they can realise their
dream of home ownership. This not only provides a
huge benefit for those individuals, but also reduces
the community’s collective dependence on public
housing. The Ministry achieved many successes
during the year, including a strong response from
Aboriginal people and people with disabilities
successfully accessing our tailored home loan
schemes.
A number of Ministry programs targeting Aboriginal
communities were also successfully expanded this
year. The Remote Areas Essential Services Program,
which provides a vital repair and maintenance service
for power, water and wastewater systems, is now
operating in 62 communities, six more than last year.
The Management Support Program is now operating
in 34 communities, and this year trained or employed
93 Aboriginal people. In addition, several remote
communities have also begun to receive new
recreation and other facilities under the
Environmental Health Program.
Like most organisations, the Ministry this year was
also consumed by the demands of the Internet,
particularly e-business. This year saw the successful
introduction of a new web site and good progress
into establishing an e-business platform. Over time,
as the strategy unfolds, there will be opportunities for
all customers and stakeholders to do business with
the Ministry on the Internet.
I would like to thank all staff for an excellent
performance during this first year operating under
the new Ministry of Housing structure. There have
been many demands placed on staff to meet our new
service priorities, and the response has been
gratifying. The strength of the Ministry is its
employees and over this year they have responded
magnificently to such demands as Y2K, GST and the
roll out of new information technology. I would also
like to thank the Minister and the members of the
Board of Commissioners who have helped steer the
Ministry on its new course throughout the year, as
well as members of the Keystart, Landstart and
Aboriginal Housing Boards.
Greg Joyce
Managing Director
9

Highlights
10
Keystart approved 4560 home loans, and in the
process passed the $3 billion mark for the value
of loans approved since the scheme commenced
in 1989.
The Aboriginal Home Ownership Scheme
approved 48 home loans, bringing the total
approved since the scheme commenced five years
ago to 265 loans.
In the mainstream rental, Aboriginal Housing
and Community Housing Programs, construction
commenced on 1444 new dwellings, the
refurbishment of 255 dwellings and the
conversion of 49 bedsitters.
The waiting list for rental housing was reduced
by 1,447 people.
$4 million was spent on refurbishing 255 older
dwellings under the Ministry’s recently
introduced refurbishment program.
32 dwellings more than 40 years old were
replaced under the country stock replacement
program.
The first of the New Living redevelopment
projects, the five-year Lockridge program, was
completed, and various new projects in other
suburbs commenced.
455 dwellings were refurbished and sold under
the New Living program.
The Ministry continued its high rate of Aboriginal
employment, with Aboriginal staff making up
8.25 per cent of the total workforce – more than
four times the representation in the overall public
sector workforce.
Through Aboriginal Housing initiatives such as
RAESP and the Management Support Program,
employment has been created in communities for
a total of 163 Aboriginal people.
The Remote Areas Essential Services Program
(RAESP) was expanded from 56 to 62 Aboriginal
communities.
The Ministry’s Housing Programs provided 443
units for people with disabilities, including
construction of 75 new purpose built mobility
homes.
Approximately $.5 million was spent modifying
existing housing to meet the needs of people with
disabilities, including bathroom and kitchen
renovations and other access improvements.
An extensive intranet (MOHnet) service was
introduced, enabling staff to conduct much of
their internal business on-line. It has rapidly
become the central source of information and
access to internal systems.
Ministry staff attended over 15,000 hours of
training, an average of 19.25 hours per FTE.
A Disability Employment Action Plan was
developed for the employment and advancement
of people with disabilities.

Successful implementation of Balanced Scorecard
and associated performance measurement
software.
A Heads of Agreement was signed for a new joint
venture at Butler which will result in the
provision of some 6000 residential lots on the
more than 570 hectares of land owned by
Landstart and its neighbour, the Butler Land
Company.
The Dalyellup Beach joint venture commenced
sales in October 1999 and by June 30 2000, had
sold 141 lots and settled 95, an outstanding
achievement in a regional centre in slow market
conditions.
The Seacrest joint venture introduced the first
country development in which all lots are
provided with coaxial and fibre optic cable to
allow for high-speed Internet, TV services,
community Intranet, security and low-cost STD
telephone services.
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
The submission period closed on June 30 for a
new joint venture at Clarkson over 120 hectares
of Landstart land adjacent to the planned
Clarkson Railway Station and the Ocean Keys
commercial centre.
The Urban Development Institute of Australia
gave its Award for Excellence in Urban Renewal
to the New Living project at Lockridge.
The Ministry of Housing has shown an increase
of $134 million in net assets from the previous
year. This is a representation of improved
property values and new loan advances.
11

Community
Activities
12
H EAD O FFICE M USEUM
A fascinating historical display has been established
in the ground floor foyer of the Ministry’s Head
Office in East Perth. The display consists of an
Honour Board and displays of historical items.
The War Memorial Honour Board has been
developed to recognise those employees of the
Ministry of Housing (formerly the Workers Home
Board and the State Housing Commission) who
enlisted to serve in the Australian Military Forces
during times of war and conflict. Staff carried out
exhaustive enquiries with various agencies including
the RAAF, Army, Navy, the Department of Veterans
Affairs and the Vietnam Veterans Association to
collate the 46 names that appear on the roll of
honour.
The historical display also includes glass cabinets
displaying memorabilia from past years. The
cabinets include such items as the Ministry’s original
common seal and embossing machine, old house
designs and photos of old public housing including
flats, old plans, office and building equipment and
handwritten records of loans from the early 1960s.
The display also features the Will of philanthropist
Sir Charles McNess, who bequeathed a sum of
money to establish the McNess Housing Trust to
provide low-cost housing for impoverished families.
N EW T RAINING S CHEME
Aboriginal people in the Perth metropolitan area have
begun reaping the rewards of an innovative
employment scheme developed by the Ministry.
The New Living Apprenticeship Scheme now has 10
Aboriginal people working in apprenticeships in
painting, bricklaying, plastering and carpentry.
The trainees are employed by four private sector
employers – Liam Hayes Bricklaying, Plasterwise,
Swan Painting Service and Carpenter Nathan
Solomon – who answered the call from the Ministry
to participate, despite receiving no preferential
treatment in tendering for Ministry projects. The
scheme is run in conjunction with West Australian
Group Training Inc.
All Aboriginal Homeswest tenants in and around the
New Living areas were contacted by the Ministry and
invited to apply for the positions.
The Department of Training and Employment and the
Department of Productivity and Labour Relations
assisted with advice to the Ministry, and the
Commonwealth Department of Employment,
Workplace Relations and Small Business, is
subsidising the employers.

A ID FOR T IMBER W ORKERS
Timber workers in the South-West affected by the
Regional Forest Agreement were offered special
assistance to help with the consequences of local mill
closures. This included priority rental assistance for
families wanting to move to other towns to seek
employment, bond assistance for property owners
who had work elsewhere and needed private
accommodation pending the sale of their property,
assistance to restructure or refinance existing home
loans, and assistance for timber workers in mill
housing to buy properties utilising Ministry home
ownership schemes. An officer was made available at
the Ministry’s Manjimup office to assist with
inquiries, and action was taken to inform the timber
workers about their housing options.
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
T ENANT E MPLOYMENT P ROGRAM
The Ministry this year took a proactive stand to try to
help more Homeswest tenants access training and job
opportunities. In July 1999, the Ministry surveyed
Homeswest’s unemployed tenants, and offered to help
all members of the household in their search for work
with a view to encouraging more people to consider
home ownership.
With the respondent’s agreement, survey information
was forwarded to Job Network members, who had
earlier agreed to participate by making assessments
and offering assistance where possible. Tenants were
advised on employment-related issues and services
available and were given information on courses, with
special emphasis on growth areas of employment.
The tenant employment program has so far resulted
in paid work for a number of people and enhanced
the prospects of many others.
13

Corporate
Governance
14
T HE B OARD
The Board of Commissioners is accountable for the
performance of the Ministry as required under the
Housing Act 1980, and is responsible for its overall
corporate governance.
The Board formulates strategic direction, establishes
policies, sets the budget and programs and monitors
achievements against agreed targets and outcomes,
subject to the control and direction of the Minister
for Housing.
Written reports on the Ministry’s activities and
financial statements are provided to the Board each
month.
The Board members are appointed on the
recommendation of the Minister for Housing for a
period of up to three years. Commissioners are
bound by the provisions of the Statutory
Corporations (Liability of Directors) Act 1996.
In addition, the Board has adopted for itself and
members of other Boards associated with the
Ministry, the Code of Conduct of the Australian
Institute of Company Directors.
Remuneration for Board members is: Chairman
($48,300 plus vehicle and expenses), Deputy Chair
($26,500) and Members ($19,320). Further details
can be found in the Financial Statements.
In 1999/2000, there were 11 Board meetings, with
attendance shown below:
Name Number Maximum
Lloyd Guthrey
Attended Possible
Attended
(Chairman)
Anne Hector
10 11
(Deputy Chairman)
* Ron Attwood
10 11
(ceased April 30, 2000) 8 9
Robert Brown
* Jeanice Krakouer
11 11
(commenced May 1, 2000)
* Peter Marks
2 2
(ceased April 30, 2000) 8 9
Steven Prosser
* Peter Unsworth
11 11
(commenced May 1, 2000) 2 2
Greg Joyce (ex officio) 9 11
A UDIT C OMMITTEE
The Audit Committee is a Standing Committee of the
Board of Commissioners, which ensures the
development and maintenance of an effective system
of control and compliance with statutory
responsibilities. It also ensures an effective internal
audit function as required by the Financial
Administration and Audit Act.
The Committee monitors management responses to
audit issues and recommendations dealing with
compliance matters.
An Audit Committee Charter establishes the
responsibility and authority of the Committee and
defines its terms of reference.
The Audit Committee comprises three members –
Anne Hector, Deputy Chairman Board of
Commissioners (Chairman), Lloyd Guthrey,
Chairman Board of Commissioners and Greg Joyce,
Managing Director. The Ministry’s Executive Director
Financial Services and an officer from the Office of
the Auditor General attend meetings as observers.
The Committee met four times during 1999/2000,
and all members were present at all meetings.

B OARDS
• Landstart
The Landstart Board is chaired by Lyn Bennett, and
comprises four other members – Lloyd Guthrey,
Chairman Board of Commissioners, Greg Joyce,
Managing Director, Lou D’Alessandro, Executive
Director Landstart and external member Peter
Solomon.
The Landstart Board meets bi-monthly to consider all
aspects of Landstart’s functions. This includes
acquisition, development and sale of land, provision
of land for rental construction, joint venture land
developments and the financial and functional
management of the land asset. The Landstart Board
provides a copy of its minutes to the Ministry of
Housing Board and operates under delegated
authority. Decisions on major acquisitions and sales
are referred to the Ministry of Housing Board.
Governance of joint venture projects is provided by a
joint venture board and/or meetings of directors of a
management company. Directors and board members
for joint venture entities are selected by the Ministry
of Housing Board from nominations by the Landstart
Board. They generally comprise at least one
representative from the Ministry of Housing or
Landstart, the Executive Director Landstart or a
senior manager from Landstart.
Joint venture boards and committees feature equal
representation from both participants. Some have an
independent chairperson while others are chaired on
a rotating basis between the two participants.
Joint venture boards and committees meet either
monthly or bi-monthly, according to the progress and
size of the project. Their function is to consider and
approve policy, major tenders, sales rates and prices,
marketing and other aspects of the development that
may affect its progress.
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
• Keystart
The Board of Commissioners of the Ministry of
Housing appoints a Board of Directors to govern
Keystart. This Board comprises six members – Lloyd
Guthrey, Chairman Board of Commissioners, Greg
Joyce, Managing Director, John Coles, Executive
Director Financial Services, Hector Stebbins,
Chairman Western Power, David Butler, Deputy CEO
of the WA Treasury Corporation and Peter Marks,
practising solicitor.
Keystart provides the loan function for the Ministry,
with its principal role being to provide access to
home ownership for people who would generally not
qualify for public rental assistance, but who would
have difficulty obtaining finance from the private
sector. The Keystart Board meets monthly to
consider Keystart’s functions.
• Aboriginal Housing Board
The Ministry’s Aboriginal housing programs and
services are overseen by a 10 member Aboriginal
Housing Board (AHB), which has equal State and
Commonwealth representation. The Board’s role is to
guide the development of policies and programs that
improve the quality of housing and access to housing
for Aboriginal people. The Board’s strategies are
implemented by the Aboriginal Housing and
Infrastructure Unit (AHIU) of the Ministry of
Housing.
In December 1999, the Board published a three-year
Strategic Plan for 1999/2002 to guide the future
activities of the AHIU. The Plan was approved by the
State Minister for Housing and the Commonwealth
Minister for Family and Community Services.
The members of the Aboriginal Housing Board are:
Jeanice Krakouer (Chairperson), Ron Attwood
(Deputy Chairperson), Pauline Manning, Noel Green,
John McGuire, Eric Wynne, Eric Bedford, Preston
Thomas, Terry Whitby and Ian Trust.
15

16
L ONG T ERM F INANCIAL P LAN
During 1999/00, the Ministry’s long term financial
plan was updated and approved to incorporate the
most recent trends and information. The plan will
continue to provide the Ministry and its divisions
with the financial information necessary to set its
strategic direction for the coming decade and ensure
the sound long term financial viability of the
organisation.
P ERFORMANCE M EASUREMENT
R EPORTING
The Balanced Scorecard and associated performance
measurement software was implemented in 1999/
2000. Regular scorecard reporting to management
occurs on a monthly basis, and to the Board of
Commissioners on a quarterly basis.
The Balanced Scorecard approach has been used to
provide management with comprehensive
information on financial and non-financial
performance in a unified manner. The timeliness of
reporting enables management to be proactive in its
decision-making by readily identifying and reporting
on areas meeting or not meeting targets through
colour coding and a “drilldown” facility. Corrective
action can then be taken at the appropriate level of
the organisation.
The Balanced Scorecard goes a long way towards
clarifying organisational outcomes, what the
organisation as a whole is expected to accomplish
and measuring the degree of progress towards these
outcomes.
R ISK M ANAGEMENT
Risk Management is strategically and operationally an
integral part of the organisation. The Ministry has
procedures in place to identify all risks and
implementation of strategies to minimise risk.
Early in the year, a strategic risk environment
assessment report was undertaken by the appointed
auditors, Ernst & Young, and presented to the Board.
The report identified strategic risks faced by the
organisation. Appropriate action plans have been
developed and implemented with line managers.
Progress reports on all significant risks and associated
action plans are made to Executive and the Board
who are committed to the implementation of risk
minimisation strategies.
I NTERNAL A UDIT F UNCTION
As required by the Financial Administration and
Audit Act, the Management Review and Audit Branch
(which incorporates internal audit services) operates
as an independent appraisal activity within the
Ministry.
This review of operations is a service to management
and assists the accountable authority (the Board of
Commissioners) with its Corporate Governance
responsibilities. An audit charter establishes the
authority, responsibility and independent status of the
branch. Internal audit coverage is provided against a
comprehensive Strategic Audit Plan which addresses
the key business risks of the organisation and focuses
on reviewing the efficiency and effectiveness of
operations. This plan is reviewed annually.
The internal audit services continued to be provided
by accounting firm Ernst & Young under a three-year
contract which was awarded in May 1999 and expires
on June 30, 2002.
P OLICY AND P ROCEDURES
The Ministry of Housing ensures that all policy and
procedures manuals are regularly reviewed and kept
up to date. In July 1999, the Ministry also reviewed
issues relating to privacy and confidentiality and has
implemented a Corporate Privacy and Confidentiality
policy. This policy applies to staff and agents and is
of benefit to all customers. An aspect of this policy
that was reviewed by the Board was media responses.
The Board reaffirmed that where clients or their
advocates sought exposure in the media, the Ministry
of Housing would respond with whatever facts were
reasonably required to ensure a balanced view was
put to the public.
During 1999/2000, an external audit was conducted
on the Ministry’s Community Housing policy.

Homeswest’s rental and maintenance and Community
Housing policies are now available on the Ministry of
Housing Internet and Intranet sites, along with many
other major policies. Policy changes are immediately
updated on the web site to ensure the public and staff
always has access to the latest information.
T RADE P RACTICES A CT
The Ministry conducted a further series of training
seminars in 1999/2000 as part of its Trade Practices
Act Compliance Program. The purpose of these
seminars was to ensure that relevant staff understood
their obligations under the Act.
It is intended to undertake a review of the Ministry’s
compliance program in 2000/2001 to ensure it is
performing effectively and remains appropriate to the
organisation’s operations.
N ATIONAL C OMPETITION P OLICY
As part of the Western Australian Government’s
commitment to the National Competition Policy, the
Ministry of Housing completed a competitive
neutrality review in August 1999.
The review recommended that the commercial
activities of the Ministry’s Residential Land Unit
(Landstart) be ringfenced from the non-commercial
activities of the rental business unit (Homeswest).
A consultancy was undertaken for the Ministry to
recommend a suitable accounting framework for
Landstart. These recommendations have now been
fully implemented.
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
C USTOMER S ERVICE C HARTER
The customer service charter for the Ministry of
Housing clearly identifies the standards of service
customers should expect. These standards are based
on the four key principles of friendly and courteous
service, fairness, efficiency, and accurate information.
In 1999/2000, the Charter was reviewed and updated
to include service level standards for each of the
Ministry’s six key areas of business. These include
Homeswest, Aboriginal Housing and Infrastructure,
Landstart, Keystart, Government Employees Housing
Authority and Country Housing Authority. These
standards define the minimum levels of service the
Ministry aims to provide across the organisation and
include:
Staff will answer telephone calls within three
rings and tell their name and work area, and will
respond to telephone messages by the next
working day.
People visiting Ministry offices will not have to
wait longer than 10 minutes for counter service,
and staff will wear name badges when assisting
them.
Letters will be acknowledged immediately and a
reply provided within 10 working days.
Customers also have access to the Telephone
Interpreter Service and a TTY number (08 9221
3985) for people with a hearing impairment.
C ODE OF C ONDUCT
As required by the Western Australian Public Sector
Code of Ethics, the Ministry has a Code of Conduct
for all employees, incorporating the ethical principles
of:
Justice
Respect for People
Responsible Care.
The Code of Conduct sets out the responsibilities and
obligations required of all employees when dealing
with customers and with each other.
A review of the Code of Conduct will be conducted
in 2000/2001 to ensure that it is reflective of the
needs of the new Ministry of Housing.
17

18
I NDEPENDENT P ROFESSIONAL
A DVICE
The Board of Commissioners has in place a system to
obtain independent professional advice to assist with
the operation of the organisation.
T HE N EW TAX S YSTEM
The introduction of “A New Tax System” has had a
major impact on the financial and administrative
operations of the Ministry of Housing. The increase
in costs resulting from the GST has been
compensated through increased Commonwealth and
State funding.
The Ministry commenced assessment of the impact of
the GST in late 1998 following the introduction of
“A New Tax System” legislation into Parliament in
December 1998. A GST Project team was established
in May 1999, and an Implementation Plan was
developed which focused on the financial and
administrative impact of the new tax system. As a
result, changes to cashflows, systems and procedures
were developed, implemented and tested.
A significant amount of staff training was delivered
across the State, and the GST Project Team ensured
that the Ministry took advantage of business
opportunities arising from the legislation. These
activities resulted in a smooth and trouble-free
transition into the New Tax System on July 1, 2000.
Y EAR 2000 COMPLIANCE P ROJECT
In November 1998, the Ministry established a
designated Y2K Project Office to ensure that the
organisation was not affected from an operational or
business aspect from the Millennium Bug date change
on December 31 1999.
This enormous task involved ensuring the durability
of the mainframe computer system, office and
building equipment and seeking assurance from a
myriad of critical suppliers of goods and services as
to their Y2K compliance. An Information Services
Disaster Recovery Plan was prepared to minimise
damage and to assist in the reinstatement of
equipment and software in the event that a problem
did occur. A Business Continuity Plan was prepared
to ensure that business services would be maintained
in the event of a Y2K crisis. Fortunately, neither of
these plans needed to be invoked.
As a result of detailed planning and work undertaken
by the Project Office, the Ministry was not affected by
the millennium date change, and all systems and
business operations continued to function
uninterrupted.
D ELEGATION OF A UTHORITY
The Housing Act 1980 is ultra vires legislation and all
authority is domiciled in the Board of
Commissioners. By operation of Section 13 of the
Act, the Board can, with the consent of the Minister
for Housing, delegate by an instrument in writing,
any of its powers and functions under the Act to an
officer within the Ministry.
Through delegation, the need to obtain Board
approval for what are considered to be essentially
administrative matters associated with the day to day
operations and activities of the Ministry is removed.
Officers are empowered with comprehensive and
appropriate authority to approve and negotiate on
behalf of the Ministry in specified matters.
The Delegation of Authority register is the subject of
continual review.

C OMPLIANCE WITH L EGISLATION
In the performance of its functions, the Ministry of
Housing has exercised all reasonable care to comply
with relevant written laws, as amended from time to
time, including:
Commonwealth legislation:
◆ Housing Assistance Act 1996
◆ Privacy Act 1998
◆ Corporations Law
◆ Disability Discrimination Act 1992
◆ Trade Practices Act 1974
State legislation:
◆ State Supply Commission Act 1991
◆ Financial Administration and Audit Act 1985
◆ Residential Tenancies Act 1987
◆ Public Sector Management Act 1994
◆ Salaries and Allowances Act 1975
◆ Public and Bank Holidays Act 1972
◆ Equal Opportunity Act 1984
◆ Government Employees Superannuation Act
1987
◆ Occupational Health, Safety and Welfare Act
1987
◆ Workers’ Compensation and Rehabilitation Act
1981
◆ Industrial Relations Act 1979
◆ Industrial Relations Amendment Act 1993
◆ Minimum Conditions of Employment Acts 1993
◆ Workplace Agreements Act 1993
◆ Freedom of Information Act 1992
◆ Environmental Protection Act 1986
◆ Statutory Corporations (Liability of Directors) Act
1996
◆ Fair Trading Act 1987
◆ Consumer Credit (Western Australia) Act 1996
◆ Housing Act 1980
◆ Transfer of Land Act 1893
◆ Valuation of Land Act 1978
◆ Land Administration Act 1997
◆ Local Government Act 1995
◆ Water Corporation Act 1995
◆ Water Boards Act 1904
◆ Public Works Act 1902
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
◆ Town Planning and Development Act 1928
◆ Metropolitan Region Scheme Act 1959
◆ Aboriginal Heritage Act 1972
◆ Native Title (State Provisions) Act 1999
◆ Swan Valley Planning Act 1995
◆ Strata Title Act 1985
◆ Heritage of Western Australia Act 1990.
* Note: The above legislation is not intended to be a
comprehensive listing of all written laws with which
the Ministry is required to comply.
19

(
The Ministry of Housing assists people on low to moderate incomes to realise their dream of home
ownership through safe, affordable loan schemes including Keystart, Goodstart, the
Aboriginal Home Ownership Scheme, Access Home Loans and Right to Buy.
Home Ownership
20
Roger Guinery
BA (Hons) MA (Econ) MBA
Director Home Ownership
Roger Guinery joined the Ministry of Housing
in November 1999. He has extensive
international and Australian experience in
policy, marketing and contracting, and a high
level of skills in management and economics.
H IGHLIGHTS OF THE Y EAR
The Keystart scheme approved 4560
home loans.
The GoodStart scheme helped 170
Homeswest households and rental
applicants into home ownership.
A total of 2049 properties have been sold
to tenants since the Right to Buy scheme
began.
48 loans were approved under the
Aboriginal Home Ownership Scheme.
Access Home Loans helped 72 households
including people with disabilities to
purchase or modify their homes.
O VERVIEW
The Ministry’s home ownership schemes are the most
successful government-backed loan schemes in
Australia. In 1999/2000, they helped 4850 Western
Australians with home finance, providing 1319 loans
for building new homes and 3531 loans to buy
established homes. The effect of these loan approvals
is an injection of 459.8 million into the State’s
housing industry to create and maintain employment
for Western Australians.
The range of schemes ensures a number of options
are available for a diverse customer base. This
includes the opportunity for people who can’t afford
full home ownership to enter into an arrangement
with the Ministry to buy part of their home now, and
purchase the remainder at a later date.
The formation of the Ministry of Housing in June
1999 led to the administration of all of the loan
schemes being centralised under the Keystart
business unit. The centralised approach is improving
customer service through better customer and
community group liaison and better access to
information.
)

M INISTRY OF H OUSING 2000 ANNUAL R EPORT
21

Home Ownership
22
K EYSTART REACHES $3 BILLION
Keystart was launched by the Western Australian
Government through the State Housing Commission
in April 1989 as an innovative program to provide
low-deposit home loans to people on low to
moderate incomes. In the past 11 years, Keystart has
helped more than 35,000 families into home
ownership and provided more that $3 billion in lowdeposit
loans.
The scheme again performed well this year, although
demand for Keystart loans fell towards the end of this
year – partly in anticipation of the $7,000 First Home
Owners Grant commencing on 1 July 2000. This
was partly because the rush to build before the GST
was ending, and partly in response to rising interest
rates. Demand is, however, expected to surge in the
early months of 2000/01.
An important initiative this year has been the
decision to no longer restrict lower deposit loans to
first home buyers. In the past, Keystart loans were
available to first home buyers at two per cent deposit,
and to other borrowers at five per cent deposit.
However, loans of up to $130,000 are now available
to all eligible Keystart borrowers at the lower deposit
rate of two percent of purchase price or $2,000,
whichever is greater. The amount borrowed may
include up to $2,000 for the payment of fees. A five
per cent deposit is required for loans over $130,000,
and money to pay fees may not be borrowed for these
larger loans.
The change, which was implemented on April 3,
2000, recognises that many low and moderate
income home buyers, whether they are first home
buyers or not, cannot reasonably save a large deposit.
The new system will allow many more people to
access housing finance.
Keystart-approved borrowers can be lent amounts up
to 2.6 times their assessed annual income. The
maximum amount of any loan under the scheme is
$150,000. Loans are based on a 25-year term and
interest is charged at the Keystart variable rate.
Keystart requires that repayments do not exceed 31
per cent of the borrower’s assessed income when the
loan is approved, and that the borrower’s total
commitments to the home loan and other loans do
not exceed 35 per cent of assessed income.
Keystart loans are available through the Trades and
Labor Council of WA Building Society, University
Building Society, Western Homebuyers Building
Society and Westland Building Society. An important
initiative during the year was that all four retailers
now offer a toll free phone number for country
callers.
G OODS TART SHARES SUCCESS
The GoodStart Shared Equity Scheme (managed by
Keystart) has performed well since its introduction in
August, 1997. By 30 June 2000, it had helped 932
Homeswest tenants and rental applicants make the
transition to home ownership. In 1999/2000, the
scheme provided $14.3 million to 170 applicants and
the number of applicants for loans exceeded the
number of Homeswest homes available for purchase
under GoodStart.

GoodStart borrowers can buy a minimum 50 per cent
share in a Homeswest property, with the Ministry of
Housing providing the loan funds. The remaining
share of the property is owned by the Ministry and
can be purchased by the borrower at a later date.
GoodStart loans do not require a deposit and the
Ministry provides up to $1,500 to help with the
upfront costs of buying a property. As at 30 June
2000, the interest rate was fixed at 6.5 per cent. The
fixed rate applies until the borrower’s income exceeds
the Ministry’s eligibility limits. The rate then moves
to the Commonwealth Bank’s standard variable home
loan rate. Repayments, which include an amount for
rates and insurance, are set at 25 per cent of the
borrower’s assessed income.
Trades and Labor Building Society is the retailer for
all new GoodStart loans.
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
R IGHT TO B UY TURNS TENANTS
INTO HOME OWNERS
The Right to Buy scheme enables Homeswest tenants
to buy their rental properties outright. A discount is
offered to tenants, the level of which is determined by
length of tenancy and the age of the property. The
maximum discount is $20,000. Tenants can also be
reimbursed for improvements made to the property.
During 1999/2000, 235 tenants were able to buy
their rental properties under the Right to Buy scheme.
Since the scheme commenced, a total of 2049
properties have been sold to tenants.
M ORE A BORIGINAL HOME OWNERS
Since the Aboriginal Home Ownership Scheme began
in 1995, it has helped more than 260 households of
Aboriginal or Torres Strait Islander descent into home
ownership. It is staffed by Aboriginal people who
provide practical help and advice to customers.
During the year, 48 loans totalling $4.8 million were
approved. This included 41 loans for established
properties and 7 to construct new homes.
The scheme enables applicants who cannot afford to
borrow the full price of a property to buy a minimum
70 per cent share with funds provided by the
Ministry. The remaining share is held by the Ministry
and can be purchased at a later date by the borrower.
23

Home Ownership
24
Buyers must have a $1,000 deposit and are eligible
for a cash assistance grant of $2,500 (which does not
have to be repaid) for loan establishment fees, stamp
duty and settlement costs. Mortgage payments are
calculated to be not more than 23 per cent of gross
income and are based on a 30-year loan term.
Aboriginal Home Ownership loans are available
through the Ministry of Housing’s Aboriginal Home
Ownership Branch
A CCESS TO BETTER HOMES
The Ministry of Housing this year approved 72
Access Home Loans totalling $5.7 million to help
people with disabilities buy or modify their homes to
meet particular needs. Since the scheme began in
1995, it has approved 292 loans with a total value of
$20.9 million.
The scheme enables people on disability support
benefits and their carers who receive a pension to
purchase a minimum 50 per cent share of a property,
with the Ministry owning the remaining share.
Borrowers pay a minimum $1,000 deposit and may
be eligible for grants of up to $2,500 to help meet
loan establishment fees, stamp duty and settlement
costs.
The loans are also available for capital works to make
homes better suited to people with disabilities. For
example, loans can be used to widen doorways,
remove walls or modify bathrooms, and to build
granny flats in privately owned homes.
Access home loans are available through the Ministry
of Housing’s Access Home Loan Branch.
S AFETY N ET PREVENTS HOME LOSS
The Safety Net scheme helps borrowers whose
financial situation deteriorates after their loans are
approved and who, without assistance, might lose
their home. Repayment amounts may be reduced for
a specific time. Alternatively, in the case of some
Keystart loans, where the borrower is unlikely ever to
be able to maintain the full loan but can pay 50 per
cent or more of the full repayment rate, the Ministry
may buy up to 50 per cent of the property and
provide a shared equity loan.
The Safety Net scheme has proved effective and has
helped 373 borrowers in less than three years. In
1999/2000, 128 borrowers received Safety Net
assistance. Relationship breakdowns and
unemployment were the main reasons for people
requiring assistance.

B ETTER SERVICE,
BETTER COMMUNITIES
The Ministry, through Keystart, undertakes a range of
activities to enhance its total service to home loan
customers. This includes sponsoring local
community activities, and supporting and liaising
with community organisations.
In the past, sponsorship has ranged from funding to
establish community playgrounds, to providing
security lighting to help deter vandalism. This year,
there was a strong focus on assisting young people to
participate in skills development programs. During
1999, Keystart supported Young Achievement
Australia business programs at Geraldton College and
Kwinana, North Albany and Thornlie Senior High
Schools. During 2000, it is sponsoring programs at
Balga TAFE, Bullsbrook District High School and
Karratha, North Albany, Mount Barker and Thornlie
Senior High Schools. Participants learn crucial
management and marketing skills by working in
teams to establish their own business to make and
sell products. The students, assisted by local
business mentors and advisers, have to register their
company, sell shares, elect a management team, and
research, design and produce goods or services that
will meet a market niche.
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
The Ministry also maintained its strong commitment
to community-wide consultation, with Keystart and
Ministry officers attending meetings of the Home
Finance Advisory Committee on a regular basis. The
committee was established by Keystart several years
ago to give community groups and stakeholders a
voice in policy formation, and includes
representatives of the Ministry of Fair Trading, the
Federation of Building Societies, the Financial
Counsellors Association, Fremantle Migrant
Resources Centre, Consumer Credit Legal Service and
the WA Municipal Association.
25

Home Ownership
26
In April 2000, due to the significant workload that
had developed, the committee was restructured into
two separate committees to enable more efficient
operation. These are the Home Finance Policy
Advisory Committee which deals with broad areas of
social and other policy; and the Home Finance
Operational Advisory Committee which deals with
practical operational concerns. The committees will
meet jointly when required.
Keystart also continued to support and work closely
with the Financial Counsellors Association of WA.
Financial counsellors, who teach the skills of
budgeting and managing limited financial resources,
play an invaluable role assisting borrowers who have
financial difficulties. They can help clients to arrange
debt payments and also assist them in discussions
with their home loan retailers. Keystart provides
ongoing funding to assist the Financial Counsellors
Association. This includes $3,000 this year towards
the cost of holding their annual conference. An
important achievement this year was the
commencement of a TAFE Diploma course for
financial counsellors, which was developed with
financial support from Keystart.
K EYSTART C OMMUNICATION
Keystart keeps customers informed by mailing a
regular newsletter with its loan statements and by
maintaining a comprehensive Internet web site. The
web site was given a new look in March 2000, and in
its reconstructed form was launched with the new
Ministry of Housing Internet site.
The web site provides customers and the business
community information on the various Keystart
products and services, gives preliminary advice to
potential borrowers on loan calculations, enables
them to print their application forms, and provides
tips on home ownership. It can be accessed at
www.keystart.com.au or through the Ministry site at
www.housing.wa.gov.au.
Two editions of the The Keystarter newsletter were
published during the year in December 1999 and
May 2000.

F IRST H OME O WNERS S CHEME
The Ministry of Housing coordinated the awareness
campaign for the First Home Owner Scheme, a
$7,000 grant designed to help people purchase their
own home and to compensate for cost increases
associated with the introduction of the Goods and
Services Tax on July 1, 2000.
The Ministry’s helpline assisted over 15,000 callers
wishing to know if they would be eligible for the
grant when the scheme commenced on 1 July 2000.
The Ministry liaised extensively with the housing
industry and relevant agencies in the Commonwealth,
State and Territory Governments to ensure a smooth
transitional period.
The First Home Owner Scheme is a joint initiative of
the Commonwealth, State and Territory Governments
under an inter-governmental agreement. In Western
Australia the scheme is administered by the State
Revenue Department.
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
27

Home Ownership
28
O UTCOME:
R EALISTIC H OME O WNERSHIP O PPORTUNITIES FOR L OW TO M ODERATE
I NCOME W ESTERN A USTRALIANS
HOME OWNERSHIP OUTPUTS 1999/2000
Q UANTITY & COST
Actual Target
Keystart
Number of loans approved 4560 5000 There was a slow down in loan approvals in the
Value of loans approved $435m $498m latter half of the financial year due to homebuyers
electing to defer their applications for assistance
until after the introduction of the $7,000 first home
buyer grant, which commenced from 1 July 2000.
GoodStart
Number of loans approved 170 280 The value and number of loan approvals was less
Value of loans approved $14.3m $20m than anticipated due to matching the borrowers’
affordability to the availability of suitable properties
in areas of high demand.
Aboriginal Home Ownership Scheme
Number of loans approved 48 55 The scheme met the level of demand. Some
Value of loans approved $4.8m $5.5m homebuyers elected to defer their application until
after the introduction of the $7,000 first home buyer
grant.
Access Scheme loans approved
Number of loans approved 72 65 The demand for the scheme was greater than
Value of loans approved $5.7m $5.0m anticipated.
1996/1997 1997/1998 1998/1999 1999/2000
Management Cost per Loan – Real $330 $319 $268 $274
For further information refer to Performance Indicator 1.3.
T IMELINESS
Percentage of eligible home loan applicants
1996/1997 1997/1998 1998/1999 1999/2000
assisted with a loan 100% 100% 100% 100%
For further information refer to Performance Indicator 1.1

Q UALITY
Overview of Satisfaction amongst Keystart Home
Loan Clients
Since 1996/1997 an independent market research
agency has undertaken surveys of Ministry home loan
clients. The aim of the survey is to measure client
satisfaction with various aspects of service and the
overall service provided to home loan clients.
The survey conducted in 1999/2000 was amongst
Keystart customers (who make up the highest
proportion of the total loan portfolio) and not home
loan customers of the Ministry’s specialist schemes.
With an overall satisfaction of 5.81 (where a score of
1 indicates complete dissatisfaction and a score of 7
indicates complete satisfaction), satisfaction levels
amongst Keystart customers are high.
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
Satisfaction – An Overview (1999/2000)
Number of people
interviewed = 609
Mean Score
Overall Satisfaction
Service Element
5.81
Speak clearly 6.11
Respect 6.07
Efficiency – queries 5.92
Loan approval process 5.92
Guidance in resolving arrears problems 5.90
Accuracy of communications 5.79
Ability to answer questions 5.74
Individual needs 5.71
The customer satisfaction survey was undertaken in
two stages, the first was in-depth qualitative research
involving focus group discussions and in-depth
interviews with borrowers, and the second consisted
of telephone interviews with sample respondents.
A total of 609 Keystart customers were interviewed,
split proportionately between the four Keystart
retailers and between country and metropolitan areas.
The sampling error for the total sample of 609
interviews was ±3.9 at the 95% confidence level.
29

( )
The Ministry of Housing, through its Landstart Directorate, is one of the major developers and sellers of
residential land in Western Australia.
Land and
development
30
Glenn Finlay
Manager Development and Sales
Landstart carries out the functions of land
acquisition, strategic planning for future use of its
land resources, management of land holdings, and
development and sale of residential land.
Landstart retains a required number of lots (not
exceeding a ratio of 1 in 9) for use by Homeswest in
constructing new rental dwellings. It also manages
the important “New Living” program, which
provides for the redevelopment of areas of high
public housing concentration to reduce the rental
presence, improvement of the dwellings, and
provides a supply of refurbished dwellings and
residential land for sale to the public.
Landstart outsources most of its functions,
employing private sector project managers and
consultants in its planning, development, financial,
legal and sales activities. It also employs the joint
venture method of development, which invites
private sector companies to share the risk and
profits from selected projects.
H IGHLIGHTS
The five-year New Living project at Lockridge
was successfully completed and won the 1999
Urban Development Institute Award (UDIA) for
Excellence in Urban Renewal.
The New Living Program was nominated for the
Building and Social Housing Foundation’s 1999
World Habitat Award for a developed country.
The “Eastern Horizons” New Living project
commenced, involving redevelopment in parts of
Midland, Midvale, Swan View and Koongamia.
455 dwellings were refurbished and sold under
the New Living program.
Landstart sold 1406 vacant lots for $85.19
million.
56.29 per cent of land sold to home buyers was
sold to first home buyers.
1483 lots were developed at a cost of over
$26 million.
235 rental properties were sold to Right To Buy
and Goodstart applicants, worth over
$19 million.
153 vacant rental properties were sold for more
than $19 million.

M INISTRY OF H OUSING 2000 ANNUAL R EPORT
31

Land and
development
32
LAND PROGRAM
J OINT V ENTURES
In 1988/89, the Ministry of Housing (then
Homeswest) experimented with partnering in land
development by means of joint ventures with the
private sector in Alinjarra, Marangaroo and
Mirrabooka. Further exploration of this method led
to the very successful Ellenbrook joint venture which
commenced land sales in 1993. The benefits to the
Ministry have been access to the strengths of the
private sector in innovative presentation and
marketing, the creation of sustainable communities,
plus a sharing of the risk in major developments.
The joint venture method is now a tried and tested
feature of the Ministry’s development mechanism and
is in fact the focus of Landstart’s development and
marketing program. Eight joint ventures are
currently operating, another is in the final selection
stages, and negotiations are proceeding on five
further projects. Landstart’s joint venture partners
include some of the most respected and progressive
community developers, and the projects have
attracted Australia-wide interest.
The Ellenbrook Joint Venture – one of the most
successful land development projects in Australia –
continued to attract interest and comment during
1999/2000, with 2177 lots sold and 1524 homes
occupied by 30 June 2000. The third stage,
Coolamon, is achieving good sales although affected
by the pre-GST slump during the last quarter of the
financial year. Coolamon features an Australiana
theme and introduces innovative technology features
designed to encourage residents who want to work
from home. A concept home and display village have
opened and are attracting strong interest.
The fourth stage, Morgan Fields, to the south of
Gnangara Road has also opened and features some
larger lots as well as traditional lots. Interest has
been very strong for the larger product. A second
builder’s display village will be featured in this area.
A retirement village has also been introduced in The
Bridges, which was the second stage of the
Ellenbrook project. The retirement village
incorporates a community centre which is open to
the whole community with the aim of giving the
retirees the opportunity to mix with the rest of the
community. As well, the commercial centre

established in Woodlake Village now includes a
supermarket and other retail outlets, as well as small
businesses and professional premises.
State Cabinet has now approved seven more joint
venture projects in addition to Ellenbrook. Four of
these are now producing lots at Dalyellup near
Bunbury, Seacrest near Geraldton, Woodrise in
Albany and Palm Beach near Rockingham. Two of
the larger projects, Dalyellup and Seacrest, feature
technology provisions with cabling to each lot for
Internet and TV services and with additional features
being made available as the developments proceed.
Other approved projects include a joint venture at
Beeliar with the Property Resources Group, one at
Butler with the Butler Land Company and one at
Bunbury with Pindan Pty Ltd. Each project has its
own unique features. At Bunbury, Pindan will
develop two broadhectare holdings at Glen Iris and
Shearwater, an infill development on the site of the
old Bunbury hospital and will refurbish two existing
suburbs of Carey Park and Withers, reducing the
Ministry’s presence and improving the living
standards in the suburbs.
Each joint venture will provide a supply of lots for
the construction of Homeswest rental properties as
well as residential land within range of the first home
buyer. The private sector participants manage the
projects and provide expertise in marketing,
community development and planning that will
result in attractive, sustainable communities being
formed.
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
Fifteen superlots have now been sold to private
developers, the most recent being at Denmark in
December 1999. The sale realised over $200,000 to
the Ministry of Housing and will provide a site for
aged persons’ housing close to all facilities.
In addition, sales of 441 lots for $12.85 million were
achieved. This is compared to a budget of 462 sales
for $17.67 million. During 1999/2000, 710 lots were
developed for $10.82 million. This is compared to a
budget of 585 lots at a cost of $11.88 million.
O UTLOOK 2000/2001
Joint venture agreements are being finalised for
Beeliar, Butler and Bunbury and work will commence
on all three developments during the current
financial year. Landstart’s 120 hectare holding at
Clarkson has been advertised, with seven submissions
received. The selection process is under way and
negotiations will then proceed with the preferred
tenderer while formal approval is being sought.
It is proposed to seek submissions for joint venture
development of Landstart holdings at Golden Bay and
Brookvale during the year. Negotiations are
continuing on proposed developments at West
Stratton, Mandurah and Esperance. Longer-term
projects at Albion Town (Henley Brook), Forrestdale,
Herne Hill and Amarillo are being progressed and
Landstart continues dialogue with other developers
who have approached it with projects for
consideration.
In 2000/2001, a development program of 1004 lots
at a cost of $22.41 million is planned. In addition,
sales of 866 lots for $26.68 million is forecast.
33

Land and
development
34
L AND S ALES
The Ministry, through Landstart, sells land from the
development of its broadhectare land, and from
redevelopment and infill sources.
In 1999/2000, 760 residential lots were sold for
$57.28 million, compared to an annual target of 772
lots for $52.15 million.
The early months of the year saw the effect of
pre-GST urgency in the building market, followed by
a definite slowing of interest in the last quarter. Lack
of buyer confidence due to uncertainty over the
effects of GST, possible interest rate increases and the
imminent release of the $7,000 First Home Owners’
Scheme grant contributed to this slow down.
During the year, auctions were held at Dianella,
Willagee, Hilton, Manning and Como with mixed
results. In Dianella, interest remained strong with
consistent sales. However, the auction method was
new to the Willagee market and most sales in this
area occurred after the auction.
O UTLOOK 2000/2001
The 2000/2001 program envisages selling 590 lots for
$52.18 million. Sales will concentrate on Dianella
and the balance of Beeliar, Banksia Grove and
Quinns, with slower-moving developments
continuing at Stratton and Warnbro. In addition,
sales are planned for Willagee, Hilton, Manning,
Como, Bentley, Carlisle and East Victoria Park.

L AND D EVELOPMENT
The Ministry of Housing is involved in development
of its broadhectare holdings to achieve three main
goals. These are providing a supply of lots for the
construction of rental housing, ensuring a continual
supply of affordable land for the public with an
emphasis on first homebuyers, and providing a
revenue stream to fund the Ministry’s social
programs.
The continued move to joint venture development
has seen a lessening of emphasis on development
in-house. During the year, 176 lots were developed
at a cost of $4.32 million, compared with a budget
forecast of 329 lots at a cost of $8.15 million.
The main projects during the year were the continued
development at Dianella and the first homebuyer
areas at Banksia Grove and Quinns. Appointment of
new project managers for Beeliar saw sales strengthen
considerably in a flat market, with extended
settlements being offered to purchasers eligible for the
First Home Owners Grant. The final stages of the
popular development at Alexander Heights have now
sold out. Developments at Quinns and Banksia
Grove continue to sell steadily but have been affected
by the conservative land market. First home owners
were also provided for with affordable lots at areas
like Brookdale, Stratton, Mandurah and Warnbro.
O UTLOOK 2000/2001
In 2000/2001, the broadhectare program will develop
205 lots in Banksia Grove, Quinns, Yangebup,
Broome and Mirrabooka at a cost of $10.35 million.
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
L AND A CQUISITIONS
To meet future rental needs and provide an ongoing
supply of land for first home buyers, the Ministry
buys single residential and grouped housing lots for
rental housing, and broad hectare land to be used for
future development.
Planned expenditure this year was $9.728 million,
and actual expenditure was $12.73 million. The
expenditure was increased to acquire strategically
located group housing and single allotment sites for
the rental housing construction program.
A total of 20 group housing development sites were
acquired for $5.435 million in areas near Perth and
in country regional centres. The balance of $7.295
million was used to acquire single residential
allotments and Crown land from the Department of
Land Administration.
O UTLOOK 2000/2001
A budget of $11.3 million is planned for 2000/2001
to target specific sites in the metropolitan area and
regional centres.
35

Land and
development
36
NEW LIVING PROGRAM
O VERVIEW
The aim of the New Living program is to redevelop
older public housing estates to create more attractive
living environments, to reduce the Ministry’s rental
presence to between 10 and 20 per cent and to
encourage home ownership. New Living projects
vary in size and complexity but generally involve:
The refurbishment of Ministry dwellings for both
sale and retention.
The beautification and enhancement of
infrastructure in the area.
Local community involvement in activities.
Some projects also have a land development
component for the creation of new lots for sale to the
public.
The reduction in the Ministry’s rental presence is
achieved by selling dwellings after they have been
refurbished. This has the additional benefit of
providing affordable housing at the lower end of the
market. The Right to Buy and Goodstart schemes
offer attractive finance packages to help achieve this
objective.
There are eight separate New Living projects
underway in metropolitan Perth and a further nine in
country areas. In total, the projects affect over 10,000
properties - more than a quarter of all public rental
homes in Western Australia.
The eight metropolitan projects (covering 18
suburbs) consist of Kwinana (Medina, Orelia,
Parmelia and Calista), Lockridge, The New North
(Balga, Girrawheen, Koondoola, Westminster),
Karawara, Armadale/Kelmscott, Langford, Coolbellup
and the Eastern Horizons (Midland, Midvale,
Swanview and Koongamia).
The nine country projects are Spencer Park (Albany),
Carey Park and Withers (Bunbury), Collie, Nulsen
(Esperance), Adeline (South Kalgoorlie), Rangeway
(Geraldton), South Carnarvon and South Hedland.
In the metropolitan area alone, the Ministry will
commit expenditure in excess of $320 million to
these projects.
While interest in both land and houses has slowed
under the influences of higher interest rates and
impending GST, it is anticipated that the introduction
of the $7,000 First Home Owners’ Scheme on July 1
will lead to increased demand for Landstart
properties in all areas.

THE PROJECTS
T HE “NEW K WINANA”
Project Manager - McCusker Holdings / Satterley
Property Group
The Kwinana New Living project commenced in
1995 and involves the suburbs of Calista, Medina,
Parmelia and Orelia.
This landmark project is now a blueprint for similar
urban renewal projects throughout the country. The
redevelopment includes extensive refurbishment,
infrastructure, land subdivision and community
development components. When completed, some
1,300 homes will be refurbished and 3,600
residential lots created.
During 1999/2000, there were 60 houses refurbished
and sold. There were also 92 vacant home sites sold
in Stages 5-7 “Windsor Hills” in Orelia, “Chelsea
Gardens” in Parmelia, “Longview Ridge” in Parmelia
as well as Medina.
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
New Living Program Budget Actual
Expenditure – refurbishment $21.21million $30.00 million
Income – Property Sales $41.90 million $38.46 million
Settlements 546 455
Expenditure – Land development $12.45million $5.95 million
Lots created 234 186
Income – Land Sales $15.53 million $15.06 million
Lots sold 228 205
Expenditure – Redevelopment $6.33 million $5.50 million
D.U.E.s created 487 411
A number of initiatives aimed at building and
fostering community development within the project
area were also undertaken. This included a
“Christmas Carnivale” comprising two concerts on
consecutive evenings, a Carols by Candlelight evening
and a concert headlined by Margaret Urlich. West
Coast Eagles captain Guy McKenna also visited
schools in the Kwinana area as a positive role model
for children.
37

Land and
development
38
L OCKRIDGE
Project Manager - Voran Consultants
The Lockridge project commenced in May 1995, with
the Ministry of Housing owning 823 or more than
half of all dwellings in the suburb. On 25 June 2000,
the Premier officially marked the completion of the
project, which has turned a suburb dominated by
dilapidated public housing flats and an excessive
crime rate into a much sought after area.
A total of $22.6 million was spent on the five-year
transformation, with property sales projected to be
$29.3 million. Already, sales have exceeded $21.3
million. Lockridge is now officially rated by police as
a low crime area, with statistics showing a 38 per
cent reduction in crime since the program began.
The Homeswest presence in Lockridge has been
successfully reduced from 53 per cent to 16 per cent.
Highlights and milestones in 1999/2000 included:
The Lockridge project winning the UDIA Award
for Excellence in the Urban Renewal category.
The sale of 68 refurbished dwellings and 30
newly created lots.
Finalisation of the project and closure of the
Information Office at 2 Braithwaite Road.
T HE “NEW N ORTH”
Project Manager - McCusker Holdings / Satterley
Property Group
This substantial 10-year project to redevelop parts of
Balga, Koondoola, Girrawheen and Westminster
commenced in June 1998, with the target area
comprising 3,062 Homeswest dwellings.
The aim is to refurbish 1,552 of these for sale and
1,134 for retention by the Ministry. A further 376
dwellings are earmarked for demolition.
In 1999/2000, the Ministry demolished 173 units
previously known as “Narang”, “Hunt Place”, “Brine
Place” and “Edale/Salmar Way”. The demolitions
were undertaken in response to community concerns.
As a result of the demolitions, a total of 44 lots were
created and offered for sale to the public as part of
Stages 1-3 of the “Celebration Gardens” subdivision.
All of these lots have now been sold at an average
sale price of $66,000. Stage 4 lots have recently been
created and will be marketed during 2000/01.

Significant refurbishment activity also occurred
during the year. A total of 115 dwellings were
refurbished and sold to the public and a further 49
dwellings were refurbished and handed back to the
region for use as public rental housing.
The Ministry, in conjunction with the local authorities
involved, upgraded major roads in the project areas
as part of the beautification and upgrading program.
This included significant road works and
enhancements along Girrawheen Avenue, Girrawheen
and Camberwell Road, Balga.
The Ministry also provided funding for a variety of
community programs. This included the successful
Balga Christmas Celebration, which culminated in
Carols by Candlelight and a fireworks display on
4 December 1999. Satterley also continued to work
with all schools in the New North area and arranged
visits by Guy McKenna and Chris Lewis from the
West Coast Eagles as role models for students.
C OOLBELLUP
Project Manager - The Fini Group
The five-year Coolbellup New Living project
commenced in March 1999, with the Ministry
owning 750 properties in the suburb, 32 per cent of
all dwellings. The long term aim is to reduce this to
11 per cent (250 properties).
In 1999/2000, 33 properties were refurbished and
returned to the Ministry for rental purposes, and 80
were refurbished and sold to the public. The impact
of the project on the desirability of Coolbellup is
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
illustrated by sale prices for refurbished threebedroom
houses rising by 18 per cent during the year
from a starting figure of $105,000 to $124,000.
Juliet Court (formerly “Yaralla”) became the first
apartment complex to be refurbished for sale to the
public under the Coolbellup project. Forty-eight
apartments that were essentially a blight on the
suburb were transformed into a quality landmark
development on the eastern boundary of the suburb.
The three apartment buildings have been marketed
separately, with stages one and two successfully
marketed during 1999/2000.
Infrastructure works completed this year included the
provision of key entry statements at the Waverley
Road/North Lake Road intersection, the Coolbellup
Avenue/Winterfold Road intersection and the
intersection of Counsel Avenue and Stock Road,
Coolbellup. The three-hectare Hargreaves Park was
also comprehensively landscaped and upgraded.
39

Land and
development
40
K ARAWARA
Project Manager - The Fini Group
The Karawara New Living project continued to gather
momentum in 1999/2000.
Following the earlier demolition of 288 dwellings in
large apartment complexes, the focus this year was on
land development and sales.
Some 66 lots in Stages 1 and 2 of the “Collier
Gardens” subdivision were sold during the year.
Demand for lots in Karawara is strong with prices in
the order of $140,000 being achieved. Development
works are underway for Stage 3, with 54 lots
scheduled to be marketed commencing September
2000.
To date, 43 dwellings have been refurbished and sold
to the public and 41 have been refurbished and
handed back to the region for rental purposes. The
refurbishment of three major complexes earmarked
for Homeswest rental accommodation is now well
advanced. The 20 one-bedroom dwellings in the
complex known as “Nentoura” are nearing
completion and will be utilised for both aged and
singles accommodation. The 28 one-bedroom units
at 36 Walanna Drive are also undergoing an external
refurbishment, and works have commenced on the
16 three-bedroom villas next door at 38 Walanna
Drive.
The enhancement of infrastructure was also a priority
throughout the year. An attractive entry statement
was completed on the corner of Kent Street and
Jackson Road, providing a major entry point to the
Karawara New Living project area, and substantial
landscaping and fencing improvements were also
carried out.
Work on the new Karawara Community Centre along
Manning Road is now well underway. The City of
South Perth is coordinating the construction of this
new complex which will eventually replace the
existing facility on Walanna Drive. The Ministry has
contributed funds toward the new centre.

L ANGFORD
Project Manager - Voran Consultants
Work has now commenced on the five-year New
Living project at Langford, which is intended to
ultimately reduce the Ministry’s presence from 29 per
cent of all dwellings to just 12 per cent.
The Community Information Office opened in
September 1999 at 120 Langford Avenue. During the
year, five dwellings were refurbished and sold and a
further five were refurbished and retained for rental
purposes.
The upgrading and landscaping of the Spencer Road
and Langford Avenue entry was completed, with costs
shared with the City of Gosnells. The Brookman
Avenue/Nicholson Road entry statement was also
completed, providing a landscaped entry into the
project area.
A contract was let for the progressive demolition of
118 units in the “Wingrove Estate” precinct, which
will yield 109 new lots. Twenty five dwellings within
this precinct will also be upgraded for both sale and
retention.
The external upgrade for the Boogurlarri Community
House was also completed. This centre is utilised by
Aboriginal and other groups, and provides a focal
point for contact with the community.
A quarterly newsletter has also been initiated to
provide information on key aspects of the project to
all residents and key stakeholders.
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
A RMADALE / KELMSCOTT
Project Manager - McCusker Holdings / Satterley
Property Group
The three-year Armadale/Kelmscott project
commenced in June 1998 and involves the
refurbishment of approximately 115 dwellings for
sale and 100 for retention in Armadale, and
approximately 45 dwellings for sale and 25 for
retention in Kelmscott.
Since the project commenced, the Ministry has:
Refurbished, sold and settled 53 dwellings within
the project areas (including eight in Kelmscott).
Completed refurbishment works to “Glendale”
(formerly the “Nyanora” complex) on Fifth Road,
Armadale which consists of 24 x 2BR units for
sale.
Refurbished and handed back 40 dwellings for
retention by the Ministry.
Upgraded and beautified “Rotary Park” opposite
the “Berkdale” apartment complex.
Commenced work with the City of Armadale to
improve verges and parks in the Kelmscott area.
The first newsletter for the project was completed
during the year to keep residents and stakeholders
informed, and community development initiatives
included visits by Chris Lewis to schools in Kelmscott
and Armadale.
41

Land and
development
42
E ASTERN H ORIZONS
Project Manager - Midland Project Management
The “Eastern Horizons” project is the latest edition to
the suite of new Living projects. It involves the
redevelopment of parts of Midland, Midvale,
Swanview and Koongamia. It includes 350 dwellings
in Midland, 144 in Midvale, 119 in Koongamia and
41 in Swanview. Of the total 654 dwellings, it is
intended to refurbish and sell 240 dwellings,
refurbish and retain 366, and demolish 48.
The total estimated expenditure is some $15.7
million.
The Ministry approved the “Master Plan” for the
project in December 1999, and the City of Swan gave
its “in principle” support in March 2000. The City
has agreed to fund the cost of infrastructure works on
a 50/50 basis with the Ministry.
The first refurbishment batch consisting of six
properties to be sold on the open market commenced
in June 2000 and is due for completion in mid
August 2000. This includes the display house at
31 Hooley Road, Midland.
The 42-unit “Hynam Court” complex was demolished
in December 1999, with the resultant land to be
subdivided and sold.
A Taskforce has been created to discuss issues relating
to the Midland/Midvale revitalisation project. The
Taskforce meets once a month. A Community
Consultative Committee has also been formed to
discuss community development issues.
R EDEVELOPMENT
New Living also incorporates suburbs in which
public housing stock does not predominate, which
are well located in terms of proximity to the city and
essential services, but which have ageing dwellings.
The redevelopment of these areas involves a mix of
sales, demolition and re-subdivision. Financial
advice favours selling properties on an “as is” basis in
the majority of cases. Re-subdivision is undertaken
to enable construction of new rental dwellings or
where there is a financial advantage in changing the
lot sizes and configuration.

Projects are proceeding in Scarborough, Doubleview,
Innaloo, East Victoria Park, Bentley, St James,
Redcliffe, Bedford, Como, Glendalough, Manning,
Willagee, Rivervale, Ashfield, and Hamilton Hill.
During 1999/2000, interest in both land and houses
slowed under the influence of higher interest rates
and the GST, however, 411 dwelling unit equivalents
were produced at a cost of $5.50 million. This is
compared to a budget of 487 dwelling unit
equivalents at a cost of $6.33 million.
O UTLOOK 2000/2001
In 2000/2001, the New Living Program will continue
with a refurbishment budget of $27.63 million and a
sales budget of $42.86 million (546 sales).
A land development budget of $7.68 million (102
lots) and associated land sales budget of $16.86
million (249 lots) is planned. A redevelopment
budget of $5.24 million to produce 347 DUEs with
budgeted sales of 164 lots for $15.12 million is
planned. Redevelopment will continue in Willagee,
Hilton, Como and Redcliffe. In addition, private
sector project managers have been engaged to
manage projects in Geraldton and Albany.
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
RENTAL SALES PROGRAM
R ENTAL S ALES
A major focus of the Ministry is to help people,
especially tenants, into home ownership. Two
schemes have been developed – the Right to Buy
scheme, which enables tenants to buy their own
property outright with discounts of up to $20,000 for
long-term tenants, and the Goodstart scheme, which
helps tenants buy a share of their home in
partnership with Keystart.
This year, 235 Right to Buy and Goodstart applicants
bought their homes for a total of $19.80 million,
compared to a budget of 256 sales for $21.40
million. Under Right to Buy, a total of 2049
properties have been sold to tenants since the scheme
commenced.
Vacant properties considered by Homeswest to be
either surplus to requirements or of extremely high
value were also sold. In all, 153 sales for $19.93
million occurred, compared to a budget of 124 sales
for $11.32 million.
Funds realised from these sales programs are
reallocated to the construction of new Homeswest
rental housing.
O UTLOOK 2000/2001
In 2000/2001, it is planned to sell 256 properties for
$21.4 million to tenants and 142 vacant properties
for $14.29 million.
43

44
O UTCOME:
L AND FOR S ALE TO W ESTERN A USTRALIANS ON L OW TO M ODERATE
I NCOMES AND FOR THE M INISTRY’ S R ENTAL P ROGRAM.
LAND OUTPUTS 1999/2000
Q UANTITY & COST
Actual Target
Land Development
Broadhectare
Lots developed 176 329 Reduced land development in response to market
Expenditure $4.32m $8.15m conditions.
New Living (Estates Improvement)
Lots developed 186 234 Reduced land development in response to market
conditions.
Expenditure (incl infrastructure) $5.95m $12.45m Expenditure is net of $4.05m allocated to rental
business unit.
New Living (Redevelopment)
DUES developed 411 487 Delays due to planning and tenant relocation
Expenditure $5.50m $6.33m issues.
Joint Venture
Lots developed 710 585 Variance mainly due to method of reporting yields,
Expenditure $10.82m $11.88m now including the joint venture portion.
Land Sales
Broadhectare & Redevelopment
Lots sold 760 772 Reduced land sales due to market conditions but
Income $57.28m $52.15m more land was sold in redevelopment areas which
provided significantly more income overall.
New Living (Estates Improvement)
Lots settled 205 228 Reduced land sales in response to market
Income $15.06m $15.53m conditions however significantly higher prices
were realised than anticipated.
Joint Venture
Lots sold 441 462 Reduced land sales in response to market
Income $12.85m $17.67m conditions. (Method of reporting yields now
includes joint venture portion).
Rental Property Sales
New Living 455 546 Reduced sales reflect local market conditions.
$38.46m $41.90m
Right-to-Buy 235 256
$19.80m $21.40m
Vacant Property 153 124 Higher sales reflect market conditions and higher
$19.93m $11.32m prices were realised in more established areas.
Refurbishment $30.00m $21.21m More rental properties became available through
tenant relocation.
1996/1997 1997/1998 1998/1999 1999/2000
Management Costs as a %
of Land Program
Administration 4.85% 5.7% 4.35% 5.86%
Consultant Fees 10.69% 12.63% 14.47% 9.94%
Selling Expenses 7.77% 6.45% 5.68% 7.84%
For further information refer to Performance Indicator 3.2.

T IMELINESS & QUALITY
There is no waiting list for land sold, all land is sold
by public treaty or through auctions and is based on
demand and market conditions. Land development
programs are adapted to meet market conditions.
A customer survey is being developed.
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
45

( )
The Ministry, through Homeswest, provides rental accommodation, rental subsidies and various structured
support programs for thousands of families on low to moderate incomes.
Rental Housing
46
Robin Wood
State Manager Rental Services
At June 30, there were 38,556 Homeswest rental
properties throughout the State. The waiting list was
12,879 people, compared to 14,326 at the same time
last year.
H IGHLIGHTS
The waiting list for rental housing was reduced
by 1,447 people compared to last year.
A total of $39.44 million was spent on
maintenance and improvements to rental
properties.
The Ministry provided on-site and telephone
interpreter services to assist customers from
culturally and linguistically diverse and
indigenous backgrounds.
Homeswest continued to work with a range of
agencies to assist tenants having difficulty with
the day-to-day management of their tenancies.
The Ministry spent $1 million on the Supported
Housing Assistance program (SHAP).
The Ministry commenced a refurbishment
program to upgrade its older properties, with
255 properties upgraded at a cost of $4 million.
Improved information provision to tenants with
the introduction of quarterly rental account
statements and a tenant newsletter.
Completion of a review of the highly successful
Manguri Supported Accommodation Program.
Craig Hills
Regional Manager
Kimberley
(Broome)
Bruce Fouracres
Regional Manager
South East Metropolitan
(Cannington)
Jenny Nobbs
Regional Manager
South West
(Bunbury)
Murray Emery
Regional Manager
South Metropolitan
(Fremantle)
Attila Mencshelyi
Regional Manager
Central
(Kalgoorlie)
Shane Edmonds
Regional Manager
North Metropolitan
(Mirrabooka)
Allan Fletcher
Regional Manager
Mid-west Gascoyne
(Geraldton)
Diane Blade
Regional Manager
Pilbara
(Port Hedland)
Don Hooper
Regional Manager
Southern
(Albany)

M INISTRY OF H OUSING 2000 ANNUAL R EPORT
47

Rental Housing
48
C USTOMER S ERVICE
Homeswest placed great emphasis this year on
improving the quality of customer service to its
tenants and potential tenants. Comprehensive
training in customer service skills, PC and mainframe
computer skills was provided to frontline staff in the
regions to ensure they have the requisite knowledge
and skills to provide a responsive and quality service
to all clients.
Homeswest’s emphasis remains on maintaining
successful tenancies. To support this, the
organisation continues to work in partnership with
other government and non-government agencies to
continue programs specifically focused on supporting
tenants to develop skills that enable them to pay their
rent, maintain and care for their properties and
reduce anti-social behaviour.
The Ministry has actively participated in inter-agency
collaboration through the three levels of the Safer WA
initiative and local reference groups to provide a
more coordinated service to tenants. Senior staff
from the Ministry are represented on these
committees, ensuring better understanding of what
the community wants both from the public and
private sectors. Local action groups are also working
with Homeswest to develop their suburbs/towns for
the betterment of the community.
R ENTS
During 1999/2000, no tenant was required to pay
more than 25 per cent of their assessable household
income in rent, and the majority paid 23% or less.
In total, 27,752 (84.4%) of households received
rental subsidies.
Rents charged to tenants are determined from time to
time by the Commission and approved by the
Minister for Housing under Section 30 of the
Housing Act 1980. In 1999/2000, Homeswest
continued to charge market rents structured on the
basis of regional rental markets. Market rents are
reviewed annually and Homeswest this year moved to
a system of market rents established by the Valuer
General’s Office.
In July 1997, under the Commonwealth and State
Housing Agreement, Homeswest began charging
tenants who moved into their properties a rent
amounting to 25 per cent of the assessable household
income. From February 2000, tenants who had been
charged at a lower base rate moved up to a rate of
23 per cent.

Homeswest tenants on a rental subsidy have their
rent reviewed on the anniversary of their moving into
the property or at any time they have a change in
their income of more than $10 per week.
WAITING L ISTS
Homeswest this year made good progress in reducing
its waiting list for rental accommodation.
The waiting list at June 30, 2000 was 12,879 people,
compared to 14,326 at the same time last year. This
represents a reduction of 1,447 people.
The improvement was brought about by better
management of waiting list applications, ensuring
applicants were still income eligible for public
housing. The purchase of 303 properties under the
spot purchase program and 948 new construction
properties coming on line (including a 200-unit
supplementary program for priority applicants) also
contributed to the improvement. The New Living
program also returned 236 refurbished properties for
rental accommodation in the metropolitan area and
79 in country areas.
During the year, Homeswest assisted 4472 applicants
to enter rental housing.
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
M AINTENANCE
Maintenance is carried out regularly on all
Homeswest rental properties, either on a day-to-day
basis or when the property is vacated.
A total of $39.44 million was spent on maintenance
and improvements to rental properties during
1999/2000. This was made up of:
$16.48 million on day-to-day maintenance;
$7.56 million on maintenance of vacated
properties;
$7.50 million on improvements such as heating,
ceiling fans, smoke alarms, disability fittings and
fences;
$4.98 million on planned maintenance which
includes internal and external painting; and
$2.92 million on maintaining the grounds and
gardens at housing complexes.
In addition to these amounts, it cost Homeswest
$3.419 million to renew or replace damaged items
through its insurance funding. While this was
significantly more than last year’s expenditure of
$2.930 million, the increase in the insurance fund
spending was due to the effects of Cyclone Vance at
Exmouth, Moora floods (twice) and Cyclone Rosita at
Broome.
The smoke alarm program is a five-year program,
which commenced in 1997/98 and aims to see every
dwelling fitted with at least one smoke alarm by June
2002.
49

Rental Housing
50
Homeswest has also commenced a refurbishment
program to upgrade its older properties, and this year
spent $4 million on the refurbishment of 255
properties. This work is undertaken by contractor
builders and managed by contract superintendents.
Maintenance contracts were re tendered this year.
The tenders expired on 31 December 1999, but were
extended to June 2000 to enable the new contracts to
begin on 1 July 2000 to coincide with the
introduction of GST.
S UPPORTED H OUSING PROGRAMS
Homeswest continued to work with a range of
agencies to assist tenants who are having difficulty
with the day-to-day management of their tenancies.
In 1999/2000, Homeswest spent approximately
$1 million on the Supported Housing Assistance
Program (SHAP). Eight agencies received funding to
run 12 different programs under SHAP, with a total of
14 workers employed to assist families in all nine
Homeswest regions.
Many families have multiple issues that effect their
tenancies, including non-payment of rent, property
standards and anti-social behaviour. A high portion
of these tenancies are saved by these partnership
arrangements with community support agencies.
In addition, Homeswest continued to work with the
Department of Family and Children’s Services to
provide family support programs to a large number of
tenants whose tenancies may be in jeopardy for a
myriad of reasons, including tenancy and family
issues.
The combination of these programs is assisting in
reducing the number of failed tenancies and the need
for seeking emergency relief from Government or
community-based agencies.
During the year Homeswest also headleased 15
properties across the three metropolitan regions to
Manguri Incorporated, an Aboriginal organisation
that provides family support including advocacy and
home maintenance under its Supported
Accommodation Program.
H OUSING FOR YOUTH
Homeswest continued to work in partnership with
Anglicare, Fremantle Community Youth Services and
the Rockingham Youth Accommodation Program to
provide housing support for young people.
The three schemes supported by Homeswest this year
were YES Housing (Youth Externally Supported
Housing) in the Mirrabooka and Cannington regions,
and FRESH and RYEAP (Fremantle Regional
Externally Supported Housing and Rockingham
Youth External Accommodation Program) in the
Fremantle region.

The schemes cater for youth in need, including
young single mothers, helping them to obtain
affordable housing throughout the metropolitan area.
The agencies manage the tenancies until the tenants
are able to live independently. Many of these tenants
go on to become mainstream Homeswest tenants.
Homeswest provides housing for the youth schemes,
while the Department of Family and Children’s
Services provides funding for the management
services.
The agreed number of youth able to be housed under
the program is presently 105 people, including
Fremantle (20), Cannington (35) and Mirrabooka
(50). However, the Ministry recognises that demand
outstripped supply on a number of occasions during
the year, and the agreed numbers are now being
reviewed to increase the units available to those
people in need.
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
R EGIONAL C USTOMERS
Homeswest is committed to providing equitable
services to its country clients, as part of the State
Government’s recently launched Regional
Development Policy. Homeswest has six country
regional offices based in Broome, South Hedland,
Geraldton, Bunbury, Albany and Kalgoorlie, and a
number of branch offices located in larger rural towns
to assist in servicing rural communities.
The Internet Home page is bridging the gap and
assisting in meeting the regional customer needs with
information and forms being available on-line. The
information includes rental and maintenance policies,
how to apply for rental accommodation and bond
assistance, home ownership options, assisting people
with disabilities and Tenants Newsletter.
Homeswest through its involvement in many
inter-agency programs and being represented on
committees such as SaferWA, Regional Domestic
Violence Committee and Joint Venture/Seniors
Groups continues to promote services and develop
community networks in regional areas. Being
involved on local committees helps Homeswest to
identify the specific needs applicable to rural towns,
such as more accommodation for seniors, safe houses
for women and children due to domestic violence
and family accommodation.
51

Rental Housing
52
C ULTURALLY AND L INGUISTICALLY
D IVERSE (CALD) SERVICES
Homeswest seeks to ensure that language is not a
barrier to service for people who require assistance in
English. Customers from culturally and linguistically
diverse and indigenous backgrounds make up a large
percentage of Homeswest’s tenants.
On-site interpreter services are provided to the three
metropolitan regions to ensure there are no
impediments for customers from culturally and
linguistically diverse and indigenous backgrounds.
The telephone interpreter service is also utilised on
an as needs basis for customers including those in
country regions.
The TTY service is also available to assist clients with
hearing impairment to understand the range of
services offered and the legal rights and obligations
attached to a service.
A review of the present on-site interpreter services
saw the inclusion of a Somalian interpreter at the
Mirrabooka regional office this year.
Since 1997, Homeswest has recorded data on
applications for rental assistance giving the country of
birth, year of arrival in Australia and the main
language spoken at home. This together with
Homeswest’s representation on the State Settlement
Planning Committee assists in the planning of
building programs and assessing the needs of various
ethnic groups with housing requirements.
Homeswest continues to provide training to staff on
Cultural Awareness and has a Cultural Services Policy.
All Homeswest letterheads have information in 16
languages on the reverse. The information advises
clients of the interpreter/translator service. The total
cost of providing the on-site and telephone
interpreter service was $38,376 in 1999/2000.

P OLICY I NFORMATION
Homeswest has throughout the year conducted
ongoing review and updating of its policies. This
included its policies for Waiting List Management,
Appeals Mechanism, Emergency Housing,
Discretionary Decision Making and Allocation.
Policies are there to assist staff in their decision
making and to help customers understand and know
their rights and responsibilities. They must be seen
to be fair and equitable and in line with current
trends on public housing and its services, with an
emphasis on “common sense” decision making.
This year also saw the introduction of a Rental
Services Policy Sub-Committee, reporting to the
Housing Advisory Committee. The committee
includes representation from Shelter WA, Community
Housing Coalition WA, Tenants Advice Service,
Regional Representative (country), Aboriginal
Representative and Ministry of Housing. The
committee’s role is to oversee the process for policy
review, which includes input from community-based
organisations, advocacy groups and support agencies.
Homeswest has comprehensive policy and procedure
manuals, and during the year, its rental and
maintenance policies were put on the Ministry’s
Internet site. This has enabled the public to access
policy information more readily, and kept people
informed of policy changes and updates immediately.
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
A PPEALS
The Homeswest appeals mechanism is a three-tier
process which provides an avenue for clients to
appeal an adverse decision.
All decisions which are adverse to the client are
reviewed at Tier 1 in the appeals process by another
Homeswest officer not involved in the original
decision-making process.
There was a slight reduction over the year in the total
number of appeals lodged at tier 2, reducing from
1,970 in 1998/99 to 1,841 in 1999/2000. This
follows similar reductions over the past three years,
indicating that Homeswest staff are increasingly
making correct decisions in the first instance.
Ineligible appeals for the year totalled 185, a slight
increase on the previous year’s figure of 149.
Of the 1,328 decisions made at Tier 2, 432 (32.9 per
cent) were upheld, 200 (15.5 per cent) partially
upheld and 679 (51.6 per cent) dismissed. These
figures are similar to those of the previous year in
which 32.5 per cent were upheld, 14.1 per cent
partially upheld and 53.4 per cent dismissed.
The Public Housing Review Panel (tier 3 in the
process) received a total of 244 appeal review
requests of which 13 were ineligible. The Panel
determined 224 appeals, 169 (75.5 per cent) being
dismissed, 51 (22.8 per cent) being upheld and 4
(1.7 per cent) being partially upheld. These figures
also bear a marked similarity to the 1998/99 financial
year where 221 appeals were determined, 165 (74.6
per cent) being dismissed, 48 (21.7 per cent) being
upheld and 8 (3.6 per cent) partially upheld.
53

( )
Housing
Procurement
54
In order to provide suitable public rental accommodation across the State, the Ministry of Housing
manages an extensive housing procurement program.
Graeme Jones
Director Housing Procurement
Graeme Jones joined the State Housing
Commission in 1977, and has wide experience
across the State in both regional operations
and land development.
His current role was created in the new
Ministry of Housing, and he took up his
appointment in September 1999.
This includes building new homes on Homeswest
land or land owned by joint venture partners, and
acquiring land or completed house-and-land
packages in areas where high rental demand exists.
H IGHLIGHTS OF THE Y EAR
Commenced construction on 1748 dwellings, of
which 1255 were for the general rental, joint
venture and New Living programs. The
remaining 493 were composed of Aboriginal and
Community Housing construction and bedsitter
conversions, and included the major
refurbishment of 255 older properties Statewide.
Provision of 34 mobility units for tenants with
disabilities in the general rental program.
Commencement of 75 Joint Venture units for
aged, single and family accommodation
Completion of 3 pilot seniors housing projects at
Bentley, Mandurah and Tuart Hill designed to
demonstrate best practice in affordable housing
for seniors over 55 years.
O VERVIEW
In 1999/2000, 1408 units of accommodation were
completed or purchased in the combined Homeswest
main rental program, the Community Housing
program, and the Aboriginal Housing Program at a
total expenditure of $140.73 million.
Of the units commenced in the Homeswest main
rental program, 391 units or 31 per cent were for
seniors, 735 or 59 per cent were for family
accommodation and 129 or 10 per cent were for onebedroom
households for people aged 18 to 54 years.

M INISTRY OF H OUSING 2000 ANNUAL R EPORT
55

Housing
Procurement
56
R EGULAR C ONSULTATION
To achieve its objective of low-cost, high quality
rental accommodation, Homeswest enters into regular
consultation with housing industry groups such as
the Housing Industry Association and the Master
Builders’ Association, and professional associations
such as the Royal Australian Institute of Architects.
Project management of housing procurement relies
on the private sector providing efficient, high quality
services. Homeswest continually seeks to improve its
housing designs and housing amenity by asking for
client feedback on completed projects.
S POT P URCHASE P ROGRAM
During the year, an intensive effort was directed to
assisting clients who needed to live in areas where
construction opportunities were limited due to a lack
of available land. 360 houses were purchased across
the Homeswest main rental, Aboriginal Housing and
Community Housing programs in suburbs such as
Wanneroo, Greenwood, Hamersley, Morley,
Joondalup, Duncraig, Bullcreek, Kardinya and Halls
Head. 303 of these properties were for the
Homeswest main rental program.
The 360 properties were purchased at a total cost of
$40. 90 million, of which $36.65 million was for the
Homeswest main rental program. Of these, 38
properties in the main rental program were purchased
for clients accessing the Community Disability
Housing Program (CDHP). Additionally, one
property was a joint venture project with the Midway
Community Care Agency.
Properties were also acquired in major country towns
to address shortages of land.
The spot purchase program enables the Ministry of
Housing to continue its aim of distributing ownership
more evenly through the community rather than in
heavily identified pockets.
S TOCK R EPLACEMENT P ROGRAM
This initiative replaces aging stock in small country
towns, to the benefit of Homeswest residents and the
local economy. During the year, 32 dwellings were
commenced.
Towns benefiting from the program included
Northam and Wundowie (Shire of Northam),
Denham (Shire of Shark Bay), Wongan Hills (Shire of
Wongan-Ballidu), Donnybrook (Shire of
Donnybrook-Balingup) and Denmark (Shire of
Denmark).

J OINT V ENTURE P ROGRAM
Joint Venture housing projects (referred to as joint
charity projects in the financial statements) are
undertaken with non-profit organisations and church
groups to provide additional housing options in local
communities.
During the year, 79 joint venture projects were
completed and construction began on 74 units, with
one unit spot purchased at Hall’s Head. Of these
completed units, 22 were for resident-funded joint
venture projects. This included Amaroo Retirement
Village, Gosnells (6 units), and Australian Pensioners’
League, Balcatta (two sites of 8 units each).
Other notable joint venture projects commenced
included:
Rockingham – 15 units with Fremantle Housing
Association
Kalgoorlie – 9 units with Goldfields Aged
Pensioners Welfare Association
Wyalkatchem – 8 units with Wyalkatchem Shire
Nungarin – 6 units with Shire of Nungarin
Albany – 4 units with ACTIV Foundation
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
P ILOT H OUSING P ROJECTS FOR
S ENIORS
Three pilot seniors housing projects designed to
demonstrate best practice in affordable housing for
seniors over 55 years were completed in 1999/2000.
All three projects are based on the Ministry’s 1998/99
Aged Persons Units Design Brief, plus
recommendations from the Seniors Housing
Reference Group and Health Department’s “Stay On
Your Feet – prevention of falls, safe environment”
campaign.
21 units were built at three group housing sites in
Tuart Hill, Bentley and Mandurah.
The design features incorporated in the construction
recognised many of the unique characteristics of an
aging population. The units have no steps, the
outside paving goes right to the door and trip hazards
have been eliminated throughout. For example, the
bathrooms feature an innovative sloping gradient into
the shower, rather than the traditional brick-high hob
in the shower recess. There are also no floor-level
power points, the benchtop corners have been
rounded and doorways and passages are wider than
usual.
57

Housing
Procurement
58
S AFETY A UDITS OF B UILDING
S ITES
The Ministry continued its commitment to safety in
the workplace by funding the Master Builders’
Association to carry out safety audits on Ministry
construction sites across the Perth metropolitan area.
N EW C ONSTRUCTION
Some of the notable projects that commenced
construction this year under the Homeswest main
rental program were:
Metropolitan Regions
Seniors development at Lancely Way, Mirrabooka
in a subdivision developed by Landstart.
Single persons development at Arnold Place,
Balga, on land subdivided through the New
North New Living program.
Seniors development at Jean Street, Hamilton
Hill.
A development for families in McGregor Street,
Palmyra.
Seniors development of 36 units in Almond
Place, Shoalwater.
Group housing mix (for families and seniors) at
Love Street, Cloverdale.
Country Regions
Seniors development at Parker Street, Albany.
Single persons development at Paisley Street,
Bunbury.
Seniors development at Hicks Street, Esperance.
A development for families at Gertrude Street,
Geraldton (from land made available through
redevelopment of old rental stock).
Single persons development at Galbraith Road,
Karratha.
Family development at Delewarr Street, Derby.

O UTLOOK FOR 2000/2001
During 2000/2001, the Ministry plans to construct,
purchase or refurbish 1687 housing units including:
801 general units.
69 units in the New Living areas of Koongamia,
Lockridge, Coolbellup, Parmelia, Armadale,
Karawara and Langford.
80 units for the Community Disability Housing
Program.
40 units for Stock Replacement to country towns.
78 joint venture units with charitable and church
groups.
116 Aboriginal Housing units.
170 units for the Community Housing and the
Crisis Accommodation Program.
304 refurbishments of existing dwellings.
29 refurbishments of existing bedsitting room
dwellings.
A significant number of dwellings will continue to be
purpose-built to assist people with disabilities, and
seniors.
Redevelopment will again feature prominently, as will
construction on land made available through the New
Living Program in areas such as Balga (New North)
and Armadale.
Construction, spot purchase and refurbishment
activities for the Homeswest main rental program will
cost $94.799 million to commence 1401 units and
complete 1446 units of accommodation.
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
Across all programs including Homeswest main
rental, Aboriginal Housing, Community Housing and
inclusive of construction, spot purchase, bedsitter
conversions and refurbishments, 1687 units will be
commenced and 1710 completed at a cost of $145.88
million.
M INOR W ORKS
Homeswest performed minor works upgrades of
selected rental properties for a total of $2.879 million
(excluding Aboriginal Housing upgrades). Notable
minor works projects in 1999/2000 included:
Completion of a second stage of bedsitter
conversions at Allambi, Hilton, creating 8 units
from 16 bedsitters.
Completion of 6 units (converted from 10
bedsitters) at Wotana apartments in East Victoria
Park.
The extension of 3 existing bedsitters to create 3
one bedroom units in Boundary Road, Mandurah.
Completion of upgrades to units at Anabar Road,
Beechboro and Hearn Place, Carnarvon.
Upgrade of 29 houses in the Bedford
redevelopment precinct and 8 houses in the
Como redevelopment area.
Commencement of a joint venture project with
the Town of Port Hedland to convert 21
bedsitters in Stevens Street, South Hedland to one
bedroom seniors units.
59

Housing
Procurement
60
The main component of the minor works program is
the conversion of Homeswest’s bedsitter assets. This
involves altering existing units to create more tenable
forms of accommodation. This can be done either by
combining existing units to create a separate bedroom
with separate living area, or adding additional floor
space to an existing unit where sufficient land is
available. This approach is an important aspect of
Homeswest’s apartment strategy.
O UTLOOK FOR 2000/2001
In the minor works program, $2.99 million has been
allocated for upgrade works at such locations as
Wandana Flats in Subiaco, Stirling Towers in
Highgate, Talbot Lodge in Carlisle, Collier Flats in
Como and the Allambi complex in Hilton.
Additionally, there will be further upgrades of homes
in the redevelopment areas of Bedford and Como.
It is planned to convert a further 29 bedsitter units at
a total cost of ($465,000 of the above allocation) in
the following areas:
Nollamara
Albany
Bunbury
Merredin
Northam
Spalding (Geraldton).
Under the refurbishment program, 304 units are to
be commenced across the state, at an estimated cost
of $3.590 million.
H OUSING AWARDS
Ministry construction projects won several awards
during the year, including:
1999 HIA ANZ-Town & Country Bank Great
Southern Housing Awards:
Winner (Southern) HIA: Cockburn Road, Albany.
1999 HIA ANZ-Town & Country Bank South West
Housing Awards:
Winner (South West) HIA: Waverley Road,
Cowaramup.
1999 HIA ANZ-Town & Country Bank Perth
Housing Awards:
Winner (Metro) HIA: Cnr Celadon Loop &
Reseda Elbow, Neerabup.
Winner (Metro) HIA: Stockman Way, Cannington.

M INISTRY OF H OUSING 2000 ANNUAL R EPORT
1999/00 CONSTRUCTION & SPOT PURCHASE PROGRAM
PROGRAM COMMENCE- COMPLETIONS EXPENDITURE CARRYOVER CARRYOVER
MENTS ($M) COMPLETIONS EXPENDITURE
($M)
HOMESWEST RENTAL PROGRAM
CONSTRUCTED 878 817
PURCHASED (RENTAL) 302 302
CONSTRUCTED (JOINT VENTURE) 74 78
PURCHASED (JOINT VENTURE) 1 1
PROGRAM TOTAL 1,255 1,198 112.78 1143 78.38
ABORIGINAL HOUSING
URBAN PROGRAM
CONSTRUCTED (RENTAL) 32 45
PURCHASED (RENTAL) 8 8
PROGRAM TOTAL 40 53 7.60 42 3.16
ABORIGINAL HOUSING
REMOTE PROGRAM
PROGRAM TOTAL 33 46 7.85 12 2.19
COMMUNITY HOUSING PROGRAM
COMMUNITY HOUSING 83 80 65 3.833
CRISIS ACCOMMODATION 33 31 12 1.36
PROGRAM TOTAL 116 111 12.5 77 5.195
TOTAL 1,444 1,408 140.73 1,274 88.93
1. NOTE: THE ABOVE FIGURES DO NOT INCLUDE CAPITALISED ADMINISTRATION
2. NOTE: THE ABORIGINAL HOUSING REMOTE PROGRAMME EXPENDITURE INCLUDES CONSTRUCTION ONLY.
61

( )
The Ministry of Housing provides various programs to help community organisations provide housing for
people who need support to live independently.
Community
Housing
62
Jeff Mould
Manager Community Housing
This includes seniors, people with disabilities and
others with special needs. The Ministry also provides
assistance to modify homes and improve housing
access for people with disabilities.
H IGHLIGHTS
Acquisition of a 19 bed lodging house in East
Perth.
Provision of 57 units for seniors.
Provision of 443 units for people with disabilities.
Provision of 10 units for youth.
Provision of 10 units for people escaping
domestic violence.
Provision of 101 units in rural areas.
Provision of two respite homes for adults with
disabilities.
A BOUT C OMMUNITY H OUSING
The Ministry’s community housing programs help
thousands of people to access accommodation
managed by community groups including churches,
local government, aged care providers and housing
associations and cooperatives. The Ministry works in
partnership with the organisations to provide this
accommodation. At June 30, a total of 3009 units
were managed by community agencies.
Community housing is provided on a non-profit basis
as an alternative to mainstream housing. It includes
features such as strong links to local support
networks for people with special needs, and
consultation with clients in the design and
management of their housing.
C OMMUNITY H OUSING P ROGRAM
(CHP)
The Ministry provides for the purchase or
construction of long-term rental accommodation to
be managed by non-profit community organisations
and local governments. A portion of CHP funds is
also set aside to fund community sector infrastructure
such as the development and delivery of training and
information resources, and community housing
associations.
During the year, 80 new accommodation units were
completed across the State, including 13 units for
people with disabilities to live independently in the
community.

M INISTRY OF H OUSING 2000 ANNUAL R EPORT
63

Community
Housing
64
C RISIS A CCOMMODATION
P ROGRAM (CAP)
The Ministry provides capital funds for non-profit
community organisations to purchase, construct or
lease accommodation to provide short-term assistance
to people who are homeless or facing a housing crisis.
During the year, CAP provided 31 new units to assist
people in housing crisis.
J OINT V ENTURE H OUSING
P ROGRAM ( JVHP)
The Joint Venture Housing Program (referred to as
joint charity projects in the financial statements)
brings together community assets (including land,
cash and in-kind services) and Homeswest funds and
expertise, to enable local governments or community
organisations to construct or purchase long term
rental housing. During the year, 57 units were
completed. More than $1.4 million in cash
contributions was received, with all funds redirected
into community projects.
C OMMUNITY D ISABILITY H OUSING
P ROGRAM (CDHP)
The Ministry works closely with the Disability
Services Commission (DSC), the Health Department
of WA and community housing organisations to
provide appropriate and secure housing for people
with a wide range of disabilities. The Ministry
provides the housing, the DSC or Health Department
provide funding for the support needs of the clients,
and the community organisations are responsible for
the delivery of property and tenancy management
services. Tenants must be people with a disability
who meet income and other eligibility criteria for
public housing.
The CDHP provided 91 units during the year all
managed by community organisations. Of these, 50
units were provided to people with a psychiatric
disability.
In September 1999, a review of the Community
Disability Housing Program was completed and the
Ministry is currently working through the
recommendations. The review assessed and
confirmed the effectiveness and efficiency of the
program in terms of increased access for people with
a disability to appropriate and affordable rental
housing. It also examined and confirmed how well
the people assisted under the program are supported
to maintain their tenure in the community.

A CCOUNTABILITY AND
M ONITORING
To improve the accountability and monitoring of
community housing projects, operational guidelines
were implemented by the Ministry to review
community agencies in terms of their management
processes. This process includes annual inspection of
all community housing properties.
The guidelines set established benchmarks for
maintaining property and providing tenancy and
financial management information, and are designed
as a self-help guide to assist community housing
providers develop effective management practices.
The Ministry uses the guidelines when conducting
cyclical organisational reviews of community housing
providers.
1000 units were reviewed during the year.
P URCHASE OF L ODGING H OUSE
In January 2000, the Ministry in conjunction with
City Housing purchased a 19-bed lodging house in
East Perth. The purchase of this facility will assist
with housing single homeless people who prefer to
live in the inner city areas of Perth.
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
C OMMUNITY H OUSING P OLICY
In February 2000, the Ministry launched a
community housing policy manual to provide
important information about community housing
programs in one easy-to-read document for both the
sector and community housing staff. This is the first
time such a document has been available to assist
outside groups with the application and approval
process.
The manual outlines the Ministry’s different
community housing programs, including crisis
accommodation, community housing program,
housing for people with disabilities, and joint
ventures. It covers the funding application and
approval process, eligibility, legal agreements,
reporting and accountability, rents and project
management. This policy document is available on
the Ministry’s Internet site.
R EGIONAL H OUSING
A SSOCIATIONS
The Ministry continued to support the promotion
and growth of regional housing associations across
the State. This included the provision of funds to
assist with the establishment of two new community
housing associations: Northside Housing Association
based in the Wanneroo area and the Great Southern
Regional Housing Association in Albany. In addition,
the Ministry continued to support established
associations in the Inner City, East Metropolitan,
Fremantle, Peel and South Metropolitan regions.
65

Community
Housing
66
Regional Housing Associations (RHA’s) are
community managed non-profit organisations that
incorporate the philosophies of community managed
housing, but also have the necessary skills to provide
a professional property management focus.
In total, $424,000 was provided to regional housing
associations during 1999/2000.
D ISABILITY S ERVICES
During the year, the Ministry spent $18.87 million to
provide 443 homes to individuals and families of
people with disabilities through its Access Home
Loan Scheme, community housing programs,
mainstream housing, and construction and spot
purchase programs for people with disabilities.
The 443 units included construction of 75 new
purpose built mobility homes and the purchase of 38
homes from the private market for people with
disabilities. These homes were provided for
individuals and families in mainstream rental
accommodation, the Community Housing Program
and the Community Disability Housing Program.
The Access Home Loan Scheme provided $5.7
million to assist 72 individuals and families to
purchase or build homes. Customers who need to
modify or purpose build a home to meet their
disability needs can access a free architectural design
service.
I NFORMATION D ISSEMINATION
During the year, Ministry staff provided information
to people with disabilities, their families and carers,
professionals in the disability sector and members of
State Government agencies on the diverse range of
housing options available to accommodate people
with disabilities.
The Ministry is a member of a number of working
committees overseeing the policy development and
implementation of housing strategies and outcomes
for people with disabilities. Some of these
committees include:
ACROD’S Acquired Brain Injured Interest Group.
The Health Department’s Stay on your Feet –
Prevention of Falls “Safe Environment”
committee.
North Metropolitan Health Region Non-
Government Organisation and Joint Group
Committee.
Housing Officers Group – which partners with
the Mental Health Division of the Health
Department of WA to oversee the policy and
operational delivery of accommodation and
supports for people with mental illness.
Ministry of Housing and Disability Services
Commission Accommodation Committee.

M ODIFICATIONS
In 1999/2000, the Ministry spent almost $.5 million
on modifications to existing housing stock to meet
the needs of people with disabilities. This included
modifying bathrooms to make them accessible for
people with mobility difficulties, installation of
grab-rails, modified kitchens, level entry thresholds at
doorways and in some instances additional bedrooms
or living space to cater for the needs of those with a
disability or their carers.
When a home cannot be modified to meet the
particular disability needs of a tenant, the Ministry
will purpose-build a home to satisfy the tenant’s
needs
M ENTAL H EALTH T RAINING
The Ministry recognises that it must have a workforce
that is fully aware of the issues and difficulties
confronting people with disabilities in accessing and
retaining their accommodation. During the year, the
Ministry, jointly with the Health Department of WA,
conducted Mental Health Training courses to
highlight these issues and provide housing
management strategies for staff to improve their
customer service to people with disabilities.
The Ministry of Housing also provides on the job
training through its Managers and Occupational
Therapist to raise awareness of housing needs of
people with disabilities.
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
O CCUPATIONAL T HERAPIST
S ERVICE
The Ministry’s occupational therapy service contract
was reviewed and re-let during the year. The
successful tenderer was Design for Independence.
The occupational therapists provide a number of
important services, including the assessment of
applicants for purpose-built or modified mainstream
housing or housing transfers.
They provide on-the-job assistance with staff queries
on disability, have input into general design briefs
and post occupancy evaluations, and will next year
provide further staff training sessions on disability.
The occupational therapists also play an important
role in the design of group homes for people with
disabilities, such as the Brightwater homes for young
people with Acquired Brain Injury and Nulsen
Haven’s deinstitutionalisation projects. This year the
Occupational Therapist Service had extensive
involvement in the Seniors Housing Project and the
Health Department’s Stay on Your Feet campaign
which incorporated a range of design features in
various housing projects to remove trip hazards and
assist with overall housing access and mobility.
67

( )
Homeswest offers bond assistance as an interest-free loan to help people obtain accommodation
in the private rental market.
Bond Assistance
68
Peter Lonsdale
Manager Bond Assistance
The loan is repaid in regular payments of at least
$10 per fortnight. Applicants must meet public
housing income and asset limits and should be
16 years or over.
Applicants can call into any Ministry of Housing
office (no appointment is necessary) and their
application will be processed immediately. Once
approved for bond assistance, Homeswest confirms
this immediately with the landlord and arranges for
prompt payment of the bond. Levels of assistance
range from $200 for a shared-single, up to $620 for
a family with four or more dependent children.
The scheme remains very popular with customers
and the private real estate industry. Performance
highlights of the scheme during 1999/2000 include:
A total of 14,226 loans valued at $4.6 million
were approved.
Loan repayments made by clients during the year
totalled $4.35 million.
56 per cent of loan repayments ($2.44 million)
were made through direct deduction from the
Centrelink payments of loan clients.
Application forms for a Bond Loan are now
available on the Internet.
During 1999/2000, the Housing Access Loan (Bond
Assistance) Policy underwent review to ensure its
accuracy and currency.

M INISTRY OF H OUSING 2000 ANNUAL R EPORT
OUTCOME:
A CCESS TO A FFORDABLE R ENTAL A CCOMMODATION FOR L OW TO
M ODERATE I NCOME W ESTERN A USTRALIANS
RENTAL HOUSING OUTPUTS 1999/2000
Q UANTITY & COST
Actual Target
Homeswest Rental Program
Commencements 1255 1153 The program was increased at the September
review to target longer-term applicants on the
waiting list in high demand areas.
Completions 1198 1379 Increased demand in the building industry caused
some delays in projects completing as originally
estimated.
Expenditure
Homeswest Refurbishment
$112.78m $82.48m Funding was increased at the September review to
offset the increase in program yield.
Commencements 255 420 Increased demand in the building industry caused
some delays in projects commencing and the
program was subsequently decreased at quarterly
reviews.
Completions 165 270
Expenditure $4.0m $10.0m
Homeswest Bedsitter Conversions
(yielding component of
Minor Works program)
Commencements 49 58 The program was decreased slightly at a
subsequent review in line with site availability and
demand.
Completions 27 58 The program was decreased slightly at a
subsequent review in line with site availability and
demand. Additionally one project comprising 22
units did not commence until the latter part of
99/00 hence the completion date was delayed.
Expenditure (Total Minor Works $2.88m $3.63m The minor works program was revised at
budget quoted) subsequent reviews and readjusted down in line
with projected expenditure.
69

70
RENTAL HOUSING OUTPUTS 1999/2000 (continued)
Q UANTITY & COST
Actual Target
Aboriginal Housing Urban Program
Commencements 40 55 The unavailability of suitable vacant land was the
primary reason in the original target not being met.
Completions 53 58 Increased demand in the building industry caused
some delays in projects completing as originally
estimated.
Expenditure
Aboriginal Housing Remote
Communities Program
$7.60m $7.18m An increase in expenditure has resulted from units
being procured through the Spot Purchase rather
than Construction program, thus bringing
spending forward and helping to reduce the carry
over commitment.
Commencements 33 46 The program decreased as a number of projects
were slow to start. This was the result of
negotiations within the communities.
Completions 46 40 The program has experienced favourable building
conditions, and as such a number of projects have
finished slightly ahead of schedule.
Expenditure $7.85m $8.91m The expenditure is indicative of the programs
reduction.
Community Housing Program (CHP & CAP)
Commencements 116 102 Projects increased as required to meet need.
Completions 111 95 Completions slightly ahead of schedule.
Expenditure $12.50m $14.37m Additional funds anticipated to be available to
these programs were redirected through quarterly
budget reviews to other areas.
1996/1997 1997/1998 1998/1999 1999/2000
Management Cost per Rental
Property - Real $1107 $1166 $1143 $1260
For further information refer to Performance Indicator 2.4.
T IMELINESS
1996/1997
Rental Waiting Times
1997/1998 1998/1999 1999/2000
Average 13 months 15 months 13 months 13 1 / 4 months
Median 5 months 6 1 / 4 months 5 3 / 4 months 6 months
% Housed Within 1 Year 67.71% 62.29% 65.07% 64.11%
For further information refer to Performance Indicator 2.1

Q UALITY
National comparison of overall customer
satisfaction across all states and territories in
relation to rental tenants.
Since 1996 an independent market research agency
has undertaken the national customer satisfaction
survey of rental tenants. The aim of the survey is to
measure and compare customer satisfaction across all
states and territories in relation to key aspects of
product and service delivery.
In 1999 Western Australia was again one of four
states recording the highest proportion of very
satisfied tenants. Around one in five Ministry tenants
(24%) stated they were very satisfied with the overall
service provided. A further 43% of tenants stated
they were satisfied. Dissatisfaction was expressed by
16% of Ministry tenants.
In 1998 and 1999, the entire survey was carried out
by self-completion as opposed to previous years.
The response rate was 52% (1937 responded out of a
total of 3727). Given the very large total sample size
of 1937 the results are extremely reliable statistically
(ie sampling error of ±2.16 at the 95% confidence
level).
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
1999 Overall Satisfaction – State Comparison
n = 1937
Very
Satisfied
Satisfied Dissatisfied
SA 27% 46% 11%
QLD 26% 46% 11%
NT 24% 42% 15%
WA 24% 43% 16%
VIC 23% 46% 16%
NSW 23% 47% 18%
TAS 20% 49% 11%
ACT 16% 44% 17%
AUST 24% 46% 15%
The Ministry did not conduct the Post Occupancy
Evaluation and the survey of Bond Recipients during
1999. These surveys will be conducted biennially.
71

( )
The Ministry of Housing has a range of programs in place to assist Aboriginal people with their
housing and infrastructure needs.
Aboriginal
Housing
72
This includes the provision of 2,500 additional
rental homes for Aboriginal people beyond the
mainstream program, a range of counselling and
support services, a targeted home loan scheme and
various construction, housing and infrastructure
initiatives for Aboriginal communities across the
State.
Laurel Sellers
Manager Management
Support Programs
Patrick Egan
Manager ACSIP
Margy Dia
Manager Aboriginal
Programs
Robert Browning
Manager Community
Construction & ESP
H IGHLIGHTS OF THE Y EAR
The inaugural Indigenous Community Housing
State Conference in February.
Release of the Aboriginal Housing Board Strategic
Plan 1999/2002.
93 Aboriginal people trained or employed
through the Management Support Program with
76 houses upgraded.
Transfer of the Town Reserve Program to the
Ministry of Housing.
Service Agreement between the Shire of East
Pilbara, Jigalong and the Ministry of Housing for
the provision of road maintenance.
Publication of an Aboriginal Programs and
Services Handbook.
Review of the Kimberley Aboriginal Housing and
Essential Services Corporation Agreement and the
extension of its contract for a further two years.
Review of the Remote Areas Essential Services
Program, and its expansion to 62 Aboriginal
communities.
Commencement of 40 and completion of 53
urban construction units.
Commencement of 33 and completion of 46
community construction units.
Commencement of pool construction at
Aboriginal communities under the EHP.
Jarlmadangah Community in Derby winner of
Clean Communities Competition for 1999/2000.

M INISTRY OF H OUSING 2000 ANNUAL R EPORT
73

Aboriginal
Housing
74
A BORIGINAL H OUSING B OARD
The Ministry’s Aboriginal housing programs and
services are overseen by a 10 member Aboriginal
Housing Board (AHB), which has equal State and
Commonwealth representation. The Board’s role is to
guide the development of policies and programs that
improve the quality of housing and access to housing
for Aboriginal people. Its strategies are implemented
by the Ministry’s Aboriginal Housing and
Infrastructure Unit (AHIU).
In December 1999, the Board published a three-year
Strategic Plan for 1999/2002 to guide the future
activities of the AHB and AHIU. The Plan was
approved by the State Minister for Housing and the
Commonwealth Minister for Family and Community
Services.
B OARD M EMBERSHIP
A number of AHB membership changes occurred
during the year, primarily related to the Aboriginal
and Torres Strait Islander Commission elections.
Joining the Board were ATSIC Commissioners Eric
Bedford and Eric Wynne and ATSIC State Advisory
Committee Chairperson Ian Trust.
Ms Jeanice Krakouer was elected as the new
Chairperson and also represents Aboriginal interests
on the State Housing Commission Board.
At June 30, 2000 the Aboriginal Housing Board
members were:
Jeanice Krakouer (Chairperson)
Ron Attwood (Deputy)
Pauline Manning
Noel Green
John McGuire
Eric Wynne
Eric Bedford
Preston Thomas
Terry Whitby
Ian Trust
R EGIONAL V ISITS
The Aboriginal Housing Board conducted two of its
meetings this year in regional areas. This included a
meeting in Carnarvon in Ausgust 1999 and in
Broome in May 2000.
While in Carnarvon, the Board took the opportunity
to inspect urban construction projects in the town
and also assessed the progress of the Management
Support Program at Mungullah.
In Broome, the Board visited Malingbarr to assess the
progress of the Management Support Program
nearing completion, and inspected two recently
completed dwellings and an ablution block at Nillir
Irbanjin.

U RBAN C ONSTRUCTION
Aboriginal people make up approximately 18 per
cent of all Homeswest tenants, and the Ministry has
various initiatives in place to respond to the ongoing
strong demand for accommodation. This includes
the provision of an additional 2,500 homes beyond
the mainstream program allocated exclusively to
Aboriginal people. While the names of Aboriginal
applicants are placed on the mainstream waiting list
along with all other customers when they apply for
rental accommodation, they are able to move ahead
of the mainstream list if one of the additional homes
allocated for Aboriginal housing becomes available in
the area they have nominated.
In 1999/2000, 53 units were completed and 40 units
commenced at a total cost of $7.602 million, most of
which was spent in country centres. Minor upgrades
to Aboriginal housing rental properties were also
undertaken at a total cost of $139,520.
Notable projects were:
Lot 40 Napier Tce, Broome - 4 units.
Lot 207 Richie Wy, Rangeway constructed by the
Mid-West Training Group.
3 spot purchase units in Kalgoorlie/Boulder.
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
O UTLOOK
In 2000/01, $5.288 million has been allocated to
commence 51 units and complete 57 units.
Notable projects include:
Construction of one unit in Beechboro by an
Aboriginal construction team.
One mobility unit in Brunswick Junction.
Two breezeway design dwellings in Roebourne.
C OMMUNITIES C ONSTRUCTION
P ROGRAM
In1999/2000, construction began on 33 homes in
various locations, and 46 houses were completed and
occupied. Total expenditure was $8.388m, including
$538,000 for housing maintenance.
Projects commenced this year included:
Nillir Irbanjin (Broome) - 2
Youngaleena (Wittenoom) - 2
Karmulinunga (Derby) - 6
Ngallagunda (Gibb River) - 2
Mowanjum (Derby) - 2
Pingelly (Reserve) - 2
Central Reserves - 10
Leonora (Nambi Road) - 3
Bidyadanga (La Grange) - 4
75

Aboriginal
Housing
76
The Kimberley Aboriginal Housing and Essential
Services Corporation (KAHESC) has been program
managing the Communities Construction Program in
the Kimberley since 1998/99. KAHESC also program
manages the ATSIC Community Housing and
Infrastructure Program which effectively provides for
the pooling of ATSIC and Ministry funds in
accordance with the bilateral agreement.
In November 1999, a performance evaluation of the
program management service provided by KAHESC
was carried out by the Aboriginal Housing and
Infrastructure Unit and the Ministry of Housing
internal auditors. The positive outcomes being
achieved resulted in the program management
arrangements with KAHESC being extended for a
further two financial years.
O UTLOOK
In the coming year, it is intended that a large
proportion of Aboriginal Housing’s community
housing projects will be constructed in communities
that are recipients of funds from the Aboriginal and
Torres Strait Islander Commission’s (ATSIC) National
Aboriginal Health Strategy Community Housing and
Infrastructure Program. This will allow a more
balanced and coordinated approach to the provision
of housing and essential services to selected State
funded communities. This approach is seen as the
first step towards normalisation of Aboriginal
communities, which will provide for an upgrading of
essential services to an equivalent of those enjoyed by
mainstream communities in adjacent townships.
This process has already begun for 28 town-based
communities, and surveys are currently underway to
assess the requirements for upgrading essential
services at those communities to the same standard as
the town in which they are located under a new
Town Reserve Normalisation Program.
A further program which will be carried out as a joint
initiative with ATSIC next year is the “Fixing Houses
for Better Health” program which will see 1000
houses targeted nationally for urgent maintenance in
respect to any life and/or health threatening
problems. This is mainly aimed at rectification of
plumbing and electrical faults and will be delivered to
200 houses at Nookanbarr, Junjuwa, Bayulu and
Looma in Western Australia.

The Ministry will continue its policy to encourage
community labour input and training programs
within construction projects, and will foster the
employment of Aboriginal apprenticeships where
time frames make this possible.
It is proposed to commence construction of further
65 houses in remote Aboriginal communities in the
next financial year with notable projects including:
4 units at Ninga Mia for pensioners which will be
undertaken by the Management Support Program
work team.
Construction of dwellings for permanent
residents at Parnpajinya and development of a
camping area for transients.
Commencement of a 15 house replacement
program at Junjuwa which will run over three
financial years and provide the basis for ongoing
training of local residents.
Commencement of a 15 house replacement
program at Looma which will also extend over
three years and which has been developed to
compliment the NAHS Community Housing and
Infrastructure Program.
A further 10 houses at Jigalong which should
satisfy the shortfall needs at that community.
Commencement of a 12-house program at
Wirrimann (Balga).
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
H OUSING D ESIGN I NITIATIVES
During the year, the Aboriginal Housing
Infrastructure Unit closely examined the housing
designs being used for community housing in all
regions to ascertain the possibility of confining the
number of designs used throughout the State.
By making a variety of designs available, which are
acceptable to and suitable for construction in remote
communities, it is anticipated that general
construction costs can be reduced considerably. This
process will be pursued during the coming year, and
it is hoped that the concept of “limited design” will
be embraced by communities as a cost saving and
better planning initiative within the 2000/2001
financial year.
77

Aboriginal
Housing
78
M ANAGEMENT S UPPORT P ROGRAM
(MSP)
The Management Support Program was established in
1992 to help Aboriginal communities take control of
their destiny through self-managing their housing
needs. Instead of the Ministry sending in outside
contractors to repair and maintain buildings,
community members receive accredited training to
do the work themselves. In the process, Aboriginal
people are gaining new skills and employment
opportunities, and the whole community gains a
sense of pride and ownership. The MSP not only
teaches the work teams how to repair, maintain and
upgrade buildings, it also provides management skills
such as forward planning, controlling rent monies,
and managing income and expenditures. To ensure
the work teams are successfully trained, formal
traineeships have been established with the WA
Department of Training and Employment and the
Commonwealth Department of Employment,
Workplace Relations and Small Business.
At June 30, 2000, there were 34 Aboriginal
communities involved in the MSP. Since the program
began, a total of 41 communities have participated,
receiving skills training and management support.
This year, the MSP trained or employed 93 Aboriginal
people and undertook upgrades to 76 houses. Total
expenditure under the MSP was $5.8 million.
M ANAGEMENT I NCENTIVE
P ROGRAM (MIP)
In October 1999/2000, the Town Reserves Program
was transferred from the Aboriginal Affairs
Department to the Ministry of Housing. The
$250,000 allocated annually from State Treasury will
now be used to assist in developing housing
management systems under a new Management
Incentive Program. This program was piloted during
1999/2000 in four Aboriginal communities. The
funding assistance is used as a follow-up to the MSP
for housing management services including wages,
insurance, administration and maintenance.
R EMOTE A REAS E SSENTIAL
S ERVICES P ROGRAM (RAESP)
The RAESP provides a vital repair and maintenance
service for power, water and wastewater systems to
62 remote Aboriginal communities in Western
Australia. Over the next two years, this number will
increase to 72 communities.

Regional Service Providers visit each community
monthly to check water quality and every six weeks
to carry out routine services to the power, water and
wastewater systems. They also provide an emergency
call out service for breakdowns to ensure
communities are not left without essential services for
any lengthy period. In 1999/2000, the RAESP
received funding of $5.8 million.
The Ministry further enhanced the RAESP this year
by introducing an accredited training course, in
conjunction with ATSIC, which will enable 50
Aboriginal people to become fully qualified Essential
Service Operators (ESOs). The ESOs report to the
Regional Service Providers and the cost of their wages
will be shared equally between ATSIC and the
Ministry of Housing. The ESOs are expected to
become a vital part of Aboriginal community
development and should also reduce the cost of
maintaining mechanical equipment by providing
essential maintenance services.
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
As a further initiative to the RAESP, two essential
service technicians were engaged by Regional Service
Providers at Lombadina and Kuppungarri to assist
with development of trainees in adjacent
communities and to provide a support and mentoring
role.
A BORIGINAL C OMMUNITIES
S TRATEGIC I NVESTMENT P ROGRAM
(ACSIP)
This program seeks to achieve sustainable
improvements in the health, living standards and
quality of life of people in remote Aboriginal
communities. Key outcomes have included roads
being sealed, new homes being built, drainage
improved and other community facilities being
upgraded or replaced, with community members
involved in all aspects of planning and progressing
the works.
ACSIP commenced in 1996, with the Jigalong
community in the East Pilbara and Oombulgurri
community in the East Kimberley selected to trial the
program. Both underwent an extensive works
program, resulting in dramatically improved
infrastructure and facilities for the two communities.
Their success has progressively led to six other
communities becoming involved, including
Bidyadanga, Nambi Road Village, Wirrimanu,
Kalumburu, Mugarinya and the Dampier Peninsular
this year.
79

Aboriginal
Housing
80
The State Government has committed $29 million to
ACSIP over 8 years (includes forward estimates) from
1996/97, and will continue to draw in additional
communities each year. Total expenditure this year
was $3.357 million.
Achievements in 1999/2000:
Dadaway Building Company constructed the
Warden’s Facility at Oombulgurri at a cost of
$411,000.
Sealing and kerbing of roads, upgrade of airstrip
and borefield roads and the community drainage
at Jigalong - $2.2 million.
Upgrade of power transmission lines at
Oombulgurri - $395,000.
Construction of council office and renovations at
Oombulgurri - $455,000.
Upgrading and sealing of the Dampier Lands
Airstrip near Lombadina - $700,000.
A particular goal of the ACSIP is to increase the
involvement of local governments in delivering
municipal services to Aboriginal communities to a
standard comparable to that of other similarly sized
mainstream towns in Western Australia. Significant
progress was made this year. Highlights included an
agreement signed by the Shire of East Pilbara and the
Jigalong Community Incorporated (JCI) in December
1999 for responsibility for maintaining key Jigalong
community roads for a period of three years to be
with the Shire. This followed another historic
agreement earlier in the year between the Shire of
Broome and the Beagle Bay, Djarindjin, Lombardina,
One Arm Point and Bidyadanga communities, to
work together to improve access to local government
services. Both agreements represent a significant step
forward in relations between remote Aboriginal
communities and local government authorities.
O UTLOOK
Construction of new barge landing at
Oombulgurri - $400,000.
Upgrade of admin office facilities at Jigalong and
Mugarinya - $300,000.
Construction of the environmental health
managers house at Jigalong - $180,000.
Upgrade airstrip, refuse disposal area and staff
housing at Jigalong - $140,000.
Improve community management, structures and
systems at Kalumburu, Wirramanu and
Bidyadanga - $300,000.
Upgrade power station at Burringurrah
community - $20,000.

E NVIRONMENTAL H EALTH
PACKAGE (EHP)
This major initiative launched early in 1999 is a “oneoff”
program designed to help combat health problems
in selected remote Aboriginal communities
through initiatives such as sealing internal roads for
dust abatement, the greening of communities and
reticulation. There is also a focus on the provision of
recreation facilities, including swimming pools and
basketball courts, as a practical alternative to
boredom, despair and substance abuse among
Aboriginal youth.
A number of organisations have contributed funds,
including the Ministry of Housing, Main Roads,
Education Department, Aboriginal Land Trust,
Healthways, Lotteries Commission and Wesfarmers.
Eight communities, including Jigalong, Burringurrah,
Oombulgurri, Kalumburu, Bidyadanga, Looma, Bardi
and Mugarinya will benefit from the Environmental
Health Package.
In 1999/2000, achievements included:
The first pool is nearing completion at
Burringurrah. There has been significant
community involvement in the construction,
including provision of stone pitching to banking
within the pool compound, and making a safety
cover over the pool’s balance tank. The pool will
be managed by the Royal Life Saving Society,
which will also train local people as pool
managers. The trainees will be paid a pool
attendant’s wage while being trained.
The second pool at Jigalong (located 165km east
of Newman) is now well underway.
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
O UTLOOK
Swimming Pools – the third pool located at
Mugarinya will begin construction in late August.
Roads Upgrade - the upgrade of the internal road
system at Bidyadanga and Bardi will commence
before the end of July and will be completed
before the end of the year.
Greening - works for the greening of
communities will commence in mid-August at
Oombulgurri, Burringurah, Looma, Mugarinya
and Bidyadanga. Kalumburu and Bardi will be
done in the 2001 dry season. The scope of the
works includes the provision of parks and
gardens and the greening of football ovals at some
communities, at a cost of $3 million.
A BORIGINAL T ENANTS S UPPORT
S ERVICE (ATSS)
The aim of the ATSS program is to provide culturally
appropriate support and information to Aboriginal
tenants or prospective tenants in regional areas of
Western Australia, to assist them to understand their
tenant rights and responsibilities and thereby obtain
housing and maintain their tenancy.
The target group of the ATSS is Aboriginal people
living outside the Perth metropolitan area who:
are seeking assistance with their application for
public rental housing;
are new tenants of the Ministry and have little
experience in renting housing or a history of poor
tenancy; or
are tenants of the Ministry and need assistance
with tenancy issues.
81

Aboriginal
Housing
82
In 1999/2000, considerable progress was made in
planning and shaping this new support service.
Consultant Leslie Gevers of Community Management
Services was appointed in August 1999 to review the
objectives of the ATSS and provide detailed
recommendations on strategies, locations, funding
guidelines, reporting procedures and other issues
related to commencing the new service. The
consultant also developed criteria for seeking
applications from incorporated Aboriginal
organisations to provide the support services on
behalf of the Ministry in selected regional areas. The
Ministry advertised for expressions of interest, and six
applicants have now been selected.
The ATSS is scheduled to commence in August 2000,
and will be provided by:
Kuwinyardu Aboriginal Resource Unit, Carnarvon
- covering Carnarvon only
South West Aboriginal Medical Services, Bunbury
- covering Bunbury and Collie
East Goldfields Aboriginal Corporation Resource
Agency, Kalgoorlie - covering Kalgoorlie/Boulder,
Leonora, Laverton
Joorook Ngarni Aboriginal Corporation,
Wyndham - covering Wyndham, Kununurra and
Halls Creek
Southern Aboriginal Corporation, Albany - two
services covering the upper and lower Great
Southern
Port Hedland Regional Aboriginal Corporation,
Port Hedland - covering Port and South Hedland
only.
A BORIGINAL C USTOMER S UPPORT
O FFICERS
To help ensure Aboriginal tenants do not face
disadvantage in their housing situation, the Ministry
employs four Aboriginal Customer Support Officers
and a Coordinator to directly assist housing
applicants and tenants. These Aboriginal officers are
aware of relevant cultural issues and are able to
provide practical advice and support.
Their main responsibility is to assist Aboriginal
people who are experiencing problems with their
tenancy. This can range from problems with rental
arrears and sundry debt to overcrowding and other
social issues. Assistance is also available to help with
rental applications.

In 1999/2000, this service was extremely well
utilised, with around 60 enquiries received per day
by the four Aboriginal Customer Support Officers
and their Coordinator. This included calls from
members of the public and referrals from Ministry
offices in metropolitan and regional areas.
The Aboriginal Customer Support officers also
undertook regular visits to regional areas to follow up
issues and liaise directly with customers and local
community organisations.
I NDIGENOUS H OUSING
C ONFERENCE
In February 2000, the Ministry of Housing, through
the Aboriginal Housing Board, sponsored a two-day
conference with ATSIC to examine issues affecting the
quality and availability of Aboriginal housing.
More than 100 Aboriginal people from across the
State attended the conference, which included a
range of speakers from ATSIC, the Ministry and key
practitioners in the field of Indigenous housing.
Delegates were split into groups to workshop their
ideas and experiences on topics ranging from best
practice and effective housing management, to
construction and design options. After each
workshop, the groups gave formal presentations on
their conclusions. The conference provided
significant feedback and ideas to assist the Ministry in
its ongoing efforts to improve indigenous housing.
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
C LEAN C OMMUNITIES
C OMPETITION
The Aboriginal Housing Board developed the Clean
Communities Competition in 1997 as a means to
promote healthy living in Aboriginal communities.
The competition is sponsored by the Ministry of
Housing, the Aboriginal Affairs Department, the
Health Department of Western Australia and the
Aboriginal and Torres Strait Islander Commission.
In November 1999, Jarlmadangah community in
Derby was awarded first prize in the 1999 Clean
Communities Competition ahead of 12 other
communities from across the State.
Jarlmadangah is a community which has shown great
pride in itself and worked hard to provide a clean
and healthy environment for members. It
demonstrated a high level of commitment to
environmental health, community greening, housing
maintenance and traffic management. Its
achievements earned members a $15,000 winner’s
cheque.
Lombadina community in Broome won second prize,
and Quartz Blow community near Halls Creek was
awarded third prize. The runners-up were
Karmulinga community in Derby and Ninga Mia
community in Kalgoorlie. The encouragement award
went to Iragul community near Norseman.
83

( )
The Business Strategies directorate provides support services to the business operations of
the Ministry.
Business
Strategies
Brian Pond
Manager Office Services
84
This includes corporate policy and strategic
planning, human resource management and
training, information systems and support, office
services, contract management and settlement and
conveyancing services.
Bryan Walsh
Manager Corporate
Development
Shelley Mettam
Manager Human
Resources
Heather Cullen
Manager Information
Services
Leanne Fotakis
Manager Securities &
Conveyancing
HIGHLIGHTS
Successfully managed the millennium bug.
Developed the Human Resource Strategic Plan.
Achieved the Ministry’s goal of women in middle
and senior management positions.
Negotiated a National Data Agreement with the
Commonwealth.
Transferred maintenance of the in-house
computer system.
Introduction of an extensive Intranet.
A smooth and trouble-free transition into the
New Tax System.
S TRATEGIC P LANNING
During the year, the Ministry developed a new
Strategic Plan to cover the period until 2003
incorporating a new vision, mission, core values,
corporate objectives and key strategies, based on the
Balanced Scorecard approach. The Strategic Plan
represents an integrated approach to Government
Housing Services for the new millennium.
H UMAN R ESOURCES
Emanating from the Strategic Plan is the development
and adoption of a Strategic Human Resources Plan.
This plan was developed in close consultation with
staff, taking account of the results of both staff and
customer surveys and other major Ministry reports.
The Plan aims to establish and maintain a progressive
Human Resources approach.

M INISTRY OF H OUSING 2000 ANNUAL R EPORT
85

Business
Strategies
86
The critical priorities for 2000 have a strong emphasis
on addressing immediate needs emanating from the
staff and customer survey results, and therefore
include as priorities matters which have been
acknowledged by managers, staff and customers as
requiring early attention.
A CHIEVING EEO AND D IVERSITY
The Ministry launched its EEO/Diversity Management
Plan 1998-2000 in June 1998. The plan introduces
the concept of capitalising on employee diversity as a
way to improve service delivery, achieve core business
goals and maximise employee potential.
During the year, a number of significant outcomes
were achieved in relation to the EEO/Diversity Plan.
These included:
The integration of the EEO/Diversity Plan into the
newly developed Human Resource Strategic Plan
to provide a more strategic focus. The integration
of these two plans enable the Ministry to integrate
the principles of equity and valuing diversity
throughout all of its human resource functions.
The development of a Disability Employment
Action Plan (DEAP) for the employment and
advancement of people with disabilities. The
DEAP presents a more structured and focused
approach to employment issues effecting current
and prospective employees and offers strategies to
overcome identified barriers. It also compliments
the Human Resource Strategic Plan.
The development of an Equal Opportunity and
Diversity Policy Statement to foster a culture
which values and responds to the rich diversity of
staff, customers and stakeholders.
To effectively achieve the EEO/Diversity outcomes
that best suit the business needs of the Ministry, a
decision was also made to integrate the existing
EEO/Diversity Management Plan into the new
Human Resource Strategic Plan, rather than have it
sitting as a separate, discrete plan.
Vision — “To work as one with staff to achieve
superior customer service.”
Our Vision describes the hopes and aspirations of our
workforce for the future, which is to be:
Flexible and skilled.
Highly productive and responsive to the
customer.
Highly diverse and balanced in its workforce
profile.
Empowered to make decisions in the interest of
its customers.

The working environment we are aiming for is:
To be a preferred employer.
To be motivating and supportive to all workers
from all ages and backgrounds.
To have flexible, family friendly work practices.
To continue to enhance introduce flexible reward
systems.
To encourage staff creativity and innovation.
Representation of Equal Opportunity Target Groups
at June 30, 2000
Number Percent
Aboriginal employees
Culturally & linguistically
73 8.25
diverse employees 22 2.48
Employees with disabilities 26 2.93
Women 457 51.58
Total employees 886 100
E MPLOYEE R ELATIONS
This year saw the release of the Ministry’s third-round
1999 Workplace Agreement. The agreement was
received positively, with 95% of staff now on
workplace agreements.
The 1999 Workplace Agreement continues to build
on the achievements of the 1997 WPA, while
fostering the transition to the new Ministry of
Housing structure, and linking the payment of salary
increases to individual and corporate performance.
The Agreement provided signatories with a 2 per cent
salary increase upon registration, plus an additional
1 per cent linked to individual performance.
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
Signatories have scope for a further 3 per cent
payment subject to the Agreement’s productivity
targets being achieved.
The 1999 Agreement promotes employee selfdevelopment
and continuous learning via the
introduction of annual book subsidies and the
extension of paid study leave for second degrees.
It also contains a number of family friendly initiatives
to support staff with their out-of-work commitments,
such as Teleworking, the 48 in 52 Self-Funded leave
scheme, and the promotion of part-time employment.
Incentives have been developed to assist in the
recruitment of staff to remote areas, such as scope to
appoint recruits beyond the normal entry level and
the payment of an annual allowance linked to service
in the area.
The proposed third round 2000 Ministry of Housing
Enterprise Bargaining Agreement (EBA) is currently
being negotiated for the balance of staff choosing not
to take up the WPA option. Employees have been
provided with the choice to individually take up the
Workplace Agreement or to collectively negotiate
revised work practises and salary increases.
87

Business
Strategies
88
W ORKERS’ COMPENSATION
S TATISTICS
Number of lost time injuries 13
Frequency rate 9.42
(no. of lost time injuries
per million hours worked)
Incident rate 1.47
(no. of lost time injuries
per 100 workers)
Premium $290,225.00
Note: Last year’s frequency rate of 0.66 was
incorrectly reported. The correct figure was 6.57.
The error was due to a miscalculation of the number
of hours worked.
R EHABILITATION
Three existing rehabilitation cases were carried over
into 1999/2000 and ten new cases were established.
During the year, five cases were resolved with
full-time return to work, and one case/claim was
settled.
T RAINING AND D EVELOPMENT
The Ministry spent $812,400 on training during the
year. This was equal to 2.32 per cent of payroll and
represented expenditure of $1,037 per FTE. Ministry
staff attended more than 15,000 hours of training, an
average of 19.25 hours per FTE.
In addition to providing ongoing staff development
for employees, the Ministry undertook a number of
significant training projects to support major
organisational initiatives.
Customer service was an important theme in the
organisation’s training activities, with 126 staff
attending courses on customer service skills,
understanding domestic violence, Aboriginal cultural
awareness, and the housing needs of people with
mental illness. In addition, 238 staff participated in
customer service improvement workshops as part of
the Focus on Customer program. This initiative,
announced by the Minister for Housing at the launch
of the new Ministry, involves work teams identifying
customer service issues and developing their own
local responses to improve service delivery.
Another significant theme was support for the
introduction of new technology. One major project
involved providing basic “hands-on” training in the
use of Windows 95, the MS Office 97 suite of
applications and the Internet to more than 300 staff
around the State. A second project involved the
development of a training strategy and presentation
of introductory sessions to support the
implementation of a Graphical User Interface for the
Ministry’s main business information system
(Caretaker).

Preparation for the GST was the third major area of
training activity during the year. A comprehensive
strategy was developed to educate staff about the
implications of the tax. This included the
deployment of an on-line general education package
(completed by over 700 staff) and delivery of
customised policy and procedure training to more
than 300 staff.
H UMAN R ESOURCES P LANNING
The Branch continued to provide quality human
resources information reporting services, enabling
effective management of the Ministry’s workforce.
The following table sets out staff numbers for the
Ministry over the past four years*.
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
At 30 June At 30 June At 30 June At 30 June
2000 1999 1998 1997
Permanent Full Time Staff 702 670 691 684
Permanent Part Time Staff 85 77 76 95
Contract Full Time Staff 88 45 41 39
Contract Part Time Staff 11 12 8 12
Total People 886 804 816 830
Total FTE’s 785 750 738 749
Average Staffing Level for the Year 1999/2000 1998/99 1997/98 1996/97
784 749 734 771
* Figures for previous years exclude the Government Employees Housing Authority and the Country Housing Authority.
During the year, an intranet-based system was
introduced which gives employees on-line access to
aspects of their personal HR information including
their service record, leave history and pay details.
89

Business
Strategies
90
A BORIGINAL E MPLOYMENT
As at June 30, 2000, the Ministry employed 73
Aboriginal staff, which represents 8.25% of the
overall workforce. This is more than four times the
representation in the overall public sector workforce.
The majority of our Aboriginal staff commenced their
employment careers through the Ministry of Housing
traineeship program. There are 10 Aboriginal
employees currently undertaking traineeships, while a
further six Aboriginal people completed traineeships
this year and are continuing their employment with
the Ministry.
Since 1997, 60 Aboriginal people have joined the
Ministry under the traineeship program, with 43 still
employed. The Ministry has also been the stepping
stone for many Aboriginal people to gain further
employment with other government agencies,
including health, education, police and family and
children services.
Career development has been a focus over the past 12
months with staff encouraged to take on further
studies. All Aboriginal entry-level staff who
successfully complete the Certificate II in Business
(Office Administration) are now being offered
enrolment in the Certificate III course, giving them
the opportunity to gain an additional nationally
accredited qualification in Business Administration.
Over the past four years, four Aboriginal staff
members have gained agency scholarships to
undertake the Graduate Certificate in Housing
Management and Policy conducted by Swinburne
University of Technology. Other staff members are
being supported to attend Curtin University of
Technology’s Community Management and
Development Program, as well as postgraduate
studies in Indigenous Research and Development.
A culturally appropriate job applications training
program was also run during the year to enhance the
ability of Aboriginal staff to compete for higher level
positions in the Ministry.
Through Aboriginal Housing and Infrastructure
initiatives such as the Management Support Program
and Remote Areas Essential Services Program
(RAESP), 163 Aboriginal people have been employed
in communities across the State. The New Living
Apprenticeship Scheme and Mid-west Training Group
employs a further 22 Aboriginal people.

C USTOMER S ERVICE
In 1999/2000, the Ministry continued to focus
strongly on improvements to customer service
delivery.
The Ministry maintained its level of overall customer
satisfaction in the 1999 National Tenant Satisfaction
Survey, and also achieved significant increases in
‘strong satisfaction’ with the provision of nonemergency
maintenance and among tenants in
separate houses. These improvements can be directly
linked to initiatives implemented by the Ministry in
1999/2000 such as the stock improvement program
and an emphasis on customer service provided by
maintenance contractors.
Maintenance contractors are required to abide by a
Code of Conduct as part of the general conditions of
their contract with the Ministry of Housing. This
Code requires them to deliver a consistently high
quality customer service in their dealings with the
Ministry and its customers. They are also required to
make an appointment with the customer to
undertake routine or priority maintenance. Initiatives
to improve the monitoring of contractor performance
have also been implemented, including the
introduction of technical consultant services to check
contractor quality/workmanship.
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
There was, however, an increase in dissatisfaction
with some aspects of the Ministry’s service delivery
and a number of initiatives are currently being
implemented to address this, with the aim of
providing a more personalised and improved service
to our clients. These initiatives include the
discontinuation of answering machines for
Accommodation Managers, a review of standard
letters and provision of business cards for Aboriginal
Liaison Officers.
During the year, the Ministry introduced quarterly
account statements for tenants. These statements are
designed to assist tenants to keep track of all
accounts relevant to their tenancy, such as rent, water
consumption, tenant liability and bond accrual, and
the payments they have made. This initiative has
been well received by tenants.
91

Business
Strategies
92
The Ministry of Housing’s Internet site
at www.housing.wa.gov.au is a key part of meeting
customer service requirements for information
delivery. The Ministry’s Customer Service Charter
requires that accurate and up to date information is
available at all times, and specifically provides for “a
web site that is regularly updated.” The Internet site
provides information services never before available.
Anyone in the State (and indeed the world) with
internet access can gain immediate, free and
convenient access to information about the Ministry’s
services, policies and structure from their own home,
office or community access computer. The site news
centre gives same-day information on important
events, and regular updates - 26 major updates in the
April to June 2000 quarter, for instance - keep the
site to a currency impossible for traditional media.
Further features, including interactive and
e-commerce services, are planned.
C OMMONWEALTH S TATE H OUSING
A GREEMENT (CSHA)
A new four-year Commonwealth State Housing
Agreement commenced in July 1999. A requirement
of the new CSHA was the finalisation of a National
Housing Data Agreement (NHDA), and this new
agreement was signed in October 1999. The new
NHDA provides:
A framework for national housing information
development.
A process for agreement on nationally applicable
data development.
A structure for developing, establishing and
reviewing the national housing information
infrastructure.
This will support the reporting of a nationally
comparable set of indicators and data for
benchmarking purposes.
Together with the multilateral agreement, each State
is required to enter into a Bilateral Agreement with
the Commonwealth for a four-year term. The
purpose of this agreement is to detail specific housing
outcomes which are unique to each State. Western
Australia’s Bilateral Agreement was signed in March
2000. Performance measures for the outcomes are
developed jointly with the Commonwealth and will
be reported annually together with targets and
outputs.

A CCESS A UDITS
The Ministry completed the audit of its 28 offices
throughout the State, with many offices undertaking
modifications to make their offices more accessible to
people with disabilities.
In addition, access policies were developed to ensure
that all Ministry customers could access it services
and programs. This includes home visits when a
customer can not attend a Homeswest office due to
access reasons.
The Ministry will ensure that all future offices to be
leased will comply with the access requirements of
people with disabilities wherever practicable.
INFORMATION SERVICES
The Information Services branch had a particularly
eventful year, with the following highlights:
Year 2000 (Y2K) – completed a large
redevelopment of all internal systems. This
proved successful, with no significant incidents at
the changeover of the century, or at any other
significant associated dates.
GST – completed significant system changes to
meet the extremely tight and immovable GST
implementation deadline.
Some of the major innovations during the year were:
Introduction of an extensive Intranet (MOHnet) –
which has enabled Ministry employees to conduct
much of their internal business on-line. It has
rapidly become the central source of information
and access to internal systems.
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
Development of Boardnet, a secure Internet site
which allows access by Board members to agenda
and papers over the web. All Board meetings are
now paperless, as are Executive meetings.
Technology refresh, which has moved the
Ministry from a dated ‘green screen’ network to a
modern PC with windows-based software. With
the increasing reliance on the Ministry’s computer
system, there is now a PC for every employee.
E-business initiatives are also progressing, with pilots
allowing customers to lodge applications and
maintenance requests and query waiting lists on-line,
and contractors to pick up job orders and enter
completed job orders over the Internet.
The Ministry also entered into a partnership with
Fujitsu (Amdahl) to market the Ministry-developed
system ‘CareTaker’. Previously called PAC (Property
Account Customer), CareTaker is the main system
within Ministry of Housing.
Information Services underwent a restructure to
adapt to the new and changing environment. This
has seen the managerial levels filled with full-time
staff rather than contractors, and ensures continuity
and retention of knowledge and skills.
93

94
STATEMENT OF COMPLIANCE WITH PUBLIC SECTOR
STANDARDS AND CODES
1. In the administration of the State Housing Commission operating as the Ministry of Housing, I have
complied with the Public Sector Standards in Human Resource Management, the Western Australian
Public Sector Code of Ethics and Ministry of Housing’s Code of Conduct.
2. I have put in place procedures designed to ensure such compliance and conducted appropriate internal
checks to satisfy myself that the statement made in 1. above is correct.
3. The applications made for breach of standards review and the corresponding outcomes for the reporting
period are:
u Number lodged: 1
u Number of breaches found: Nil
u Number still under review: Nil
G L JOYCE
MANAGING DIRECTOR

Bev Wilcox
Manager Communications and
Marketing
The Communications and Marketing
branch of seven officers reports to
the Managing Director. The branch provided an
expanded range of services to all divisions of the
Ministry during the year. Its primary aim is to
distribute relevant information to key stakeholders to
support the Ministry’s mission and the objectives of
the Ministry’s Strategic Plan.
During 1999/2000, the Communications and
Marketing branch was involved in several major
projects including:
Project management of the new Ministry’s
badging and corporate branding, which was
launched in mid-1999. This involved the
creation of general Ministry branding and
sub-brands for Landstart, Keystart, Aboriginal
Housing, Homeswest and Rural Housing. These
brands were used in an extensive range of
applications including office signage, stationery,
information brochures, newsletters, promotional
material such as advertising, posters and displays,
internal forms, documents and on the Internet
and Intranet.
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
Communications and marketing
Creation of design and content for the Ministry’s
Internet site. The site was initially created
externally, but was re-launched in March 2000
with a new look and structure. It is maintained
and coordinated by the newly-created position of
Web Publications Officer. The site philosophy
was to help customers move easily around the
site, particularly those with limited computer or
Internet experience. Produced jointly by
Communications and Marketing and Information
Services, the new site features easier navigation
and a wider range of information, including
publications formerly available only in hard copy
• Included on the new site –
www.housing.wa.gov.au - are application
forms for rental housing, bond assistance,
housing loans, and on-line versions of “At
Home”, the Homeswest newsletter for
tenants.
• Helpful features include drop-down menus
on the front page for quick navigation, a site
guide, a beginner’s page to help first time
users, a feedback form to encourage comment
on the site, a search engine and an update list
to show frequent visitors recent changes to
the site.
• In 2000/2001 the Landstart and Keystart
sub-sites will be reviewed to ensure that
future information and design initiatives
reinforce overall marketing strategies and
advertising campaigns.
95

96
Project management of all advertising and
marketing on behalf of Landstart. The branch
managed ongoing advertising on behalf of this
division, coordinating and placing press
advertising for Landstart. The branch also
advised Keystart on promotion, and represents
the Ministry on Keystart’s Public Relations and
Marketing Committee.
Additionally, the branch project managed the
First Home Buyer’s Scheme campaign on behalf of
the State Government. The information
campaign covered press, radio, television and
outdoor posters (billboards) directing extensive
enquiry to a phone-in information line and
web-based information.
The branch responded to a large number of
media inquiries and generated press releases and
background information on behalf of the Ministry.
A total of 193 press releases were created during
the year. Numerous other queries from the media
were handled.
The year saw the production of several new
publications including “At Home” - a quarterly
newsletter for Homeswest tenants, the Aboriginal
Housing Board newsletter for Aboriginal tenants
produced on behalf of the Aboriginal Housing
and Infrastructure Unit, and “Under One Roof” -
a monthly staff newsletter.
The branch also produced 41 speeches,
coordinated all printing for the Ministry and
coordinated 26 events around the State.

A DVERTISING
Electoral Act 1907
Expenditure incurred by the Ministry during 1999/
2000 in relation to section 175ZE of the Electoral Act
was as follows:
Advertising agencies
John Davis Advertising $ 34,794
MJB&B $ 345,983
Total $ 380,777
Market research organisations
Donovan Research $ 104,414
David Hides $ 9,800
Total $ 114,214
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
Reporting Requirements
Polling organisations nil
Direct mail organisations nil
Media advertising organisations
Marketforce Productions $ 283,295
Media Decisions $ 348,782
Total $ 632,077
D ISCLOSURE OF P ECUNIARY
I NTERESTS
Except as mentioned below, senior officers do not
have an interest in any existing or proposed contracts
made with the organisation.
All Commissioners abide by the Code of Conduct of
the Australian Institute of Company Directors in
respect of conflict of interest.
Specifically, the Chairman of the Board and two
Commissioners declared pecuniary interests in firms
which have business dealings with the Ministry or
companies owned by the Ministry.
Chairman Lloyd Guthrey is a member of the WA
Advisory Board of Aon Risk Services Ltd, which
provides insurance services to the Ministry on a
commercial basis.
Commissioner Robert Brown is the Executive
Director of Westland Building Society, which is a
retailer for the Keystart scheme.
Ex-Commissioner Peter Marks (who resigned
from the Commission on March 31, 2000) is a
partner in the legal firm Marks Healy Sands,
which is on a Ministry panel for legal advice.
Where conflict arises, Commissioners have no
involvement whatsoever in the Board process.
97

98
P RICING P OLICY
Conveyancing Fees
The role of the Securities Branch is to ensure the
Ministry’s real property and security assets are
protected and assist in areas such as statutory
compliance and legislative change that may impact
on our operations. It also manages a panel of Legal
Service Providers to provide legal opinion to the
Ministry.
During the year, 15,957 transactions were effected on
behalf of the Ministry. Revenue received from
conveyancing fees amounted to $371,111.
Rents
Rents charged to tenants are determined from time to
time by the Commission and approved by the
Minister for Housing under Section 30 of the
Housing Act 1980. In 1999/2000, Homeswest
moved to charge market rents established by the
Valuer General’s Office. Market rents are reviewed
annually.
In July 1997, under the Commonwealth and State
Housing Agreement, Homeswest began charging
tenants who transferred or moved into their
properties a rent amounting to 25 per cent of the
assessable household income. From February 2000,
tenants who had been charged at a lower base rate
moved up to a rate of 23 per cent.
Homeswest tenants on a rental subsidy have their
rent reviewed on the anniversary of their moving into
the property or at any time they have a change in
their income of more than $10 per week.
Loan Interest Rates
Pursuant to section 42 of the Housing Act 1980, the
Commission may, by determination approved by the
Minister and published in the Government Gazette,
fix a standard rate of interest to apply to loans.
The interest rate is determined after having regard to
the Commission’s cost of funds, the level of borrower
concessions provided across the various home loan
schemes and the effective home loan lending rates
charged by financial institutions once all added costs
are taken into account.
The maximum home loan rate charged by the
Commission is currently 8per cent pa. This rate was
published in the Government Gazette on June 16,
2000
D ISABILITY S ERVICES P LAN
DSC Outcomes:
Existing services are adapted to meet the
needs of people with disabilities:
The Community Disability Housing Program was
reviewed and the Community Housing Programs
Policy Manual was developed and launched in April
2000. Homeswest’s rental discretionary policy allows
flexibility of policy approach to housing assistance for
people with disabilities.

Access to Homeswest offices is improved:
DSC forms “Access Improvement Have Your Say!”
were circulated to all Homeswest offices for
customers to provide feedback on any access changes
they need from Homeswest Offices and facilities.
Access audits and required upgrade works of all
Homeswest offices were completed.
Information about Homeswest’s facilities and
services is provided in formats that enhance
communication with people with disabilities:
With the change to the Ministry of Housing in
mid-1999, all new brochures have been printed and
an Internet site established which provides
information on the Ministry of Housing’s facilities and
services.
Opportunities are provided for people with
disabilities to participate in public
consultations, grievance mechanisms and
decision making processes:
Continuation of the Appeals mechanism, which
includes three independent community
representatives. People with disabilities were
included in consultations carried out for the
Community Disability Housing Program review and
the Community Housing Policy and Procedures
review.
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
Advice and services are delivered by staff who
are aware of and understand the needs of
people with disabilities:
Expansion of the Occupational Therapist service to
provide on-the-job disability awareness training to
staff in the metropolitan area and an advisory service
to country regional staff. Continuation of Mental
Health Awareness training to staff, in conjunction
with the Health Department, through a dedicated
program presented by a mental health psychiatric
nurse.
W OMEN’ S P LAN
During the year the Ministry continued to progress its
commitments in the Government Two Year Plan for
Women 1999-2001, coordinated by the Women’s
Policy Office. The Ministry is contributing to the
priority areas of Customer Focus, Safety and Decision
Making.
Customer Focus
Initiatives
Homeswest aims to have its organisational staffing
profile reflect its customer profile. The target groups
include representation of women in level 5 and
above.
Outcomes
Representation of women in level 5 and above
positions was 22.6 per cent, an increase on the
previous year. During the year, further female
appointments were made to senior management
positions within the Ministry.
99

100
Safety
Initiatives
Homeswest will:
Continue to provide assistance to victims of
domestic violence in accordance with policy
guidelines.
Provide training for staff on issues relating to
domestic violence and continue to invite
representatives from local community
organisations, such as women’s refuges, to attend.
Provide services through its Crisis
Accommodation Program for a variety of target
groups, including single women and women with
children escaping domestic violence. This
includes short-term crisis (refuge)
accommodation; exit point/transitional housing
for women leaving short-term crisis
accommodation; and safe houses, including safe
houses for Aboriginal women in the North-West
in consultation with Aboriginal communities.
Provide housing for people leaving short-term
crisis accommodation through the Community
Housing Program and mainstream rental housing.
Promote women’s safety by maintaining elements
of safety in individual Homeswest housing
projects, including use of external security
lighting in carparks and access ways, landscaping
to avoid potential hiding places and installation of
security features in rental houses.
Maintain safety features in Homeswest housing,
including the installation of smoke alarms in new
rental homes and retro-fitting of existing ones.
Provide training for all staff on the value of workforce
diversity and reducing and addressing
harassment.
Outcomes
The Ministry continued its ongoing commitment to
training staff in dealing with victims of domestic
violence, with one course conducted in the
metropolitan area involving 27 participants.
Services provided through its Crisis Accommodation
Program (CAP) for single women and women with
children escaping domestic violence included
providing one refuge, nine exit point/transitional
houses and an extension to one refuge and major
upgrades to another. Women-headed households
form the majority of clients housed under other target
groups in CAP and CHP.
In October 1999, a pilot workshop was held at the
Mirrabooka Regional Office for 12 workers working
with Aboriginal people from the metropolitan
women’s refuges. The aim was to go through policies
relating to domestic violence, provide an overview of
the Ministry processes and contact persons and
provide information on alternative housing options.
The Ministry continued to provide security and safety
features, spending $897,000 installing security
features during the year.
Staff training in EEO/Diversity Awareness Training
continued with six courses presented to 60 staff.

Decision Making
Initiatives
Homeswest is committed to increase the participation
of women in decision-making and their
representation in management positions. This
includes:
Developing plans to improve the employment
status of women within the organisation.
Implementing a mechanism to ensure that all
managers are responsible for and measured on
the achievement of EEO/diversity targets.
Continuing to provide a family-friendly
workplace through flexible working options,
including teleworking.
Outcomes
Representation of women in level 5 and above
positions was 22.6 per cent, an increase on the
previous year.
The report on career development for Ministry staff –
focusing on women – was completed, with strategies
on career development incorporated into the Human
Resource Strategic Plan.
The Ministry is also continuing its Across All Agency
commitments specified in Appendix 1 of the
Government Two Year Plan for Women 1999-2001,
Vol 2, “From Policy to Action”.
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
Western Australian Centenary of Women’s
Suffrage
The Ministry fulfilled its commitments to the
Centenary including the production of a brochure on
housing options. This was expanded into an
Information Kit containing brochures and an
information sheet outlining the products and services
offered by the Ministry. The Information Kit was
distributed to a number of providers of services to
women to be used as a resource kit.
S ENIORS’ PLAN
The Ministry progressed its commitments to the fiveyear
plan for Western Australia’s Maturing Population
- “Time On Our Side, 1998-2003” - which comprises
12 priority areas. The Ministry contributed to
Housing and Independence. The Plan is coordinated
by the Office of Seniors Interests, with 32 State
Government agencies contributing.
Three pilot seniors housing projects demonstrating
best practice in affordable housing for seniors over 55
years were completed in 1999/2000. All three
projects are based on the Ministry’s 1998/99 Aged
Persons Units Design Brief, plus recommendations
from the Seniors Housing Reference Group and
Health Department’s “Stay on your Feet – prevention
of falls, safe environment” campaign.
The new design brief was introduced in June 1999 to
improve and increase safety and access features for
seniors.
101

102
The brief includes a level entry front door threshold,
wider doors and passages and many other features to
assist in improving the quality of life of the Ministry’s
senior tenants.
In addition to these features, the three senior housing
project units include additional features which reduce
the trip hazard and incidence of falls. These features
include the removal of all steps, shower recesses that
have a gradient design with the usual one brick high
hob removed, and external paving gradient to
entrances.
The three projects encompass the Ageing in Place
principles, where tenants can remain in their own
homes for as long as possible without their homes
becoming inaccessible due to the ageing process.
The 7 units completed in Bentley were open for
public display during Seniors Week in 1999,
Mandurah’s 4 units were opened for public display on
December 13, 1999 and the 10 units completed in
Tuart Hill were opened for public display in June
2000.
R EGIONAL C USTOMERS
Since June 1998, the Ministry of Housing has been
represented on an interagency steering committee
with the aim of developing a Regional Development
Policy. The intent of the policy is to improve regional
development outcomes through increased
cooperation and coordination across government
agencies, rather than through a directive or legislative
approach. This policy has been completed and
released.
As part of this process, five high-order objectives
were identified for regional customer service delivery:
Regional customers have equitable (in
comparison to Perth) access to the services
provided.
Regional customers are informed of the services
available to them.
The organisation uses regional suppliers.
The organisation consults with regional
communities about the effects of proposed
changes.
The organisation supports local planning
processes.
The Ministry is ensuring all the above objectives are
met.
FAMILY AND D OMESTIC V IOLENCE
P LAN
The Ministry’s commitment to customers facing
domestic violence is to provide them with access to
affordable and secure rental accommodation, with all
applicants considered for emergency and priority
housing assistance.
The Ministry continues to fund crisis accommodation
for anyone in the community who requires it,
including victims of domestic violence. The Ministry
has made available 10 units for people escaping
domestic violence, including safe houses in several
areas. The Crisis Accommodation Program (CAP)
complements the Commonwealth-based Supported
Accommodation Assistance Program (SAAP).

A program known as Exit Point assists those moving
from supported accommodation such as refuges into
long-term non-supported accommodation.
The Ministry has developed a broad protocol with the
WA Department of Family and Children’s Services to
cooperate on the issue of domestic violence. Local
protocols have also been developed for regional areas,
and the Ministry’s Regional Managers meet regularly
with representatives of Family and Children’s
Services.
Ministry staff have access to a training course titled
“Dealing with Victims of Domestic Violence”. This
training course is available to all staff, but is
mandatory for all staff in customer service roles, for
example Accommodation Managers.
The Ministry also acts as a referral point to other
agencies and crisis centres for customers who
approach the Ministry, and has brochures available on
domestic violence and the services provided by the
Ministry.
The following policies and programs make specific
reference to domestic violence:
Emergency and priority housing.
Transfer of tenancy to partner.
Consideration of domestic violence circumstances
in respect to assessment of damages to tenancies
(i.e. tenant liability).
Provision of security measures to existing
housing.
Provision of bond assistance.
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
Supported housing programs (e.g. Manguri
Headleasing program and Housing Assistance
Program).
Crisis Accommodation Program - capital funding
to community groups to provide refuge/crisis
accommodation.
C USTOMER G ROUP R EPORTING
The table below provides reference points for
reporting on Customer Groups in the Ministry of
Housing’s 1999/2000 Annual Report.
Customer Group Page Reference
Women 99-100
People with a Disability 64, 66-67, 98-99
Youth 50-51
Indigenous 72-83, 90
Non-English Speaking 52
Seniors 57, 101-102
Regional Customers 51, 102
103

(
State Housing)
Commission
104
Performance Indicators

Auditor General’s Opinion
To the Parliament of Western Australia
THE STATE HOUSING COMMISSION
PERFORMANCE INDICATORS FOR THE YEAR ENDED JUNE 30, 2000
Scope
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
I have audited the key effectiveness and efficiency performance indicators of The State Housing Commission
for the year ended June 30, 2000 under the provisions of the Financial Administration and Audit Act 1985.
The Board of Commissioners is responsible for developing and maintaining proper records and systems for
preparing and presenting performance indicators. I have conducted an audit of the key performance indicators
in order to express an opinion on them to the Parliament as required by the Act. No opinion is expressed on
the output measures of quantity, quality, timeliness and cost.
My audit was performed in accordance with section 79 of the Act to form an opinion based on a reasonable
level of assurance. The audit procedures included examining, on a test basis, evidence supporting the amounts
and other disclosures in the performance indicators, and assessing the relevance and appropriateness of the
performance indicators in assisting users to assess the Commission's performance. These procedures have been
undertaken to form an opinion as to whether, in all material respects, the performance indicators are relevant
and appropriate having regard to their purpose and fairly represent the indicated performance.
The audit opinion expressed below has been formed on the above basis.
Audit Opinion
In my opinion, the key effectiveness and efficiency performance indicators of The State Housing Commission
are relevant and appropriate for assisting users to assess the Commission's performance and fairly represent the
indicated performance for the year ended June 30, 2000.
D D R PEARSON
AUDITOR GENERAL
August 30, 2000
105

106
CERTIFICATION OF PERFORMANCE INDICATORS
We hereby certify that the performance indicators included in the 2000 Annual Report, are based on proper
records and fairly represent the performance of The State Housing Commission for the 1999/2000 financial
year.
L. GUTHREY
CHAIRMAN
G.L. JOYCE
BOARD MEMBER
MANAGING DIRECTOR
25 AUGUST 2000

M INISTRY OF H OUSING 2000 ANNUAL R EPORT
Performance Indicators 1999/2000
O UTCOME 1: REALISTIC HOME OWNERSHIP OPPORTUNITIES FOR LOW
TO MODERATE INCOME W ESTERN A USTRALIANS.
Provide a range of affordable home ownership opportunities to help people secure housing finance, which
they may not otherwise obtain through the private sector.
1.1 Percentage of demand met from home loan applicants.
Effectiveness Indicator
Percentage of demand met from home loan applicants measures the effectiveness of the home loan products to
meet the demand from eligible home loan customers.
The Ministry was able to assess 100% of applications received for home loan assistance in 1999/2000.
96/97 97/98 98/99 99/00
Percentage of eligible home loan
applicants assisted with a loan 100% 100% 100% 100%
1.2 Percentage of loan accounts in arrears.
Effectiveness Indicator
Percentage of loan accounts in arrears measures how effective the Ministry’s home ownership products are in
meeting need without putting customers in housing difficulty. It is calculated by dividing the number of accounts
in arrears by the total number of active accounts.
The percentage of loan accounts in arrears for the Ministry’s home ownership products increased from a
historic low of 2.04% in June 1999 to 2.33% in June 2000.
The percentage of loan accounts in arrears for Keystart customers has remained the same in June 2000.
Keystart loans is the growing portfolio, while the Total Other Loans portfolio continues to diminish. In
1999/2000 the Keystart portfolio made up 77% of the total loan portfolio. Therefore a combined figure has
been included in the graph below.
107

108
Performance Indicators 1999/2000
Percentage of loan accounts in arrears for Total Other Loans increased in June 2000. This loan portfolio is
diminishing with the remaining customers in these specialised loan schemes having limited incomes, with a
high proportion on single incomes and or statutory benefits. Some of these customers have indicated they are
experiencing difficulties in managing loan repayments and general living expenses. Increasing interest rates
during the year have also contributed to the decreased level of affordability. The percentage of accounts in
arrears in June 1999 was exceptionally low.
4.50%
4.00%
3.50%
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
Keystart
Total Other Loans
All loans combined
% of Accounts in Arrears
Jun 97
4.24%
1.75%
3.37%
Jun 98
2.73%
1.96%
2.50%
Jun 99
2.27%
1.38%
2.04%
Jun 00
2.27%
2.55%
2.33%

O UTPUT: HOME O WNERSHIP.
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
Ensure that home ownership products and services are delivered in the most cost efficient manner.
1.3 Management cost per current loan account.
Efficiency Indicator
Management cost per current loan account measures the cost efficiency in delivering home ownership products
and services and is calculated by dividing gross management costs by the total number of existing loans
(consolidated loans operation includes Keystart and Total other loan products).
Nominal refers to the face value of the money. Real refers to the value of money adjusted for inflation (Consumer
Price Index – All Groups Perth).
On average, it costs $274 to administer each Ministry of Housing loan account in 1999/2000, an increase of
4.5% compared to the previous year.
This year, the cost has been influenced by an increase in corporate overhead costs across the Ministry, much of
it the result of an expansion in the use of information services across the organisation. This includes the
implementation of the internet and intranet in the organisation, introduction of the Caretaker mainframe
software system, GST compatibility and Y2K testing, and an increase in the number and standard of personal
computers on the network. The on-going maintenance of the computer systems requires increased post
development support which impacts on the management expenses result.
Overall, total loans have increased by 2.6%, as homebuyers have continued to take advantage of favourable
home ownership market conditions.
In the later part of the financial year, strategies have been introduced by the Ministry to improve the cost
efficiency of the Ministry’s home loans operations. This has included a significant reduction in the Scheme
Manager Fees charged to Keystart and outsourcing the Ministry’s internal home loan function, which will result
in a reduction in the cost of the Ministry’s loan operations.
$340
$330
$320
$310
$300
$290
$280
$270
$260
$250
Nominal Management Cost
Real Management Cost
Nominal and Real Management Costs per Loan
96/97
$318
$330
97/98
$306
$319
98/99
$262
$268
99/00
$274
$274
109

110
Performance Indicators 1999/2000
O UTCOME 2: ACCESS TO AFFORDABLE RENTAL ACCOMMODATION FOR
LOW TO MODERATE INCOME W ESTERN A USTRALIANS.
Provide access to affordable rental accommodation (based on the household income) which offers security of
assistance to Western Australians.
2.1 Waiting times for accommodation – New Applicants
Effectiveness Indicators
Waiting times for accommodation measures the extent to which public rental housing provision is meeting the
need of eligible rental applicants. This is calculated by taking the households which were housed in the year and
calculating the difference between the time the customer applied and when they were housed for both new
applicants and for those who are in existing Ministry rental accommodation and who wish to transfer.
The average and median waiting times both increased by a quarter of a month in 1999/2000. The percentage
housed within 1 month and within 1 year has decreased. The percentage housed after 3 years has increased,
those between 3-5 years have increased while the percentage housed after 5 years decreased compared to
1998/1999.
Waiting Time for Rental Accommodation
94/95 95/96 96/97 97/98 98/99 99/00
Average 16 1 / 2 months 14 1 / 2 months 13 months 15 months 13 months 13 1 / 4 months
Median 7 1 / 2 months 5 1 / 2 months 5 months 6 1 / 4 months 5 3 % Housed Within
/ 4 months 6 months
1 Month
% Housed Within
25.94% 28.94% 30.25% 28.15% 29.67% 27.65%
1 Year
% Housed After
58.54% 63.47% 67.71% 62.29% 65.07% 64.11%
more than 3 Years 17.72% 13.31% 10.60% 13.06% 9.88% 11.02%
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Distribution of Waiting Times for Rental
Accommodation 1994/95 - 1999/00
94/95 95/96 96/97 97/98 98/99 99/00

Waiting times for accommodation – Transfer applicants
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
Despite the additional numbers of transfers to be accommodated for the New Living program, there has been
an overall improvement in the average waiting time for Ministry tenants wishing to transfer to another Ministry
rental property. The average has decreased by 13 / 4 months in 1999/2000. Median waiting times remained the
same. The percentage housed within 1 month and within 1 year increased. The percentage housed after 3
years decreased, especially those housed after 5 years.
Waiting Time for Rental Transfers
95/96 96/97 97/98 98/99 99/00
Average 11 1 / 4 months 9 1 / 2 months 10 months 7 3 / 4 months 6 months
Median 4 1 / 2 months 3 months 3 1 / 2 months 3 months 3 months
% Housed Within 1 Month 27.27% 29.78% 28.14% 27.85% 28.60%
% Housed Within 1 Year 77.21% 78.62% 78.69% 82.64% 86.73%
% Housed After More Than 3 Years 7.93% 8.34% 7.56% 4.15% 2.01%
100%
80%
60%
40%
20%
0%
Distribution of Waiting Times for Transfers
1995/1996 - 1999/2000
95/96 96/97 97/98 98/99 99/00

112
Performance Indicators 1999/2000
O UTPUT: RENTAL H OUSING
Ensure that the Ministry maximises the use of its physical assets.
2.3 Average days vacant per rental property.
Efficiency Indicator
Average days vacant per rental property measures the length of time that a property remains vacant between
vacation of one household and occupation of another. This impacts on the Ministry’s ability to house tenants and
manage rental revenue. Rental properties are required to undergo maintenance prior to occupation by new
tenants.
The figures do not include weekends and public holidays, new properties, properties earmarked for demolition or
those that are not lettable, (ie. through vandalism and lack of demand). The average days vacant is
calculated by dividing the total number of days vacant for the year by the total number of properties relet
during the year.
In 1999/00, on a statewide basis, it took on average 9.6 days to relet a property and 10.2 days on a country
basis. This is comparable to 1998/99 and meets the 10 day target. The metropolitan average decreased to 9.2
days in 1999/00.
Average Days Vacant per Rental Property
Year Metro Country State Target
1989/90 16 17 17 16
1990/91 13 17 15 15
1991/92 12 14 13 12
1992/93 14 15 14 10
1993/94 14 13 14 10
1994/95 9 11 10 10
1995/96 10 8 9 10
1996/97 10 8 10 10
1997/98 11 8 10 10
1998/99 10 10 10 10
1999/00 9 10 10 10

2.4 Management cost per rental property
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
Efficiency Indicator
Management cost per rental property measures the cost efficiency of rental housing and is calculated by dividing
gross management costs by the total rental stock.
Nominal refers to the face value of the money. Real refers to the value of money adjusted for inflation (Consumer
Price Index – All Groups Perth).
Management costs per rental property have increased over the 1999/2000 financial year to $1,260 per rental
property. This year, the cost has been influenced by an increase in corporate overhead costs across the Ministry,
much of it the result of an expansion in the use of information services across the organisation. This includes
the implementation of the internet and intranet in the organisation, introduction of the Caretaker mainframe
software system, GST compatibility and Y2K testing, and an increase in the number and standard of personal
computers on the network. The on-going maintenance of the computer systems requires increased post
development support which impacts on the management expenses result.
Direct rental management costs have increased by $0.98m, well within the parameters of the Work Place
Agreement and in line with inflation.
Overall, there has been a decrease in the number of rental properties, particularly in mainstream rental, as a
result of the Ministry’s New Living urban renewal programs which have continued to expand over the financial
year.
$1,300
$1,250
$1,200
$1,150
$1,100
$1,050
$1,000
$950
Nominal Management Cost
Real Management Cost
Nominal and Real Management Costs per
Rental Property
96/97
$1,065
$1,107
97/98
$1,119
$1,166
98/99
$1,117
$1,143
99/00
$1,260
$1,260
113

114
Performance Indicators 1999/2000
2.5 Proportion of tenants in receipt of a rental subsidy, average subsidy.
Effectiveness Indicator
This indicator measures how targeted is the Ministry’s public rental assistance. To gain access to public rental
housing, applicants cannot own any property and must be income eligible. The income eligibility limits are set by
applying the Henderson Equivalence Scale, based on household structure, to average weekly earnings. Tenants
are required to pay no more than 25% of assessable household income in rent. If this is less than the individual
property market rent of the property, then they receive a rental subsidy.
The proportion of tenants receiving subsidies indicates the level of targeting by the Ministry. A higher number
reflects greater targeting to those on low to moderate incomes.
All Ministry tenants are currently paying less than or equal to 25% of their income on rent.
At June 30, 2000, 84.4% of the Ministry tenants were receiving a subsidy, remaining at the same level as in
1998/99.
Over the past few years, the annual rent-to-income review (to determine whether tenants are still eligible to
receive a subsidy) and tighter controls resulting in better matching of tenant incomes have contributed to a
decrease in the proportion of tenants receiving a rental subsidy over the past few years. Despite this more than
8 out of 10 tenants receive a rental subsidy.
There has also been a continued decrease in the average subsidy in the past few years, with the average subsidy
in 1999/00, $54.44 per week, a minimal decrease on the 1998/99 figure.
The decreases have been partly attributable to new tenants now paying 25% of income in rent and existing
tenants moving to 23% in 1999/2000 (moving from 21.2% to 22.5% over 1997/98 and 1998/99). The decrease
in the subsidy was lower in 1999/2000 compared to previous years with changes to market rents with the
commencement of individual property market rents in 1999/2000.
100%
95%
90%
85%
80%
75%
70%
Proportion % (Y1)
Average subsidy $ (Y2)
Proportion of Tenants in Receipt of a Subsidy,
Average Subsidy
93/94
88.79
59.02
94/95
89.79
60.65
95/96
89.24
58.94
96/97
88.31
57.71
97/98
87.01
56.06
98/99
84.40
54.84
99/00
84.40
54.44
$65
$60
$55
$50
$45
$40

M INISTRY OF H OUSING 2000 ANNUAL R EPORT
O UTCOME 3: LAND FOR SALE TO W ESTERN A USTRALIANS ON LOW TO
MODERATE INCOMES AND FOR THE M INISTRY’ S RENTAL
PROGRAM.
Provide land through broad hectare development (for land that has had no previous urban use), New Living
urban renewal - estates improvement and redevelopment program (for land that has previously been used for
urban purposes, including older public housing estates), or joint ventures.
The success of the Ministry supplying land for the rental program is covered by the performance indicators
under Outcome 2.
3.1 Distribution of the Ministry’s land sales compared with the overall
market.
Effectiveness Indicator
The performance indicator compares the percentage of land sales for the Ministry against the overall market in
different price ranges. The greater the proportion of land sold by the Ministry in lower ranges reflects its
participation in the low to moderate income market compared to the overall market.
The performance of the land program is measured against how well the Ministry has provided land to those in the
lower price market.
Vacant single residential lots are defined as zoned for single residential development, zoned between R10 and R35
(inclusive), not zoned commercial, industrial, rural etc, not capable of supporting more than 2 dwellings (ie over
duplex size), not multiple parcels, and not sales to other government departments and companies.
Market sales are obtained from the Valuer General’s Office and filtered for single vacant land sales as defined
above.
The Ministry continues to target its land program to the lower end of the market. The Ministry sold 1350
vacant residential lots in 1999/2000, with the majority (56.29%) to people buying land at prices of $59,999
and below. In comparison only 35.85% of sales in the overall market were in that price range.
81.70% of Ministry land sales are below $79,999 compared to 55.96% in the overall market.
Distribution of land sales
$ Market Ministry
No. % No. %
0 – 19,999 94 1.68 3 0.22
20,000 – 39,999 430 7.69 133 9.85
40,000 – 59,999 1481 26.48 624 46.22
60,000 – 79,999 1125 20.11 343 25.41
80,000 – 99,999 598 10.69 102 7.56
100,000+ 1865 33.35 145 10.74
115

116
Performance Indicators 1999/2000
Ministry
Market
Distribution of Land Sales Ministry and Market
1999/2000
0% 20% 40% 60% 80% 100%
$0-19,999
O UTPUT L AND
$20,000-39,999 $40,000-59,999
$60,000-79,999 $80,000-99,999 $100,000+
Ensure that the production of land for rental housing and for sale is cost efficient.
3.2 Management costs as a percentage of land operations.
Efficiency Indicator
This indicator measures the efficiency of land operations by calculating the proportion of administration to total
land sold externally and internally to the construction program, the proportion of consultant costs compared to
the total value of capital works and the proportion of selling costs compared to sales revenue.
In 1999/2000 there was an increase in the administration ratio to 5.86% compared to 1998/1999. The
increase is due to a 10% decrease in land sales revenue generated from land operations and land transferred to
the construction programme.
The consultant ratio has decreased to 9.94% in 1999/2000 compared to 1998/1999 as there has been a
reduction in joint venture consultants and increased capital works.
Selling costs increased to 7.84% compared to 1998/1999 resulting from a decrease in land sales revenue.
15%
14%
13%
12%
11%
10%
9%
8%
7%
6%
5%
4%
3%
Administration
Consultant Fees
Selling Expenses
Management Costs as a % of Land Operations
94/95
4.08
7.43
3.13
95/96
3.81
8.65
5.54
96/97
4.85
10.69
7.77
97/98 98/99
5.70
12.63
6.45
4.35
14.47
5.68
99/00
5.86
9.94
7.84

(
State Housing)
Commission
Financial Statements
M INISTRY OF H OUSING 2000 ANNUAL R EPORT
117

Auditor General’s Opinion
To the Parliament of Western Australia
THE STATE HOUSING COMMISSION FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2000
Scope
I have audited the accounts and financial statements of The State Housing Commission for the year ended June 30, 2000 under the
provisions of the Financial Administration and Audit Act 1985. The financial statements include the consolidated accounts of the
consolidated entity comprising the Commission and the entities it controlled at the year's end or from time to time during the
financial year.
The Board of Commissioners is responsible for keeping proper accounts and maintaining adequate systems of internal control,
preparing and presenting the financial statements, and complying with the Act and other relevant written law. The primary
responsibility for the detection, investigation and prevention of irregularities rests with the Board of Commissioners.
My audit was performed in accordance with section 79 of the Act to form an opinion based on a reasonable level of assurance.
The audit procedures included examining, on a test basis, the controls exercised by the Commission to ensure financial regularity in
accordance with legislative provisions, evidence to provide reasonable assurance that the amounts and other disclosures in the
financial statements are free of material misstatement and the evaluation of accounting policies and significant accounting estimates.
These procedures have been undertaken to form an opinion as to whether, in all material respects, the financial statements are
presented fairly in accordance with Accounting Standards, other mandatory professional reporting requirements and the Treasurer's
Instructions so as to present a view which is consistent with my understanding of the Commission's and the consolidated entity's
financial position, the results of their operations and their cash flows.
The audit opinion expressed below has been formed on the above basis.
Audit Opinion
In my opinion,
(i) the controls exercised by The State Housing Commission provide reasonable assurance that the receipt, expenditure and
investment of moneys and the acquisition and disposal of property and the incurring of liabilities have been in accordance with
legislative provisions; and
(ii) the Operating Statement, Statement of Financial Position and Statement of Cash Flows of the Commission and the Consolidated
Operating Statement, Consolidated Statement of Financial Position and Consolidated Statement of Cash Flows of the
consolidated entity and the Notes to and forming part of the financial statements are based on proper accounts and present fairly
in accordance with applicable Accounting Standards, other mandatory professional reporting requirements and the Treasurer's
Instructions, the financial position of the Commission and the consolidated entity at June 30, 2000 and the results of their
operations and their cash flows for the year then ended.
D D R PEARSON
AUDITOR GENERAL
August 30, 2000
118

Certification of Financial Statements
The accompanying financial statements of The State Housing Commission and the accompanying consolidated financial statements
have been prepared in compliance with the provisions of the Financial Administration and Audit Act 1985, from proper accounts and
records, to present fairly the financial transactions for the year ended 30 June, 2000 and the financial position as at 30 June, 2000.
At the date of signing, we are not aware of any circumstances which would render the particulars included in the financial statements
misleading or inaccurate.
L. GUTHREY
CHAIRMAN
G. JOYCE
BOARD MEMBER
MANAGING DIRECTOR
J. MULLEN
PRINCIPAL ACCOUNTING OFFICER
25 AUGUST 2000
119

Operating Statement
for the year ended 30 June 2000
120
THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
CONSOLIDATED S.H.C
NOTE June 2000 June 1999 June 2000 June 1999
$000 $000 $000 $000
REVENUE
Rental revenue 3 111,696 111,141 111,696 111,141
Interest revenue 4 136,998 114,547 63,533 39,846
Net profit on the sale of assets 5 38,865 33,671 38,865 33,671
Developers contributions 1,932 1,461 1,932 1,461
Other operating revenue 6 17,884 1,602 17,492 1,254
Commonwealth grants and contributions 7 101,536 100,533 101,536 100,533
TOTAL REVENUE 408,911 362,955 335,054 287,906
EXPENSES
Community support programs 8 26,558 19,984 26,558 19,984
Depreciation & amortisation 9 40,730 36,225 38,834 35,514
Interest expense 10 132,200 114,995 90,746 67,769
Administration & employment expenses 11 53,630 45,038 52,865 44,391
Rental expenses 12 125,755 106,733 125,755 106,733
Sundry expenses 13 24,645 21,668 9,490 5,822
TOTAL EXPENDITURE 403,518 344,643 344,248 280,213
OPERATING PROFIT/(LOSS) BEFORE GRANTS AND
SUBSIDIES FROM GOVERNMENT 5,393 18,312 (9,194) 7,693
GRANTS AND SUBSIDIES FROM GOVERNMENT
State appropriations, grants and subsidies 7 15,499 2,756 15,499 2,756
Resources received free of charge 14 - 7,749 - 7,749
15,499 10,505 15,499 10,505
OPERATING PROFIT AFTER GRANTS AND
SUBSIDIES FROM GOVERNMENT 2(i) 20,892 28,817 6,305 18,198
Opening balance of unappropriated profits 1,190,620 1,161,529 1,124,195 1,105,997
Transfer from interest assistance Lowstart reserve 213 274 - -
CLOSING BALANCE OF UNAPPROPRIATED PROFITS 1,211,725 1,190,620 1,130,500 1,124,195

Statement of Financial Position
as at June 30 2000
THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
CONSOLIDATED S.H.C
NOTE June 2000 June 1999 June 2000 June 1999
$000 $000 $000 $000
CURRENT ASSETS
Cash resources 15 63,103 77,516 53,011 71,799
Restricted cash resources 16 6,513 5,699 6,513 5,699
Receivables 17 18,647 26,098 11,563 15,305
Inventories 18 62,082 66,317 62,082 66,317
Investments 19 5,023 5,280 200 340
Other 20 3,025 3,632 7,517 7,733
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
158,393 184,542 340,686 506,853
Investments & loans 19 1,813,088 1,720,667 844,734 434,589
Rental properties 21 2,734,520 2,636,416 2,734,520 2,636,416
Community housing properties 22 97,153 81,309 97,153 81,309
Shared equity properties 23 96,894 90,792 96,894 90,792
Other properties 24 23,908 25,939 23,908 25,939
Plant & equipment 25 5,722 4,776 5,637 4,660
Work in progress 81,270 57,372 81,270 57,372
Freehold land 263,345 254,822 263,345 254,822
Joint venture land 26 23,484 23,941 23,484 23,941
Other 27 67,862 63,458 64,439 59,861
TOTAL NON-CURRENT ASSETS 5,207,246 4,959,492 4,235,384 3,669,701
TOTAL ASSETS 5,365,639 5,144,034 4,576,070 4,176,554
CURRENT LIABILITIES
Borrowings 28 517,581 763,984 217,581 358,984
Creditors 29 19,420 18,575 19,420 18,575
Lease liabilities 32 - 53 - 53
Other 30 28,127 29,689 14,443 13,922
Provisions 31 5,970 5,221 5,970 5,221
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
571,098 817,522 257,414 396,755
Borrowings 28 1,825,670 1,491,568 1,435,366 1,015,849
Creditors 29 24 23 24 23
Provisions 31 41,853 42,540 41,853 42,540
TOTAL NON-CURRENT LIABILITIES 1,867,547 1,534,131 1,477,243 1,058,412
TOTAL LIABILITIES 2,438,645 2,351,653 1,734,657 1,455,167
NET ASSETS 2(ii) 2,926,994 2,792,381 2,841,413 2,721,387
EQUITY
Asset revaluation reserve 33 (i) 1,350,366 1,319,542 1,350,366 1,319,542
Asset realisation reserve 33 (ii) 360,547 277,650 360,547 277,650
Interest assistance Lowstart reserve 34 4,356 4,569 - -
Unappropriated profits 35 1,211,725 1,190,620 1,130,500 1,124,195
TOTAL EQUITY 2,926,994 2,792,381 2,841,413 2,721,387
121

Statement of Cash Flows
for the year ended 30 June 2000
122
THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
CONSOLIDATED S.H.C
NOTE June 2000 June 1999 June 2000 June 1999
$000 $000 $000 $000
CASHFLOWS FROM OPERATING ACTIVITIES
Receipts
Commonwealth grants and contributions 101,535 100,533 101,535 100,533
Rental receipts 111,829 112,525 111,829 112,525
Fees & other receipts 2,523 2,547 2,554 2,577
Developers contributions 1,432 1,461 1,432 1,461
Interest received
Payments
138,365 115,615 64,473 34,992
Payment for administration & employment costs
Interest paid to
(63,609) (54,124) (53,141) (45,059)
Commonwealth government (27,053) (27,458) (27,053) (27,458)
WA Treasury Corporation (52,448) (24,043) (52,448) (24,043)
Other interest & finance charges paid (45,032) (36,111) (221) (223)
Rental expenses (118,582) (93,362) (118,582) (93,362)
General expenses (16,227) (1,949) (16,227) (1,949)
NET CASH FROM OPERATING ACTIVITIES 36 32,733 95,634 14,151 59,994
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from the sale of property, plant & equipment 157,755 151,776 157,755 151,776
Payments for purchase of property, plant & equipment 37 (205,085) (172,746) (205,079) (172,710)
Home purchase receipts 407,746 264,427 36,367 35,235
Home purchase advances (513,639) (578,768) (24,902) (35,069)
Other investing payments - - (435,000) (365,000)
Other investing receipts 177 46 140,177 46
NET CASH USED IN INVESTING ACTIVITIES (153,046) (335,265) (330,682) (385,722)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of borrowings from
WA Treasury Corporation (145,647) (5,336) (145,647) (5,336)
Commonwealth government (10,086) (9,680) (10,086) (9,680)
Other non-government sources
Proceeds from
(2,815,416) (2,728,688) - -
WA Treasury Corporation 452,532 365,000 452,532 365,000
Other non-government sources 2,623,316 2,642,009 - -
NET CASH (USED FOR)/PROVIDED BY FINANCING ACTIVITIES 104,699 263,305 296,799 349,984
CASH FLOWS FROM/TO GOVERNMENT
Repayment of Borrowings from
Consolidated fund (2,554) (2,893) (2,554) (2,893)
Interest paid to consolidated fund
Proceeds from
(10,848) (10,619) (10,848) (10,619)
Other grants & subsidies 15,499 2,756 15,499 2,756
NET CASH FROM GOVERNMENT 2,097 (10,756) 2,097 (10,756)
NET INCREASE(DECREASE)IN CASH HELD (13,517) 12,918 (17,635) 13,500
OPENING CASH BALANCE 87,529 74,611 76,532 63,032
CLOSING CASH BALANCE 38 74,012 87,529 58,897 76,532

THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
Notes to and forming part of the accounts
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies adopted by The State Housing Commission (operating as The Ministry of Housing), the Keystart
Housing Scheme Trust and the Homeswest Loan Scheme Trust are stated in order to assist in a general understanding of the financial
statements. Unless otherwise stated these policies are consistent with those adopted in the preceding year.
(a) Basis of Accounting
The financial statements constitute a general purpose financial report which has been prepared in accordance with Australian
Accounting Standards and Urgent Issues Group (UIG) Consensus Views as applied by the Treasurer’s Instructions. Several of these are
modified by the Treasurer’s Instructions to vary application, disclosure, format and wording. The Financial Administration and Audit
Act and the Treasurer’s Instructions are legislative provisions governing the preparation of financial statements and take precedence
over Australian Accounting Standards and UIG Consensus Views.
The modifications are intended to fulfil the requirements of general application to the public sector together with the need for greater
disclosure and also to satisfy accountability requirements.
If any such modification has a material or significant financial effect upon the reported results, details of that modification and where
practicable, the resulting financial effect, are disclosed in individual notes to these financial statements.
The statements have been prepared on the accrual basis of accounting using the historical cost convention, with the exception of
certain non-current assets which have been stated at valuation as provided by the Valuer General’s Office. Additions to non-current
physical assets since valuation are stated at cost.
(b) Principles of Consolidation
The consolidated financial statements have been prepared by combining the financial statements of all entities that comprise the
consolidated entity, being The State Housing Commission (the parent entity) and its controlled entities as defined in AAS 24
“Consolidated Financial Reports”. A list of controlled entities appears in note 20. Consistent accounting policies have been
employed in the preparation and presentation of the consolidated financial statements.
The consolidated financial statements include the information and results of each controlled entity from the date on which the agency
obtains control and until such time as the agency ceases to control such entities.
In preparing the consolidated financial statements, all inter entity balances and transactions, and unrealised profits arising within the
consolidated entity are eliminated in full.
(c) Legal form of Controlled Entities
(i) The Keystart Housing Scheme includes a trust and company structure set up to enable funds to be raised from financial
markets at competitive rates and on lent to Keystart borrowers for the purchasing of owner occupied homes.
The structure comprises of:
- The Keystart Housing Scheme Trust established by a Deed of Trust in the State of Western Australia, dated 5 April 1989
with Keystart Loans Ltd (a special purpose nominal capital company) as trustee, and a consortium comprising of Stamfords
Accounts Advisers & Consultants Pty Ltd and I.F & I Securities Pty Ltd as Scheme Managers. The State Housing Commission is
the sole beneficiary of the trust.
- Keystart Support Trust - A special purpose trust used to provide financial support to the Scheme if required. The State
Housing Commission is the sole beneficiary of this trust.
- Keystart Bonds Ltd - A special purpose nominal capital company being the Issuer with Oakvale Capital Ltd as treasury
manager.
- Keystart Support Pty Ltd - A special purpose nominal capital company as trustee of the support trust.
A consortium comprising of Stamfords Accounts Advisers & Consultants Pty Ltd and I.F & I Securities Pty Ltd are the scheme
managers.
- Keystart Support (Subsidiary) Pty Ltd - A special purpose nominal capital company created to assist Keystart Support P/L in
its obligations.
All of these Keystart trusts and companies have been established in the State of Western Australia.
The financial transactions for these entities have no effect on the operating result of The State Housing Commission . Under
the structure funds are raised through Keystart Bonds Ltd and on lent to borrowers through a network of retailers. The State
Housing Commission provides a support arrangement to the structure through the Support Trust.
(ii) Homeswest Loan Scheme Trust - A special purpose Trust established by a Trust Deed dated 19 September 1995 to operate as
an agent for The State Housing Commission's home loan schemes. In it's capacity as agent, the Trust receives advances for
the purpose of providing mortgages to Western Australians. The State Housing Commission is the sole beneficiary of the
Trust, and Keystart Loans Ltd is the trustee of the Trust.
123

THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
Notes to and forming part of the accounts
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED
(d) Ownership Interest
The State Housing Commission is the instigator of the Keystart Housing Scheme and has effective control over the whole structure
either directly or indirectly through various Agreements which constitute the structure and to which it is a party. The Board of
Directors of the Keystart group of companies comprise three Directors from The State Housing Commission , one Director from the
Western Australian Treasury Corporation and two Directors from the private sector.
The ownership interest held by The State Housing Commission in the Companies is as follows:
Keystart Bonds Ltd : 100% of the total shareholding
Keystart Loans Ltd : 100% of the total shareholding
Keystart Support Pty Ltd : 100% of the total shareholding
Keystart Support (Subsidiary) Pty Ltd: 100% of the total shareholding
The State Housing Commission is obligated to the Scheme in that it has given various representations and obligations to the extent
that it will meet cash shortfalls and losses from the Scheme to investors or other creditors. The State Housing Commission's
obligations are contained in a Support Agreement to the various participants of the Scheme. No subsidies were required for the
1999/2000 financial year, as the Trust achieved a surplus of $ 14,800 M (refer to note 19 (b) ).
(e) Rental Properties
Rental Properties are shown at valuation in the financial statements. Increments have been taken to the asset revaluation reserve,
decrements have been offset against previous increments relating to this asset class. Independent valuations are provided by the
Valuer General, R.F Williams FAPI(Val) on an annual basis. The valuations are as at July 1 in the previous year ( see note 21). The basis
of valuations is primarily integrity three assessments ( external property inspection). The Valuer General has valued land and dwellings
at current market value. Properties less than one year old are shown at construction cost plus land at current value.
(f) Community Housing
Community Housing Properties includes properties acquired under the Commonwealth programs of Crisis Accommodation and
Community Housing, and are shown at valuation in the financial statements.
Increments have been taken to the asset revaluation reserve, decrements have been offset against previous increments relating to this
asset class. Independent valuations are provided by the Valuer General, R.F Williams FAPI(Val) on an annual basis. The valuations are as
at July 1 in the previous year (see note 21 ). The basis of valuations is primarily integrity three assessments ( external property
inspection) . The Valuer General has valued land and dwellings at current market value. Properties less than one year old are shown
at construction cost plus land at current value.
(g) Leases
The State Housing Commission's rights and obligations under finance leases, which are leases that effectively transfer to The State
Housing Commission substantially all of the risks and benefits incidental to ownership of the leased items, are initially recognised as
assets and liabilities equal in amount to the present value of the minimum lease payments. The assets are disclosed as property and
vehicles under lease, and are amortised to the operating statement over the period during which The State Housing Commission is
expected to benefit from the use of the leased assets. Minimum lease payments are allocated between interest expense and reduction
of the lease liability, according to the interest rate implicit in the lease.
Finance lease liabilities are allocated between current and non-current components. The principal component of lease payments due
on or before the end of the succeeding year is disclosed as a current liability, and the remainder of the lease liability is disclosed as a
non-current liability.
The State Housing Commission has entered into a number of operating lease arrangements for buildings and vehicles where the
lessors effectively retain all of the risks and benefits incidental to ownership of the items held under the operating leases. Equal
instalments of the lease payments are charged to the Operating Statement over the lease term, as this is representative of the pattern
of benefits to be derived from the leased property.
(h) Freehold Land
Freehold Land consists of both broadhectare and developed lots, excluding lots available for external sale, which are valued at cost
plus capitalised costs. Developed lots on which dwellings are subsequently constructed by The State Housing Commission are
transferred to the stock of Rental Properties at market value as determined by the Valuer General at the date of practical completion.
The difference between valuation and the historical cost of the land transferred to Rental Properties represents a revaluation
increment which is brought to account as an increase in the Asset Revaluation Reserve.
124

THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED
(i) Shared Equity Properties
Shared Equity Properties represents the equity in dwellings constructed or purchased under the Shared Equity Loan Scheme. Under the
scheme The State Housing Commission and the purchaser are co-owners of the properties constructed or purchased as Tenants in
Common with the purchaser having total occupation of the dwelling. The State Housing Commission's share of equity in these
properties are shown at valuation in the financial statements. Increments have been taken to the asset revaluation reserve, decrements
have been offset against previous increments relating to this asset class. Independent valuations are provided by the Valuer General,
R.F Williams FAPI(Val) on an annual basis. The valuations are as at July 1 in the previous year ( see note 21). The basis of valuations is
primarily integrity three assessments (external property inspection). The Valuer General has valued land and dwellings at current
market value.
(j) Other Properties
Includes offices and commercial properties which are owned or are leased from various organisations and individuals. Properties are
shown at valuation in the financial statements. Increments have been taken to the asset revaluation reserve, decrements have been
offset against previous increments relating to this asset class. Independent valuations are provided by the Valuer General, R.F Williams
FAPI(Val) on an annual basis. The valuations are as at July 1 in the previous year (see note 21). The basis of valuations is primarily
integrity three assessments (external property inspection). The Valuer General has valued land and dwellings at current market value.
(k) Joint Venture Land
Joint Venture Land represents the equity in Joint Venture land development projects. Development costs represent the agreed
proportion of development costs expended plus capitalised costs. Land owned by The State Housing Commission is shown at cost
plus capitalised costs.
(l) Work in Progress
Work in Progress is recorded at cost which includes all costs directly related to specific constructions plus capitalised charges incurred
in connection with these activities.
(m) Revaluation Reserves
Independent valuations are provided by the Valuer General, R.F Williams FAPI(Val) on an annual basis.
The valuations are as at July 1 in the previous year ( see note 21). The basis of valuations is primarily integrity three assessments
(external property inspection) . The Valuer General has valued land and dwellings at current market value. The market valuation
approach considers the value a given asset is likely to realise, assuming it was sold on the open market following a reasonable selling
period.
Upon the sale of an asset which has been revalued the valuation increment/decrement is transferred from the Asset Revaluation
Reserve to the Asset Realisation Reserve.
(n) Inventories
Inventories are represented by new dwellings and land held at cost, which is less than the net realisable value. Cost includes the cost
of acquisition/development and other capitalised costs. After development is completed, other holding charges are expensed as
incurred.
(o) Depreciation and Amortisation
All Non-Current Assets having a limited useful life are systematically depreciated over their useful lives in a manner which reflects the
consumption of their future economic benefits.
Depreciation for The State Housing Commission assets is calculated on a straight line basis so as to write off the net carrying value of
each item of property, plant and equipment, using rates which are reviewed annually.
Depreciation for Keystart plant and equipment is calculated using the reducing balance method. The variance in methods is not
considered to be of a material nature.
The cost of improvements to or on leased rental properties and offices are amortised over the unexpired period of the lease or the
estimated useful life of the improvements, whichever is the shorter.
125

THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
Notes to and forming part of the accounts
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED
(o) Depreciation and Amortisation continued
Major Depreciation Rates are: 2000 1999
Rental Properties 2% 2%
Community Housing Properties 2% 2%
Shared Equity Properties 3% 3%
Other Properties
- Commercial Properties 2% 2%
- Office Properties 5% 5%
Plant & Equipment 10% - 36% 10% - 36%
Other Assets
- Joint Charity Properties 2% 2%
- Computing Software 20% - 24% 20% - 24%
(p) Other Assets
(a) Other assets
(i) Joint Charity Projects
Joint Charity Projects are represented by the capital contribution made by The State Housing Commission to a joint
arrangement which provides alternative methods of securing appropriate rental housing for eligible people. The capital
contribution is amortised over a period of 50 years on a straight line basis . The State Housing Commission receives service
potential from the assets with the operational revenue and outgoings being conferred to the Joint Charity Partner as the
Project Manager. Cash contributions from Joint Charity Partners are disclosed as Developers Contributions in the Operating
Statement.
126
(ii) Computing Development and Software
Costs, including capitalised administration expenses, incurred on development of computer systems and software are
amortised from the commencement of live production of the system on a straight line basis over 5 years.
(b) Deferred Expenditure
(i) Computing Development and Software
Costs, including capitalised administration expenses, incurred on development of computer systems and software are
deferred to future periods to the extent that future benefits are expected beyond any reasonable doubt to be equal or
exceed those costs. Deferred costs are amortised from the commencement of live production of the system on a straight line
basis over the period of their expected benefit.
(ii) Capital Establishment and Development
Establishment and development costs having a future benefit are capitalised and amortised on a straight line basis, over
periods during which benefits are expected to be received. This is taken as being five years. Premiums paid on financial
instruments are capitalised and amortised on a straight line basis, over the term of the financial instrument.
(q) Rental Property Revenue and Rental Subsidy
(i) Rental Property Revenue
The State Housing Commission charges market rents, structured on the basis of regional rental markets. Rental property
revenue represents the potential rental income calculated using this structure less vacancies and concessions granted
throughout the year.
(ii) Rental Subsidy
The State Housing Commission's adopted policy is that no tenant will be required to pay more than 25% of household
assessable income in the form of rent, with the majority of tenants paying between 23% and 25%. Rental subsidy represents
the difference between market rents and the actual amount of rent paid by tenants.

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED
(r) Income Recognition
Income from land and property sales is recognised when the contract for sale becomes unconditional.
THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
(s) Insurance
The State Housing Commission maintains an appropriate level of insurance cover over selected insurable risks. Property Assets
continue to be insured with the commercial insurance market against major loss for a maximum of $40 Million for any one event, any
one location; deductibles of $10 Million for Rental Properties and $100,000 for Offices apply to any claims against the policy.
The State Housing Commission's insurance program continues to be a combination of insurance policies provided by commercial
insurance providers and the Western Australian Government's Risk Cover program. This approach has achieved resultant benefits in
terms of;
(1) improved policy terms and conditions;
(2) increased indemnity cover; and
(3) premium savings.
The insurance program reflects the requirements of TI 109 Insurance and is complimented by a comprehensive approach to Risk
Management and prudent management policies and practices.
(t) Employee Entitlements
(i) Annual Leave
This entitlement is recognised at current remuneration rates and is measured at the amount unpaid at the reporting date in
respect to employees’ service up to that date.
(ii) Long Service Leave
Long service leave entitlements are calculated in accordance with AAS 30 and includes both accrued and pro-rata leave. The
non-current portion of long service leave is provided for at the net present value of the future expected payments. Long
service leave liabilities have been established by actuarial assessment.
(iii) Superannuation
Staff may contribute to the Superannuation and Family Benefits Act scheme, a defined benefits pension scheme now closed
to new members, or to the Gold State Superannuation Scheme, a defined benefit and lump sum scheme now also closed to
new members. All staff who do not contribute to either of these schemes become non-contributory members of the West
State Superannuation Scheme, an accumulation fund complying with the Commonwealth Government's Superannuation
Guarantee (Administration ) Act 1992.
The liability for superannuation charges incurred under the Superannuation and Family Benefits Act pension scheme,
together with the pre-transfer service liability for employees who transferred to the Gold State Superannuation Scheme, are
provided for at reporting date. Cash is set aside to fund the liability. The State Housing Commission's Superannuation
liability was $33.990M at balance date, of which $20.700M had been set aside in cash and $13.290M had been used
internally within The State Housing Commission Land programme.
The liabilities for superannuation charges under the Gold State Superannuation Scheme and West State Superannuation
Scheme are extinguished by quarterly payment of employer contributions to the Government Employees Superannuation
Board.
The note disclosure required by paragraph 51(e) of AAS30 ( being the employers share of the difference between accrued
superannuation benefits and the attributable net market value of plan assets) has not been provided. State Scheme
deficiencies are recognised by the State in its whole of Government reporting. The Government Employees Superannuation
Board's records are not structured to provide the information for the Authority. Accordingly deriving the information for The
State Housing Commission is impractical under current arrangements and thus any benefits thereof would be exceeded by
the cost of obtaining the information.
127

THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
Notes to and forming part of the accounts
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED
(u) Provision for Doubtful Debts
The State Housing Commission: The provision represents 65% of Rental Accounting vacated rental property debts; 15% of current
debt and 75% of prior debt on the current account; 40% of Bond Debt work in progress at mercantile agent; 100% of the expected
shortfall from forfeited properties and general debtors over 12 months old. The calculation of the provision is based on the
composition of the debtors accounts, the debt recovery performance of The State Housing Commission and the performance of the
external mercantile agent. The State Housing Commission provides an amount for 75% of the accumulated interest subsidy balance
on income based housing loans.
Keystart: Keystart has adopted the methodology of calculating the provision as recommended by the Australian Financial Institutions
Commission. The calculation consists of three components:
(i) Specific Provision - The specific provision is based on a review of all loans and an assessment of the potential bad debt exposure
of each loan.
(ii) Statutory Provision - The statutory provision is based on a formula as specified in the AFIC Prudential Standards contingent upon
the length of time the repayments are in arrears.
(iii) General Provision - A general provision of 0.50% of all loan account balances is provided for in the interest of prudent
accounting practice.
(v) Rental Expenses
Expenses incurred relating to The State Housing Commission's owned or leased rental properties are accounted for in the Rental
Expenses line of the Operating Statement. These expenses which directly relate to the Rental program include maintenance, rates,
insurance expenses and renovations and improvements.
It also includes the loss on demolitions and costs associated with the New Living projects.
(w) Comparative Figures
Comparative figures are, where appropriate, reclassified so as to be comparable with the figures presented in the current financial
year.
(x) Rounding
All amounts have been rounded to the nearest thousand dollars.
(y) Segment Information
The State Housing Commission operates in the one geographical location in the State of Western Australia. The Commission's
operations are divided into three specific programs. These are:
Rental Operations which is for the provision of access to affordable rental accommodation for low to moderate income Western
Australians; Loans which is the provision of realistic home ownership opportunities for low to moderate income Western Australians;
Land operations which is for the sale of land to Western Australians on low to moderate incomes and for the Ministry's rental
program.
(z) Development Levies
A Provision for fencing and landscaping on individual lots sold and community projects associated with first homebuyers incentives to
purchase State Housing Commission land. The provision represents the estimated liability for future claims by the purchasers.
128

2. SEGMENTED REPORTS
2 (i) SEGMENTED OPERATING STATEMENT
June 1999 CONSOLIDATED June 2000
Rental Loans Land Elimination Total Rental Loans Land Elimination Total
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
110,629 30 482 - 111,141 Rental revenue 3 111,104 26 566 - 111,696
22 114,352 173 - 114,547 Interest revenue 4 75 136,907 16 - 136,998
(2,904) (511) 37,086 - 33,671 Net profit on the sale of assets 5 6,346 102 32,417 - 38,865
- - 4,964 (4,964) - Intersegment sales - - 3,027 (3,027) -
1,461 - - - 1,461 Developers contributions 1,432 - 500 - 1,932
621 704 277 - 1,602 Other operating revenue 6 1,026 633 16,225 - 17,884
84,979 15,554 - - 100,533 Commonwealth grants and contributions 7 89,157 12,379 - - 101,536
194,808 130,129 42,982 (4,964) 362,955 TOTAL SEGMENT REVENUE 209,140 150,047 52,751 (3,027) 408,911
SEGMENT EXPENSES
19,158 826 - - 19,984 Community support programs 8 26,045 513 - - 26,558
33,567 2,390 268 - 36,225 Depreciation & amortisation 9 36,543 3,795 392 - 40,730
21,367 79,915 13,713 - 114,995 Interest expense 10 21,932 97,347 12,921 - 132,200
35,431 4,193 5,414 - 45,038 Administration & employment expenses 11 42,236 4,883 6,511 - 53,630
106,510 - 223 - 106,733 Rental expenses 12 125,657 - 98 - 125,755
4,720 15,860 1,088 - 21,668 Sundry expenses 13 5,648 18,159 838 - 24,645
220,753 103,184 20,706 - 344,643 TOTAL SEGMENT EXPENSES 258,061 124,697 20,760 - 403,518
(25,945) 26,945 22,276 (4,964) 18,312 OPERATING PROFIT (LOSS) (48,921) 25,350 31,991 (3,027) 5,393
10,505 - - - 10,505 Grants & subsidies from government 7 & 14 15,499 - - - 15,499
(15,440) 26,945 22,276 (4,964) 28,817 (33,422) 25,350 31,991 (3,027) 20,892
35,653 - (35,653) - - Intersegment transfers 24,858 - (24,858) - -
OPERATING PROFIT (LOSS) AFTER GRANTS
20,213 26,945 (13,377) (4,964) 28,817 & SUBSIDIES FROM GOVERNMENT (8,564) 25,350 7,133 (3,027) 20,892
THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
THE STATE HOUSING COMMISSION
110,629 30 482 - 111,141 Rental revenue 3 111,104 26 566 - 111,696
22 39,651 173 - 39,846 Interest revenue 4 75 63,442 16 - 63,533
(2,904) (511) 37,086 - 33,671 Net profit on the sale of assets 5 6,346 102 32,417 - 38,865
- - 4,964 (4,964) - Intersegment sales - - 3,027 (3,027) -
1,461 - - - 1,461 Developers contributions 1,432 - 500 - 1,932
621 356 277 - 1,254 Other operating revenue 6 1,026 241 16,225 - 17,492
84,979 15,554 - - 100,533 Commonwealth grants and contributions 7 89,157 12,379 - - 101,536
194,808 55,080 42,982 (4,964) 287,906 TOTAL SEGMENT REVENUE 209,140 76,190 52,751 (3,027) 335,054
SEGMENT EXPENSES
19,158 826 - - 19,984 Community support programs 8 26,045 513 - - 26,558
33,567 1,679 268 - 35,514 Depreciation & amortisation 9 36,543 1,899 392 - 38,834
21,367 32,689 13,713 - 67,769 Interest expense 10 21,932 55,893 12,921 - 90,746
35,431 3,546 5,414 - 44,391 Administration & employment expenses 11 42,236 4,118 6,511 - 52,865
106,510 - 223 - 106,733 Rental expenses 12 125,657 - 98 - 125,755
4,720 14 1,088 - 5,822 Sundry expenses 13 5,648 3,004 838 - 9,490
220,753 38,754 20,706 - 280,213 TOTAL SEGMENT EXPENSES 258,061 65,427 20,760 - 344,248
(25,945) 16,326 22,276 (4,964) 7,693 OPERATING PROFIT (LOSS) (48,921) 10,763 31,991 (3,027) (9,194)
10,505 - - - 10,505 Grants & subsidies from government 7 & 14 15,499 - - - 15,499
(15,440) 16,326 22,276 (4,964) 18,198 (33,422) 10,763 31,991 (3,027) 6,305
35,653 - (35,653) - - Intersegment transfers 24,858 - (24,858) - -
OPERATING PROFIT (LOSS) AFTER GRANTS
20,213 16,326 (13,377) (4,964) 18,198 & SUBSIDIES FROM GOVERNMENT (8,564) 10,763 7,133 (3,027) 6,305
129

Notes to and forming part of the accounts
2. SEGMENTED REPORTS
2 (ii) SEGMENTED ASSET REPORT
June 1999 CONSOLIDATED June 2000
Rental Loans Land Unallocated Total Rental Loans Land Unallocated Total
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Current Assets
67,580 79,538 (79,896) 10,294 77,516 Cash resources 15 37,993 66,870 (92,617) 50,857 63,103
4,733 - 966 - 5,699 Restricted cash resources 16 5,886 - 627 - 6,513
2,478 12,186 6,196 5,238 26,098 Receivables 17 7,610 8,981 2,101 (45) 18,647
1,616 - 64,701 - 66,317 Inventories 18 1,545 - 60,537 - 62,082
- 5,280 - - 5,280 Investments 19 - 5,023 - - 5,023
230 3,173 205 24 3,632 Other 20 127 2,702 152 44 3,025
76,637 100,177 (7,828) 15,556 184,542 Total Current Assets 53,161 83,576 (29,200) 50,856 158,393
Non-Current Assets
- 1,739,195 - 1,472 1,740,667 Investments & loans 19 - 1,831,705 - 1,383 1,833,088
2,636,416 - - - 2,636,416 Rental properties 21 2,734,520 - - - 2,734,520
81,309 - - - 81,309 Community housing properties 22 97,153 - - - 97,153
- 90,792 - - 90,792 Shared equity properties 23 - 96,894 - - 96,894
16 - 688 25,235 25,939 Other properties 24 - - 72 23,836 23,908
239 116 33 4,388 4,776 Plant & equipment 25 181 85 15 5,441 5,722
57,148 224 - - 57,372 Work in progress 81,026 244 - - 81,270
2,559 240 252,023 - 254,822 Freehold land 2,948 - 260,397 - 263,345
- - 23,941 - 23,941 Joint venture land 26 - - 23,484 - 23,484
51,304 3,597 - 8,557 63,458 Other 27 56,077 3,423 - 8,362 67,862
2,828,991 1,834,164 276,685 39,652 4,979,492 Total Non-Current Assets 2,971,905 1,932,351 283,968 39,022 5,227,246
2,905,628 1,934,341 268,857 55,208 5,164,034 Total Assets 3,025,066 2,015,927 254,768 89,878 5,385,639
130
THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
CURRENT LIABILITIES
9,636 747,576 6,772 - 763,984 Borrowings 28 10,391 502,663 4,527 - 517,581
11,842 38 25,378 1,317 38,575 Creditors 29 12,996 67 25,748 609 39,420
53 - - - 53 Lease liabilities 32 - - - - -
871 22,596 2,047 4,175 29,689 Other 30 4,229 20,560 1,952 1,386 28,127
- - 1,238 3,983 5,221 Provisions 31 - - 1,688 4,282 5,970
22,402 770,210 35,435 9,475 837,522 TOTAL CURRENT LIABILITIES 27,616 523,290 33,915 6,277 591,098
NON-CURRENT LIABILITIES
392,951 923,567 175,050 - 1,491,568 Borrowings 28 401,591 1,268,890 155,189 - 1,825,670
- - 23 - 23 Creditors 29 - - 24 - 24
- - 4,356 38,184 42,540 Provisions 31 - - 4,110 37,743 41,853
392,951 923,567 179,429 38,184 1,534,131 TOTAL NON-CURRENT LIABILITIES 401,591 1,268,890 159,323 37,743 1,867,547
415,353 1,693,777 214,864 47,659 2,371,653 TOTAL LIABILITIES 429,207 1,792,180 193,238 44,020 2,458,645
2,490,275 240,564 53,993 7,549 2,792,381 NET ASSETS 2,595,859 223,747 61,530 45,858 2,926,994

2. SEGMENTED REPORTS
2 (ii) SEGMENTED ASSET REPORT (continued)
June 1999 CONSOLIDATED June 2000
Rental Loans Land Unallocated Total Rental Loans Land Unallocated Total
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Current Assets
67,580 73,821 (79,896) 10,294 71,799 Cash resources 15 37,993 56,778 (92,617) 50,857 53,011
4,733 - 966 - 5,699 Restricted cash resources 16 5,886 - 627 - 6,513
2,478 1,393 6,196 5,238 15,305 Receivables 17 7,610 1,897 2,101 (45) 11,563
1,616 - 64,701 - 66,317 Inventories 18 1,545 - 60,537 - 62,082
- 340,000 - - 340,000 Investments 19 - 200,000 - - 200,000
230 7,274 205 24 7,733 Other 20 127 7,194 152 44 7,517
76,637 422,488 (7,828) 15,556 506,853 Total Current Assets 53,161 265,869 (29,200) 50,856 340,686
Non-Current Assets
- 453,117 - 1,472 454,589 Investments & loans 19 - 863,351 - 1,383 864,734
2,636,416 - - - 2,636,416 Rental properties 21 2,734,520 - - - 2,734,520
81,309 - - - 81,309 Community housing properties 22 97,153 - - - 97,153
- 90,792 - - 90,792 Shared equity properties 23 - 96,894 - - 96,894
16 - 688 25,235 25,939 Other properties 24 - - 72 23,836 23,908
239 - 33 4,388 4,660 Plant & equipment 25 181 - 15 5,441 5,637
57,148 224 - - 57,372 Work in progress 81,026 244 - - 81,270
2,559 240 252,023 - 254,822 Freehold land 2,948 - 260,397 - 263,345
- - 23,941 - 23,941 Joint venture land 26 - - 23,484 - 23,484
51,304 - - 8,557 59,861 Other 27 56,077 - - 8,362 64,439
2,828,991 544,373 276,685 39,652 3,689,701 Total Non-Current Assets 2,971,905 960,489 283,968 39,022 4,255,384
2,905,628 966,861 268,857 55,208 4,196,554 Total Assets 3,025,066 1,226,358 254,768 89,878 4,596,070
THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
CURRENT LIABILITIES
9,636 342,576 6,772 - 358,984 Borrowings 28 10,391 202,663 4,527 - 217,581
11,842 38 25,378 1,317 38,575 Creditors 29 12,996 67 25,748 609 39,420
53 - - - 53 Lease liabilities 32 - - - - -
871 6,829 2,047 4,175 13,922 Other 30 4,229 6,876 1,952 1,386 14,443
- - 1,238 3,983 5,221 Provisions 31 - - 1,688 4,282 5,970
22,402 349,443 35,435 9,475 416,755 TOTAL CURRENT LIABILITIES 27,616 209,606 33,915 6,277 277,414
NON-CURRENT LIABILITIES
392,951 447,848 175,050 - 1,015,849 Borrowings 28 401,591 878,586 155,189 - 1,435,366
- - 23 - 23 Creditors 29 - - 24 - 24
- - 4,356 38,184 42,540 Provisions 31 - - 4,110 37,743 41,853
392,951 447,848 179,429 38,184 1,058,412 TOTAL NON-CURRENT LIABILITIES 401,591 878,586 159,323 37,743 1,477,243
415,353 797,291 214,864 47,659 1,475,167 TOTAL LIABILITIES 429,207 1,088,192 193,238 44,020 1,754,657
2,490,275 169,570 53,993 7,549 2,721,387 NET ASSETS 2,595,859 138,166 61,530 45,858 2,841,413
Total Loans and Investments and total Creditors in the segmented assets report differ from the Statement of Financial Position due to a $20 million intersegment loan between the Loans and Land
segments. This transaction has been eliminated in the Statement of Financial Position.
131

THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
Notes to and forming part of the accounts
3. RENTAL REVENUE
CONSOLIDATED S.H.C
June 2000 June 1999 June 2000 June 1999
$000 $000 $000 $000
Rental Properties 204,124 204,075 204,124 204,075
Amenities Heating 1,877 1,925 1,877 1,925
Commercial Properties 2,199 2,667 2,199 2,667
Less Vacancies & Concessions:
208,200 208,667 208,200 208,667
Vacancies Rental Stock 9,223 9,095 9,223 9,095
Vacancies Amenities 78 112 78 112
Vacancies Commercial Properties 64 75 64 75
Concessions - Caretakers 67 38 67 38
Concessions - Community Playgrounds 190 26 190 26
Concessions - Other 3,485 2,406 3,485 2,406
Total Vacancies & Concessions 13,107 11,752 13,107 11,752
Rental Revenue
Less Rent Forgone:
195,093 196,915 195,093 196,915
Rebates Rental 82,396 84,682 82,396 84,682
Rebates Amenities 1,001 1,092 1,001 1,092
Total Rent Forgone 83,397 85,774 83,397 85,774
NET RENTAL REVENUE 111,696 111,141 111,696 111,141
4. INTEREST REVENUE
LOAN INTEREST
Keystart Secured Mortgage Advances 111,776 92,266 - -
Loans to Terminating Building Societies 1,493 1,872 1,493 1,872
113,269 94,138 1,493 1,872
The State Housing Commission Loan Schemes 14,768 15,620 14,768 15,620
Less Mortgage Subsidies 189 526 189 526
14,579 15,094 14,579 15,094
Deposit Assistance - 2 - 2
Total Loan Interest 127,848 109,234 16,072 16,968
OTHER INTEREST
Interest on Cash at Bank 4,507 3,200 4,507 3,200
Interest on Investments 4,538 1,970 42,849 19,535
Interest Other 105 143 105 143
Total Other Interest 9,150 5,313 47,461 22,878
Total 136,998 114,547 63,533 39,846
132

5. NET PROFIT ON THE SALE OF ASSETS
June 1999 June 2000
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Gross Book Selling Concess- Net Profit Gross Book Selling Concess- Net Profit
Proceeds Value Expenses ions (Loss) Proceeds Value Expenses ions (Loss)
CONSOLIDATED
440 508 - - (68) Community housing properties 140 135 - - 5
53,115 49,343 2,618 3,637 (2,483) Rental properties 81,932 66,363 5,134 4,260 6,175
5,462 5,692 - - (230) Shared equity properties 7,178 7,075 - - 103
116 159 - - (43) Properties plant & equipment 4 13 - - (9)
11,015 6,690 1,931 - 2,394 Inventories - Joint Venture Land 12,854 7,656 3,231 - 1,967
92,619 50,458 7,623 - 34,538 - Land 75,713 38,858 6,231 - 30,624
1,424 1,851 10 - (437) - House and land packages - - - - -
164,191 114,701 12,182 3,637 33,671 Total 177,821 120,100 14,596 4,260 38,865
THE STATE HOUSING COMMISSION
440 508 - - (68) Community housing properties 140 135 - - 5
53,115 49,343 2,618 3,637 (2,483) Rental properties 81,932 66,363 5,134 4,260 6,175
5,462 5,692 - - (230) Shared equity properties 7,178 7,075 - - 103
116 159 - - (43) Properties plant & equipment 4 13 - - (9)
11,015 6,690 1,931 - 2,394 Inventories - Joint Venture Land 12,854 7,656 3,231 - 1,967
92,619 50,458 7,623 - 34,538 - Land 75,713 38,858 6,231 - 30,624
1,424 1,851 10 - (437) - House and land packages - - - - -
164,191 114,701 12,182 3,637 33,671 Total 177,821 120,100 14,596 4,260 38,865
THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
Reconciliation of Net Profit / (Loss) to Historical Profit / (Loss)
$000 $000 $000 $000 $000 $000
Net Profit Realisation Historical Net Profit Realisation Historical
(Loss) Reserve Profit /(Loss) CONSOLIDATED (Loss) Reserve Profit /(Loss)
(68) 177 109 Community housing properties 5 42 47
(2,483) 44,199 41,716 Rental properties 6,175 52,806 58,981
(230) 1,358 1,128 Shared equity properties 103 1,275 1,378
(43) 1,880 1,837 Properties plant & equipment (9) 32 23
(2,824) 47,614 44,790 Total 6,274 54,155 60,429
133

THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
Notes to and forming part of the accounts
6. OTHER OPERATING REVENUE
CONSOLIDATED S.H.C
June 2000 June 1999 June 2000 June 1999
$000 $000 $000 $000
Bad Debts Recovered 639 466 639 466
Discount Received on Borrowings 16,131 - 16,131 -
Conveyancing Fees 371 493 371 493
Other Revenue 743 643 351 295
Total 17,884 1,602 17,492 1,254
Discount from borrowings revenue of $16.131m was realised by
the refinancing of State Housing Commission Consolidated Fund
capital through The Western Australian Treasury Corporation.
7. COMMONWEALTH AND STATE GRANTS
COMMONWEALTH GRANTS
Aboriginal Housing 17,526 16,142 17,526 16,142
Commonwealth Rental Grants 73,232 73,688 73,232 73,688
Crisis Accommodation & Community Housing 10,151 10,076 10,151 10,076
Interest Subsidised 627 627 627 627
Total 101,536 100,533 101,536 100,533
STATE APPROPRIATIONS, GRANTS AND SUBSIDIES
Government Appropriations - 2,706 - 2,706
STATE GRANTS
Department of Treasury 13,394 - 13,394 -
Aboriginal Affairs Department 1,185 - 1,185 -
Aboriginal Land Trust 100 - 100 -
Aboriginal & Torres Strait Islander Commission - 5 - 5
Department of Transport 250 - 250 -
Education Department of Western Australia 100 - 100 -
Health Department of Western Australia - 5 - 5
Main Roads Western Australia 470 - 470 -
Western Australian Department of Training - 40 - 40
Total 15,499 2,756 15,499 2,756
8. COMMUNITY SUPPORT PROGRAMS
Aboriginal Housing 24,325 17,557 24,325 17,557
Community Housing 1,719 1,599 1,719 1,599
Mortgage Relief - 114 - 114
MRAP - Cash Assistance 513 712 513 712
Rental Support 1 2 1 2
Total 26,558 19,984 26,558 19,984
134

9. DEPRECIATION AND AMORTISATION
THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
CONSOLIDATED S.H.C
June 2000 June 1999 June 2000 June 1999
$000 $000 $000 $000
Rental Properties & Other Assets
- Depreciation
Deferred Assets
34,508 33,242 34,456 33,180
- Amortisation
Finance Lease
6,205 2,917 4,361 2,268
- Amortisation 17 66 17 66
Total 40,730 36,225 38,834 35,514
10. INTEREST EXPENSE
Loan Funds 90,746 67,769 90,746 67,769
Keystart Bonds Ltd. - Commercial Paper 41,454 47,226 - -
Total 132,200 114,995 90,746 67,769
11. ADMINISTRATION AND
EMPLOYMENT EXPENSES
Board Expenses 203 199 203 199
Communication 2,526 2,062 2,497 2,007
Other Costs & Expenses 8,698 5,224 8,306 4,913
Office Rental & Accommodation 3,016 1,980 3,012 1,976
Other Personnel Costs 1,823 1,802 1,823 1,802
Salaries & Wages 33,484 31,642 33,404 31,571
Salaries & Wages on Costs 7,099 7,209 7,099 7,209
Stationery & Supplies 963 716 868 644
Less Credits:
57,812 50,834 57,212 50,321
Administration Capitalised 4,041 4,871 4,041 4,871
Recoups 1,067 2,006 1,098 2,036
Total Credits 5,108 6,877 5,139 6,907
Lease Expenses
Non Cancellable Operating Leases:
52,704 43,957 52,073 43,414
- Office Properties 350 284 216 180
- Motor Vehicles
Cancellable Leases
437 207 437 207
- Office Properties
Financial Leases
139 221 139 221
- Contingency Rental - 347 - 347
- Finance Lease Charges - 22 - 22
926 1,081 792 977
Net Administration & Employee Expenses 53,630 45,038 52,865 44,391
135

THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
Notes to and forming part of the accounts
11. ADMINISTRATION AND
EMPLOYMENT EXPENSES CONTINUED
The Employee Entitlement provisions have been adjusted by the
following amounts:
Long Service Leave ($115,000) $132,000
Annual Leave $341,000 ($273,000)
Superannuation ($368,000) ($342,000)
136
CONSOLIDATED S.H.C
June 2000 June 1999 June 2000 June 1999
$000 $000 $000 $000
Office Property Leases:
Lease commitments on non cancellable operating leases are:
Not later than 1 year 237 140 221 115
Later than 1 year & not later than 2 years 227 78 191 62
Later than 2 years & not later than 5 years 66 83 66 46
Later than 5 years - - - -
530 301 478 223
Motor Vehicle Leases:
Lease commitments on non cancellable operating leases are:
Not later than 1 year 365 273 365 273
Later than 1 year & not later than 2 years 97 103 97 29
Later than 2 years & not later than 5 years 28 - 28 -
Later than 5 years - - - -
490 376 490 302

12. RENTAL EXPENSES
THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
CONSOLIDATED S.H.C
June 2000 June 1999 June 2000 June 1999
$000 $000 $000 $000
Maintenance Expenses 29,182 27,510 29,182 27,510
Less Tenant Liability 2,478 2,611 2,478 2,611
26,704 24,899 26,704 24,899
Debt Collection Expenses 1,233 1,363 1,233 1,363
Estate Improvement Expenses 29,998 15,445 29,998 15,445
Estate Management Expenses 2,923 2,833 2,923 2,833
General Expenses 8,386 5,774 8,386 5,774
Insurance Expenses 4,040 4,259 4,040 4,259
Loss on Demolitions 8,202 13,820 8,202 13,820
Rates Expenses 32,687 31,821 32,687 31,821
Renovations & Improvements 11,501 6,419 11,501 6,419
Lease Expenses
Operating Lease Costs Were:
125,674 106,633 125,674 106,633
Rental Properties 81 100 81 100
81 100 81 100
Total Rental Expenses 125,755 106,733 125,755 106,733
Rental Property Leases:
Lease commitments on the non cancellable operating
leases outstanding are:
Not later than 1 year 81 81 81 81
Later than 1 year & not later than 2 years - 81 - 81
Later than 2 years & not later than 5 years - - - -
Later than 5 years - - - -
13. SUNDRY EXPENSES
81 162 81 162
Doubtful Debts Expenses 6,221 4,660 2,463 (1,079)
Fees - Keystart 9,680 8,247 - -
Grants & Subsidies - 30 - 30
Land Expenses 10 340 10 340
Loan Scheme Expenses 2,072 2,053 2,072 2,053
Other Expenses 6,662 6,338 4,945 4,478
Total 24,645 21,668 9,490 5,822
14. RESOURCES RECEIVED FREE OF CHARGE
Assets Received - 7,749 - 7,749
- 7,749 - 7,749
137

THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
Notes to and forming part of the accounts
15. CASH RESOURCES
138
CONSOLIDATED S.H.C
June 2000 June 1999 June 2000 June 1999
$000 $000 $000 $000
Cash at Bank - Operational 42,403 56,816 32,311 51,099
Cash at Bank - Superannuation 20,700 20,700 20,700 20,700
Total 63,103 77,516 53,011 71,799
16. RESTRICTED CASH RESOURCES
Rental Tenants Bonds 5,886 4,733 5,886 4,733
Joint Venture Cash 627 966 627 966
Total
Rental Tenants Bonds represents bond monies received by
The State Housing Commission from rental clients. These funds are
held in trust in accordance with the Residential Tenancies act. Joint
Venture Cash is restricted for the use of joint venture operations and
is controlled by the respective management groups.
6,513 5,699 6,513 5,699
17. RECEIVABLES
CURRENT
General 10,257 13,048 3,173 2,255
Joint Venture Receivables 1,503 2,149 1,503 2,149
Land Debtors 942 4,464 942 4,464
Other Rents 447 322 447 322
Rental Bonds Assistance 3,925 3,910 3,925 3,910
Rents from Tenants 5,950 6,423 5,950 6,423
23,024 30,316 15,940 19,523
Less Provision For Doubtful Debts 4,377 4,218 4,377 4,218
Net Receivables (Current) 18,647 26,098 11,563 15,305
18. INVENTORIES
Land held for Sale (Note 1(n) )
Cost of Acquisition and Development 45,453 55,640 45,453 55,640
Capitalised rates, taxes, administration and interest. 2,529 3,095 2,529 3,095
47,982 58,735 47,982 58,735
Joint Venture Land 12,555 6,037 12,555 6,037
House and Land Packages 1,545 1,545 1,545 1,545
Total Inventories 62,082 66,317 62,082 66,317

19. INVESTMENTS AND LOANS
THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
CONSOLIDATED S.H.C
June 2000 June 1999 June 2000 June 1999
$000 $000 $000 $000
CURRENT
Town & Country - 280 - -
Keystart Preferential Shares (d) - - 200,000 340,000
BNP Australia 5,023 5,000 - -
Total Current Investments 5,023 5,280 200,000 340,000
NON - CURRENT
Ellenbrook Management Pty Ltd (a) 24 24 24 24
Keystart Preferential Shares (d) - - 610,000 175
Total Non - Current Investments 24 24 610,024 175,024
LOANS TO HOMEBUYERS 1,800,143 1,699,332 210,486 228,220
Less Provision for Doubtful Debts 12,368 11,475 1,065 1,441
1,787,775 1,687,857 209,421 226,779
LOANS TO TERMINATING BUILDING SOCIETIES (c)
LOANS OTHER
23,734 31,110 23,734 31,110
Commercial Organisations 933 897 933 897
Local & Statutory Authorities 622 779 622 779
Total Loans 1,813,064 1,720,643 234,710 259,565
Total Non - Current Investments & Loans 1,813,088 1,720,667 844,734 434,589
(a) Interests are held in the following associated companies where the interest to the economic entity is material.
Principal Percentage of each
Name Activities share class held Dividends Value of
June 2000 June 1999 received Shares at
% % ($000) cost ($000)
Ellenbrook Management Pty Ltd Real estate Ord. 47.14 47.14 Nil 24
development
(b) Controlled entities and contribution to consolidated profit. (Note 1 c & d)
Contribution to Investment
Percentage Economic Entity Shares
Name Owned result ($000) at cost ($)
Jun-00 Jun-99 Jun-00 Jun-99 Jun-00 Jun-99
Keystart Bonds Ltd 100 100 Nil Nil 6 6
Keystart Loans Ltd 100 100 Nil Nil 6 6
Keystart Support Pty Ltd 100 100 Nil Nil 2 2
Keystart Support (Subsidiary) Pty Ltd 100 100 Nil Nil 2 2
Keystart Housing Scheme Trust 14,800 10,893
Keystart Support Trust Nil Nil
Homeswest Loan Scheme Trust Nil Nil
139

THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
Notes to and forming part of the accounts
19. INVESTMENTS AND LOANS CONTINUED
(c) Loans to Terminating Building Societies
Loans made by The State Housing Commission to Terminating Building Societies ("Approved Institutions" pursuant to the
Housing Loan Guarantee Act 1957 - 1973) are made by The State Housing Commission pursuant to the Commonwealth State
Housing Agreement Act and are in turn on lent to borrowers for the purpose of buying or building a home. Loans with a
balance of $23,734,000 at June 30, 2000 made by The State Housing Commission to these building societies are secured by a
floating charge over the assets of the societies. Monies on lent by the societies prior to 1985/86 totalling $5,220,000 are
covered by Mortgage Insurance taken out by the borrowers. Monies on lent by the societies in 1985/86 are indemnified by the
Treasurer. The Housing Loan Guarantee Act 1957-1973 was the means used to provide the indemnity. The amount of such
indemnities at June 30, 2000 was $831,000 (June 1999 $1,347,000). The State Housing Commission is responsible for any
shortfall realised for monies on lent by the societies subsequent to 1985/86. At June 30, 2000, the value of loans repayable in
respect of monies on lent since 1985/86 amounted to $17,683,000 (June 1999 $21,577,000).
(d) Keystart Preferential Shares
The Western Australian Treasury Corporation has provided The State Housing Commission with a $1,000 Million floating rate
loan facility to fund Keystart Loans Ltd. The State Housing Commission has purchased redeemable preference shares in Keystart
Loans Ltd. to the same value as the drawn down loan facility as security over the funds. The terms and conditions of the shares
reflect the terms and conditions of the loan facility. Keystart Bonds Ltd. meets all principal, interest and other costs associated
with the facility. To date $810 Million of this facility has been drawn down.
20. OTHER (CURRENT A SSETS)
140
CONSOLIDATED S.H.C
June 2000 June 1999 June 2000 June 1999
$000 $000 $000 $000
ACCRUED INCOME
Interest on Cash at Bank 374 479 374 479
Interest Keystart Shares - - 6,843 6,808
PREPAYMENTS
374 479 7,217 7,287
Insurance Premiums 127 220 127 220
Interest on Borrowings 2,351 2,707 - -
Joint Venture 152 205 152 205
Other 21 21 21 21
2,651 3,153 300 446
Total 3,025 3,632 7,517 7,733

21. RENTAL PROPERTIES
THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
CONSOLIDATED S.H.C
June 2000 June 1999 June 2000 June 1999
$000 $000 $000 $000
Rental Properties at Valuation
Improvements 1,478,596 1,439,762 1,478,596 1,439,762
Land 1,284,533 1,224,696 1,284,533 1,224,696
2,763,129 2,664,458 2,763,129 2,664,458
Less Accumulated Depreciation 29,457 28,944 29,457 28,944
2,733,672 2,635,514 2,733,672 2,635,514
Leasehold Improvements 2,241 2,305 2,241 2,305
Less Accumulated Depreciation 1,393 1,403 1,393 1,403
848 902 848 902
Rental Properties 2,734,520 2,636,416 2,734,520 2,636,416
The value of land and dwellings reported below is different from the valuation in the Government Property Register. The Government
Property Register shows the total number of properties as 25,660 and the total valuation of land and improvements as
$3,530,071,705. Differing dates of valuation have also caused variances.
The State Housing Commission valuations are as at 1/7/1998, the Government Property Register's are as at 1/7/1999. Differences in
the number of assets are mainly due to medium and high density units being shown as multiple units within the Ministry's records,
but which may only be shown as one unit within the Government Property Register.
The total number of assets within each class and their total costs within The State Housing Commission's records are as
follows:
Class Number of Assets Total Valuation ($000)
Rental Properties 35,953 2,763,129
Inventories 1,478 62,082
Shared Equity Properties 3,206 98,664
Freehold Land 1,702 263,345
Joint Venture Land 34 23,484
Community Housing Properties 850 98,473
Other Properties 38 24,364
43,261 3,333,541
141

THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
Notes to and forming part of the accounts
22. COMMUNITY HOUSING PROPERTIES
142
CONSOLIDATED S.H.C
June 2000 June 1999 June 2000 June 1999
$000 $000 $000 $000
Crisis Accommodation at Valuation
Improvements 24,407 18,470 24,407 18,470
Land 19,488 19,065 19,488 19,065
43,895 37,535 43,895 37,535
Community Housing at Valuation
Improvements 34,049 26,158 34,049 26,158
Land 20,529 18,816 20,529 18,816
54,578 44,974 54,578 44,974
98,473 82,509 98,473 82,509
Less Accumulated Depreciation:
Crisis Accommodation 668 600 668 600
Community Housing 652 600 652 600
1,320 1,200 1,320 1,200
Net Community Housing Properties 97,153 81,309 97,153 81,309
23. SHARED EQUITY PROPERTIES
The State Housing Commission Loan Properties at Valuation
Improvements 55,217 51,816 55,217 51,816
Land 43,447 40,535 43,447 40,535
98,664 92,351 98,664 92,351
Less Accumulated Depreciation 1,770 1,559 1,770 1,559
Net Shared Equity Properties 96,894 90,792 96,894 90,792

24. OTHER PROPERTIES
THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
CONSOLIDATED S.H.C
June 2000 June 1999 June 2000 June 1999
$000 $000 $000 $000
Other Properties at Valuation
Offices
Improvements 10,051 11,585 10,051 11,585
Land 9,577 9,610 9,577 9,610
19,628 21,195 19,628 21,195
Commercial
Improvements 1,226 1,291 1,226 1,291
Land 3,510 3,326 3,510 3,326
4,736 4,617 4,736 4,617
Joint Venture Buildings 75 761 75 761
24,439 26,573 24,439 26,573
Less Accumulated Depreciation:
Offices 503 571 503 571
Commercial 25 26 25 26
Joint Venture Buildings 3 73 3 73
531 670 531 670
23,908 25,903 23,908 25,903
Leasehold Improvements 510 1,040 510 1,040
Less Accumulated Depreciation 510 1,021 510 1,021
- 19 - 19
Capitalised Finance Lease
23,908 25,922 23,908 25,922
Office Property under Finance Lease - 1,329 - 1,329
Less Accumulated Amortisation - 1,312 - 1,312
- 17 - 17
Net Other Properties 23,908 25,939 23,908 25,939
143

THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
Notes to and forming part of the accounts
25. PLANT & EQUIPMENT
144
CONSOLIDATED S.H.C
June 2000 June 1999 June 2000 June 1999
$000 $000 $000 $000
Air Conditioning 468 468 468 468
Commercial Vehicles 520 520 520 520
Computing Facilities & Equipment 10,979 9,614 10,791 9,427
Furniture & Fittings 1,983 1,670 1,697 1,384
Office Machines & Equipment 1,574 1,396 1,527 1,354
Joint Venture Office Equipment 30 116 30 116
Plant & Equipment 21 21 21 21
Less Accumulated Depreciation:
15,575 13,805 15,054 13,290
Air Conditioning 230 184 230 184
Commercial Vehicles 339 281 339 281
Computing Facilities & Equipment 7,019 6,461 6,875 6,341
Furniture & Fittings 1,247 1,121 986 865
Office Machines & Equipment 984 881 953 858
Joint Venture Office Equipment 15 83 15 83
Plant & Equipment 19 18 19 18
9,853 9,029 9,417 8,630
Net Plant & Equipment 5,722 4,776 5,637 4,660
26. JOINT VENTURE LAND
The State Housing Commission enters into joint venture operations for the development of Land holdings.
Listed below are the current joint venture operations:
23,484 23,941 23,484 23,941
Ellenbrook
The State Housing Commission holds a 47.138% interest in a joint venture operation named Ellenbrook for the development of land
at Ellenbrook.
Seacrest
The State Housing Commission holds a 50% interest in a joint venture operation named Seacrest for the development of land at
Wandina, Geraldton.
Dalyellup Beach
The State Housing Commission holds a 50% interest in a joint venture operation named Dalyellup Beach for the development of land
at Dalyellup Beach, Bunbury.
Woodrise Estate
The State Housing Commission holds an interest in a joint venture operation named Woodrise Estate for the development of State
Housing Commission land in Albany. The State Housing Commission does not contribute to the development of the land. The revenue
received is 30% share in the profit after all development costs have been met.
Palm Beach
The State Housing Commission holds an interest in a joint venture operation named Palm Beach for the development of State
Housing Commission land at Palm Beach, Rockingham. The State Housing Commission does not contribute to the development of the
land. The revenue received is $13,000.00 upon the sale of each lot and 50% share in the profit after all development costs have been
met.

26. JOINT VENTURE LAND CONTINUED
JOINT VENTURE OPERATIONS
June 1999 June 2000
Ellenbrook Seacrest Dalyellup Woodrise Palm Total Ellenbrook Seacrest Dalyellup Woodrise Palm Total
Beach Estate Beach Beach Estate Beach
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
CURRENT ASSETS
966 - - - - 966 Cash resources 334 77 216 - - 627
2,149 - - - - 2,149 Receivables 1,423 2 78 - - 1,503
6,037 - - - - 6,037 Inventories 8,310 - 4,245 - - 12,555
205 - - - - 205 Other 151 1 - - - 152
9,357 - - - - 9,357 10,218 80 4,539 - - 14,837
NON-CURRENT ASSETS
33 - - - - 33 Office Equipment 15 - - - - 15
688 - - - - 688 Buildings 72 - - - - 72
9,415 - - - - 9,415 Development costs 1 9,897 351 - - - 10,248
10,136 - - - - 10,136 9,984 351 - - - 10,335
19,493 - - - - 19,493 TOTAL ASSETS 20,202 431 4,539 - - 25,172
CURRENT LIABILITIES
440 - - - - 440 Creditors and Borrowings 317 22 697 - - 1,036
1,238 - - - - 1,238 Provisions 1,594 3 91 - - 1,688
1,678 - - - - 1,678 1,911 25 788 - - 2,724
THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
NON-CURRENT LIABILITIES
23 - - - - 23 Creditors and Borrowings 24 - - - - 24
1,238 - - - - 1,238 Provisions 1,594 - - - - 1,594
1,261 - - - - 1,261 1,618 - - - - 1,618
2,939 - - - - 2,939 TOTAL LIABILITIES 3,529 25 788 - - 4,342
16,554 - - - - 16,554 NET ASSETS 16,673 406 3,751 - - 20,830
14,526 - - - - 14,526 State Housing Commission Land 1 8,914 1,117 905 228 2072 13,236
1. The total of development costs and State Housing Commission Land represents the $23.484 million Joint Venture figure in the Statement of Financial Position.
145

THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
Notes to and forming part of the accounts
27. OTHER ASSETS
OTHER ASSETS
CONSOLIDATED S.H.C
June 2000 June 1999 June 2000 June 1999
$000 $000 $000 $000
Joint Charity Projects 60,006 54,142 60,006 54,142
Less Accumulated Amortisation 3,929 2,838 3,929 2,838
56,077 51,304 56,077 51,304
Computing Software 3,784 3,552 3,385 3,153
Less Accumulated Amortisation 2,069 2,366 1,672 1,983
1,715 1,186 1,713 1,170
Computing Development 9,700 21,205 9,700 21,205
Less Accumulated Amortisation 3,051 15,468 3,051 15,468
6,649 5,737 6,649 5,737
Total Other Assets 64,441 58,227 64,439 58,211
DEFERRED EXPENDITURE
Capital Establishment & Development 9,427 7,742 - -
Less Accumulated Amortisation 6,006 4,161 - -
3,421 3,581 - -
Computing Development - 1,650 - 1,650
Total Deferred Expenditure 3,421 5,231 - 1,650
Total Other Assets 67,862 63,458 64,439 59,861
28. BORROWINGS
CURRENT
Consolidated Funds - 3,033 - 3,033
State Nominated Funds 2,955 2,828 2,955 2,828
WA Treasury Corporation 206,394 345,868 206,394 345,868
Commonwealth Advances 8,232 7,255 8,232 7,255
Keystart Bonds Ltd. - Commercial Paper 300,000 405,000 - -
NON - CURRENT
517,581 763,984 217,581 358,984
Consolidated Funds - 138,199 - 138,199
State Nominated Funds 300,029 302,984 300,029 302,984
WA Treasury Corporation 845,845 276,939 845,845 276,939
Commonwealth Advances 289,492 297,727 289,492 297,727
Medium Term notes 350,000 350,000 - -
Keystart bonds 40,304 125,719 - -
1,825,670 1,491,568 1,435,366 1,015,849
Total Borrowings 2,343,251 2,255,552 1,652,947 1,374,833
146

29. CREDITORS
THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
CONSOLIDATED S.H.C
June 2000 June 1999 June 2000 June 1999
$000 $000 $000 $000
CURRENT
General 10,945 11,738 10,945 11,738
Rental Properties Water Consumption 1,553 1,665 1,553 1,665
Joint Venture Creditors 1,036 440 1,036 440
Rental Tenants Bonds 5,886 4,732 5,886 4,732
Total 19,420 18,575 19,420 18,575
Included in the Creditors general line are the unspent funds associated
with the Indian Ocean Territories service delivery arrangements as per
the following:
June 2000
Amounts carried forward from previous financial year -
Payments made by the Commonwealth for IOT services $20,000.00
Cost of services $19,794.00
Amounts carried forward to following financial year $206.00
NON CURRENT
Joint Venture Creditors 24 23 24 23
24 23 24 23
30 OTHER (CURRENT L IABILITIES)
Accrued Expenses:
Administrative & General Expenses 5,603 4,988 2,284 1,953
Interest on Borrowings 19,396 21,587 9,031 8,855
24,999 26,575 11,315 10,808
Unearned Income 3,128 3,114 3,128 3,114
Total Other (Current Liabilities) 28,127 29,689 14,443 13,922
147

THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
Notes to and forming part of the accounts
31. PROVISIONS
148
CONSOLIDATED S.H.C
June 2000 June 1999 June 2000 June 1999
$000 $000 $000 $000
CURRENT
Employee Entitlements
Long Service Leave 1,789 1,831 1,789 1,831
Annual Leave 2,493 2,152 2,493 2,152
Other
4,282 3,983 4,282 3,983
Joint Venture Provisions 1,688 1,238 1,688 1,238
Total Current 5,970 5,221 5,970 5,221
NON-CURRENT
Employee Entitlements
Long Service Leave 3,753 3,826 3,753 3,826
Superannuation 33,990 34,358 33,990 34,358
Other
37,743 38,184 37,743 38,184
Development Levies (note 1z) 2,516 3,118 2,516 3,118
Joint Venture Provisions 1,594 1,238 1,594 1,238
Total 41,853 42,540 41,853 42,540
Long service leave liabilities have been established by actuarial assessment.
The assessment of the non-current portion of the liability is at net present
value allowing for a salary inflation rate of 3.5% and a investment
earning rate of 6%.
32. LEASE LIABILITIES
Finance Lease Liability ( current ) - 53 - 53
- 53 - 53
Lease Commitments on Capitalised Finance Lease are:
Not later than one year - 140 - 140
Later than one year & not later than two years - - - -
Later than two years & not later five years - - - -
Later than five years - - - -
Lease Commitments
Less:
- 140 - 140
Future Finance Charges - 1 - 1
Future Contingency Rentals - 86 - 86
- 87 - 87
Lease Liability - 53 - 53
Representing Lease Liabilities:
Current - 53 - 53
- 53 - 53

33.(I). ASSET REVALUATION RESERVE
THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
CONSOLIDATED S.H.C
June 2000 June 1999 June 2000 June 1999
$000 $000 $000 $000
Current Reserve
Balance brought forward 1,319,542 1318,545 1,319,542 1,318,545
Transfer to Realisation Reserve (82,897) (89,953) (82,897) (89,953)
Revaluations during the year 113,721 90,950 113,721 90,950
1,350,366 1,319,542 1,350,366 1,319,542
Revaluations recognised during the year were in respect of:
Rental Properties - current 107,256 83,290 107,256 83,290
Other Properties - current 3,464 2,544 3,464 2,544
Land 3,001 5,116 3,001 5,116
Transferred to Realisation Reserve
113,721 90,950 113,721 90,950
Value of Rental Properties Realised - Sold (52,807) (44,199) (52,807) (44,199)
Value of Rental Properties Realised - Demolished (28,763) (42,516) (28,763) (42,516)
Value of Other Properties Realised - Sold (1,327) (3,238) (1,327) (3,238)
(82,897) (89,953) (82,897) (89,953)
33.(ii). ASSET REALISATION RESERVE
Realisation Reserve
Balance brought forward 277,650 187,697 277,650 187,697
Realisation during the year 82,897 89,953 82,897 89,953
360,547 277,650 360,547 277,650
Rental Properties - Sold 52,807 44,199 52,807 44,199
Rental Properties - Demolished 28,763 42,516 28,763 42,516
Other Properties - Sold 1,327 3,238 1,327 3,238
82,897 89,953 82,897 89,953
34. INTEREST ASSISTANCE
LOWSTART RESERVE
Balance brought forward 4,569 4,843 - -
Transfer (to)/ from Operating Statement (213) (274) - -
4,356 4,569 - -
149

THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
Notes to and forming part of the accounts
35. UNAPPROPRIATED PROFITS
150
CONSOLIDATED S.H.C
June 2000 June 1999 June 2000 June 1999
$000 $000 $000 $000
Unappropriated Profits 1,176,694 1,170,233 1,095,469 1,103,808
Developers contributions 1,932 2,787 1,932 2,787
State grants for capital purposes 33,099 17,600 33,099 17,600
1,211,725 1,190,620 1,130,500 1,124,195
36. RECONCILIATION OF CASH FLOWS
FROM OPERATIONS WITH SURPLUS
(DEFICIT)
Surplus (Deficit) 20,892 28,817 6,305 18,198
Provision for Depreciation & Amortisation 39,068 36,226 38,834 35,514
Provision for Doubtful Debts 3,732 1,785 2,463 (1,079)
Premiums on Financial Instruments 1,662 1,028 - -
Net Surplus/(Deficit) on Sale of Assets (36,376) (30,796) (38,865) (33,671)
Increase in Accrued Interest 95,997 75,436 90,746 67,769
Decrease in Receivables (55,292) (10,782) (55,292) (10,782)
Increase in Creditors (50,949) 6,941 (43,652) (433)
Increase in Prepayments (33,428) (30,407) (33,815) (32,908)
Decrease in Accrued Income 47,427 17,386 47,427 17,386
Net Cash Flows used in Operating Activities. 32,733 95,634 14,151 59,994
37. PAYMENTS FOR PROPERTY, PLANT
AND EQUIPMENT
Properties 41,293 17,464 41,293 17,464
Offices 41 219 41 219
Computing Facilities & Equipment 5,047 7,182 5,046 7,158
Furniture & Fittings 325 305 325 305
Office Machines & Equipment 188 42 183 30
Work in Progress 115,897 108,419 115,897 108,419
Freehold Land 42,294 39,115 42,294 39,115
Total 205,085 172,746 205,079 172,710
38. RECONCILIATION OF CASH
For the purposes of this statement of cash flows cash includes cash at
bank and in interest bearing deposits with Banks
Cash at the end of the year is shown in the balance sheet as:
Cash at Bank - Operational 42,403 56,816 32,311 51,099
Cash at Bank - Superannuation 20,700 20,700 20,700 20,700
Investments (Unsecured Deposits) 5,023 5,280 - -
Rental Tenants Bonds 5,886 4,733 5,886 4,733
74,012 87,529 58,897 76,532

39. REMUNERATION OF ACCOUNTABLE
AUTHORITY AND SENIOR OFFICERS
THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
S.H.C
June 2000 June 1999
$000 $000
The total fees, salaries and other benefits received or due and receivable
for the financial year, by members of the Accountable Authority, from
the Statutory Authority and the controlled entity. 367 325
The total of fees, salaries and other benefits received or due and
receivable for the financial year, by Senior Officers other than members
of the Accountable Authority, from the Statutory Authority and the
controlled entity. 678 520
The number of members of the Accountable Authority whose total of
fees, salaries and other benefits received or due and receivable for the
financial year, falls within the following bands:
2000 1999
$0 - $10,000 2 1
$10,000 - $20,000 3 3
$20,000 - $30,000 2 2
$60,000 - $70,000 - -
$70,000 - $80,000 1 1
$140,000 - $150,000 - 1
$170,000 - $180,000 1 -
9 8
The number of Senior Officers other than members of the Accountable
Authority, whose total of fees, salaries and other benefits received or
due and receivable for the financial year falls within the following bands:
2000 1999
$90,000 - $100,000 1 3
$100,000 - $110,000 3 1
$110,000 - $120,000 1 -
$130,000 - $140,000 - 1
$140,000 - $150,000 1 -
6 5
151

THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
Notes to and forming part of the accounts
40. RETIREMENT BENEFITS
In respect of members of the Accountable Authority, the following
amounts were paid or became payable for the financial year.
152
CONSOLIDATED S.H.C
June 2000 June 1999 June 2000 June 1999
$000 $000 $000 $000
Contributions to Gold State Superannuation and West State
Superannuation Scheme 31 29
Redundancy payments - -
In respect of Senior Officers other than members of the Accountable
Authority, the following amounts were paid or became payable for the
financial year:
31 29
Contributions to Gold State Superannuation and West State
Superannuation Scheme 43 35
Redundancy payments - -
Numbers of Senior Officers Presently employed who are members of
the Superannuation and Family
Benefits Act Scheme: 2000 1999
Members of the Accountable
Authority - -
Senior Officers other than members
of the Accountable Authority - -
41. REMUNERATION OF AUDITOR
43 35
Fees for the Auditor General (External Audit) 250 263 205 215
250 263 205 215
42. CAPITAL COMMITMENTS
At June 30, 2000 commitments made on behalf of The State
Housing Commission were:
Dwelling Construction & Upgrades 86,678 70,383 86,678 70,383
Land Development and Redevelopment 1,569 1,229 1,569 1,229
Loans to Home Buyers 49,216 108,731 1,716 4,162
Crisis Accommodation Program 1,362 1,100 1,362 1,100
Joint Venture Land Development 4,072 5,220 4,072 5,220
Estates Improvements 1,710 1,850 1,710 1,850
Local Government & Community Housing Programs 3,833 3,292 3,833 3,292
148,440 191,805 100,940 87,236

42. CAPITAL COMMITMENTS CONTINUED
THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
Loans to homebuyers represents loans approved but not yet disbursed pending completion of construction or awaiting settlement.
The decrease in loan commitments from the previous year reflects a decrease of 31% in the Keystart new loans program. While there
is a reduction in total loans, the carryover has decreased substantially because the majority of loans have been for established homes
and not for construction, which has reduced the carryover period, and therefore the carryover value. In addition, pressure was placed
on the building industry to finish off as many homes as possible before July to avoid the GST impact, which contributed to the
reduction in undisbursed loans. Also, approvals have been down in the later part of the year as first homebuyers have been waiting
for the introduction of the First Homeowners Scheme Grant.
The time required to acquire suitable land, obtain planning approvals and to let construction contracts results in the need for carry
over commitments. The increase in dwelling construction represents 1,255 building commencements during the year, an increase of
10.5% from last year, to meet the rental waiting list demand. Of this, 59% was allocated to family rental, 31% to seniors
accommodation and 10% for singles units. In addition, 41 units were commenced in the Aboriginal Housing Urban Program, of
which the majority was focused in the country areas. Also, the development of housing stock for the Community Housing Program
and the Crisis Accommodation Program represents 116 commencements.
The increase in Land Development represents projects in Dianella Heights, Yangebup and Quinns, while Joint Venture projects have
progressed in Ellenbrook and Dalyellup.
43. CONTINGENT LIABILITIES
(a) Keystart Housing Scheme
Under a Support Agreement for the Keystart Housing Scheme, The State Housing Commission has accepted an irrevocable and
continuing obligation to fund the Support Trustee's Account with the amount, if any, necessary at that time for the Support Trustee to
meet its obligation to ensure the Issuer, Keystart Bonds Ltd, has access to sufficient cash to meet the payment obligation then due
and payable. In addition, should the Support Trust cease to exist for any reason The State Housing Commission is to satisfy the
Support Trustee's obligations in full as the principal obligator. There are a variety of protective measures in place including mortgage
security, provision for doubtful debts in the Scheme's Accounts, normal house insurance, mortgage protection insurance and other
strategies which may be adopted to minimise the potential draw against this obligation. In view of the above protective measures it is
difficult to quantify a contingent liability. As at June 30, 2000 a total of $1,500.3 million has been raised for Keystart. These
borrowings comprise of $40.3 million of Keystart bonds, $300 million of commercial paper, $350 million of medium term notes and a
further $810 million through the issue of redeemable preference shares. All of the borrowings are secured by mortgages and the
other assets of the Trust including the Trust's reserves. It should also be acknowledged that The State Housing Commission is the sole
beneficiary of the Keystart Trust and the Support Trust.
(b) Keystart - 1st Home Buyers Provision Account
Under the First Home Buyers Scheme which operated from November 1995 to October 1996, land developers were required to
contribute $500 to the Keystart bad debts provision account for each block of land sold and financed through the scheme. The State
Housing Commission, as a land developer, agreed to make available funds to Keystart on a similar basis. As at June 30, 2000, The
State Housing Commission's contingent liability to the account amounted to $186,500. To date there has not been a call on these
funds.
(c) Loans to Terminating Building Societies
Terminating Building Societies have handled Home Purchase Assistance Account loans made since 1986/87 on a cash agency basis,
passing monies received direct to The State Housing Commission with the The State Housing Commission having responsibility for any
shortfall on realisation of the loan security. The amount of funds outstanding under the loan agreements to June 30, 2000 was
$17,683,000.
153

THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
Notes to and forming part of the accounts
44. LOSSES TO THE STATE HOUSING COMMISSION THROUGH THEFTS,
DEFAULTS OR OTHER CAUSES :
The State Housing Commission , for the year ended June 30, 2000, incurred Cashiers Shortages totalling $361 all of which have
been funded by The State Housing Commission.
There were no reportable thefts in 1999/2000.
Bad Debts written off in the year ended June 30, 2000 totalled $2,351,243.
Loan interest written off on income based housing loans in the year ended June 30, 2000 totalled $328,470. (note 1(u))
Bad Debts recovered totalled $638,546
45. GIFTS OF PUBLIC PROPERTY
In the year ended June 30, 2000 The State Housing Commission did not make any gifts of public property.
154

46. FINANCIAL INSTRUMENTS
THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
46(a) Terms, conditions and accounting policies
The economic entity's accounting policies, including the terms and conditions of each class of financial asset, financial liability and
equity instrument, both recognised and unrecognised at the balance date, are as follows:
Recognised Financial
Instruments
(i) Financial assets
Accounting Policies Terms and Conditions
Cash resources Cash at bank is held at nominal amounts. Cash is held at various banks and is interest
bearing. Interest is accrued when earned.
Cash resources - Superannuation cash resources represent Cash is held by the Commonwealth Bank of
Superannuation funds set aside to fund the superannuation Australia and is interest bearing. Interest is
liability. Cash is held at nominal amounts. accrued when earned.
Cash resources - Restricted Restricted cash resources represent rental Cash is held by the Commonwealth Bank of
tenant bonds and are held at nominal Australia and is interest bearing. Interest
amounts. Joint Venture Cash is held by the earned is set aside for the benefit of tenants.
joint venture managers for their operations.
Receivables - general General receivables are carried at nominal Amounts due are generally on 30 day payment
amounts due less any provision for doubtful terms.
debts. A provision for doubtful debts is
recognised when collection of the full
nominal amount is no longer probable.
Refer note 1(u).
Receivables - land debtors Land Debtors are carried at nominal amounts. Land sales are on 30 day terms once the sale has
Sales and receivables are recognised once the become unconditional.
debtor has obtained financing and the sale
has become unconditional.
Receivables - rent from tenants Tenant and other rent receivables are carried Rent receivables are due weekly in advance.
and other rents at nominal amounts due less any provision
for doubtful debts. A provision for doubtful
debts is recognised as detailed in Note 1(u).
Receivables - rental bonds Rental bond assistance receivables are carried Rental bond assistance receivables represent
assistance at nominal amounts due less any provision advances made to qualifying person for the
for doubtful debts. A provision for doubtful purpose of renting a property external to the
debts is recognised as detailed in Note 1(u). Commission. The advance is repayable in
minimum fortnightly payments of $10 with any
remaining balance being collectible upon the
tenant vacating the premises.
Current investments Current investments are carried at the lower Current investments represent 11am call
of cost and net realisable value. Interest is accounts with an effective interest rate of 5.90%.
recognised as revenue when earned.
Loans - homebuyers Loans are carried at their original amount less Loans and advances are secured by a registered
principal repayments less any provision for mortgage over residential properties within
doubtful debts as per note 1(u). Interest is Western Australia, with a variable interest rate
recognised as revenue when earned. of 8.00%.
155

THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
Notes to and forming part of the accounts
46(a) Terms, conditions and accounting policies continued
Recognised Financial
Instruments
(i) Financial assets continued
Accounting Policies Terms and Conditions
Loans - terminating building Loans are carried at their original amount Loan payments are received monthly in
societies less principal repayments. Interest is accordance with the terms of each loan
recognised as revenue when earned. agreement. Final instalments on loans made
directly to the terminating building societies are
due in 2018. Loans made on a cash agency basis
are received by the Commission based upon the
actual amount paid by the homebuyer to the
terminating building society. Interest rates on all
terminating building society loans are variable.
Details in relation to terminating building societies
loans are outlined in Note 19(c).
Loans - other - commercial Loans are carried at their original amount less Loan repayment dates vary for each loan, being
organisations principal repayments. Interest is recognised due in 2001, 2006, or no set date. Interest rates
as revenue when earned. are based on the 30 day bank bill swap reference
rate less 2%. Interest is due annually in
accordance with the terms of the loan.
Loans - local and statutory Loans are carried at their original amount less Loan repayment dates vary for each loan and are
authorities principal repayments. Interest is recognised due half-yearly, upon maturity of loan, or in
as revenue when earned. accordance with other specific agreements.
Interest rates vary between nil and 8.5%.
Interest is due either quarterly or half-yearly in
accordance with the terms of the loan.
(ii) Financial liabilities
Borrowings - State nominated Borrowings are carried at the original amount Borrowings are repayable on an annual basis
funds less principal repayments. Interest is charged with final instalments being due between
as an expense as it accrues. June 2036 and June 2042. Interest rates are set
at 4.5%.
Borrowings - WATC Borrowings are carried at the original amount Variable rate borrowings are repayable on a
less principal repayments. Interest is charged quarterly basis with the final installment being
as an expense as it accrues. due July 2026. Fixed rate borrowings are subject
to interest payments only with the full loan being
due on maturity. Interest rates are fixed at rates
between 5.33% and 6.44%.
Borrowings - Commonwealth Borrowings are carried at the original amount Borrowings are repayable on an annual basis with
advances less principal repayments. Interest is charged final instalments being due between June 2001
as an expense as it accrues. and June 2041. Interest rates are fixed at rates
between 3% and 6%.
Borrowings - Commercial Paper Borrowings are carried at the original amount The funds owing are secured by a floating charge
less principal repayments. Interest is charged over the assets of the Keystart Housing Scheme
as an expense as it accrues. Trust, with a variable interest rate of 6.37%.
Borrowings - Keystart Bonds Borrowings are carried at the original amount The funds owing are secured by a registered
less principal repayments. Interest is charged mortgage over residential properties within
as an expense as it accrues. Western Australia, with a variable interest rate of
6.66%. Principal repayments on the bonds
mirror the principal repayments made in respect
of the allocated mortgages.
156

46(a) Terms, conditions and accounting policies continued
THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
Recognised Financial
Instruments
Accounting Policies Terms and Conditions
(ii) Financial liabilities continued
Borrowings – Medium Term Borrowings are carried at the original amount The funds owing are secured by a floating charge
Notes less principal repayments. Interest is charged over the assets of the Keystart Housing Scheme
as an expense as it accrues. Trust, with a variable interest rate of 5.61%.
Creditors - general Amounts primarily relate to land sale deposits Land sales generally become unconditional
and are recognised upon receipt of cash. within 30 days of offer.
Deposits are taken to income once the sale has
become unconditional.
Creditors - rental deposits Liabilities are recognised when tenant bonds Tenant bonds are payable upon the tenant
and rental tenants bonds are received or receivable. vacating the premises. The ultimate amount to
be paid is dependent upon the condition of the
property upon the tenant vacating, but is not
more than the carrying amount of the liability.
Creditors - rental properties Liabilities are recognised for amounts to be Liabilities are normally settled on 90 day terms.
water consumption paid in the future for water usage.
(iii) Derivatives
Interest Rate Swaps The entity enters into interest rate swap At balance date, the entity had seventeen
agreements that are used to convert the interest rate swap agreements with the following
variable interest rate of its short-term notional amount, interest rate, and maturity
borrowings to medium-term fixed interest rates. dates.
It is the entity’s policy not to recognise interest 1) $50 million, 5.625%, 25/11/2000
rate swaps in the financial statements. Net 2) $100 million, 5.42%, 13/12/2000
receipts and payments are recognised as an 3) $100 million, 5.67%, 15/01/2001
adjustment to interest expense. 4) $50 million, 5.625%, 16/04/2001
5) $100 million, 5.567%, 17/04/2001
6) $150 million, 5.75%, 16/07/2001
7) $50 million, 5.44%, 16/10/2001
8) $50 million, 5.85%, 15/02/2002
9) $25 million, 5.33%, 15/07/2002
10) $25 million, 5.42%, 15/10/2002
11) $200 million, 5.50%, 15/10/2002
12) $25 million, 5.47%, 15/01/2003
13) $50 million, 5.90%, 15/07/2003
14) $150 million, 6.16%, 15/01/2004
15) $50 million, 6.42%, 15/05/2004
16) $50 million, 6.44%, 15/08/2004
17) $50 million, 6.44%, 15/11/2004
157

THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
Notes to and forming part of the accounts
46(a) Terms, conditions and accounting policies continued
Recognised Financial
Instruments
(iii) Derivatives continued
Accounting Policies Terms and Conditions
Interest Rate Caps The entity enters into interest rate cap At balance date, the entity had fourteen interest
agreements that are used to protect against rate caps with the following notional amount,
increases in interest rates. It is the entity’s cap rate, and maturity dates.
policy not to recognise interest rate caps in 1) $50 million, 6.50%, 23/10/2000
the financial statements. Net receipts are 2) $50 million, 6.50%, 02/11/2001
recognised as an adjustment to interest expense. 3) $25 million, 6.50%, 12/11/2001
Premiums paid for interest rate caps are 4) $25 million, 10.50%, 12/03/2002
amortised over the term of the cap. 5) $25 million, 6.50%, 15/04/2002
6) $50 million, 7.00%, 15/04/2002
7) $50 million, 7.00%, 15/05/2002
8) $50 million, 6.50%, 15/07/2002
9) $50 million, 6.50%, 09/08/2002
10) $25 million, 6.50%, 15/10/2002
11) $25 million, 6.50%, 15/10/2002
12) $100 million, 6.50%, 15/04/2003
13) $50 million, 7.00%, 15/08/2003
14) $25 million, 7.00%, 15/11/2003
Interest Rate Collars The entity enters into interest rate collar At balance date the entity had one interest rate
agreements that are used to protect against collar with the following notional amount, floor
increases in interest rates. It is the entity’s rate, cap rate, and maturity
policy not to recognise interest rate collars in 1) $25 million, 4.50%, 6.00%, 29/01/2001
the financial statements. Net receipts are
recognised as an adjustment to interest
expense. Premiums paid for interest rate
collars are amortised over the term of the
collar.
Interest Rate Floors The entity enters into interest rate floor At balance date the entity had seven interest rate
agreements that are used to reduce premium floors with the following notional amount, floor
costs of other hedging instruments. It is the rate, and maturity
entity’s policy not to recognise interest rate 1) $100 million, 4.85%, 15/01/2001
floors in the financial statements. Net 2) $200 million, 5.00%, 16/01/2001
payments are recognised as an adjustment to 3) $50 million, 5.00%, 12/03/2001
interest expense. Premiums received for 4) $100 million, 4.50%, 15/04/2001
interest rate floors are amortised over the 5) $50 million, 4.50%, 15/10/2001
term of the floor. 6) $50 million, 4.50%, 16/10/2001
7) $100 million, 4.75%, 16/10/2002
158

46(b) Interest Rate Risk
The economic entity’s exposure to interest rate risks and the effective interest rates of financial assets and financial liabilities, both recognised and unrecognised at the balance
date, are as follows:
Fixed Interest Rate Maturing In:
Financial Instruments Floating interest rate 1 Year or Less Over 1 to 5 Years More than 5 Years Non-interest Total Carrying Weighted Average
Bearing Amount as per the effective interest
Statement of rate on interest
Financial Position bearing instruments
June June June June June June June June June June June June June June
2000 1999 2000 1999 2000 1999 2000 1999 2000 1999 2000 1999 2000 1999
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
(i) Financial Assets
Cash resources 42,403 56,816 42,403 56,816 5.34% 5.23%
Cash resources -
Superannuation 20,700 20,700 20,700 20,700 5.34% 5.23%
Cash resources - Restricted 6,513 5,699 6,513 5,699 5.34% 5.23%
Receivables - general 9,692 12,869 9,692 12,869 - -
Receivables - land debtors 2,445 6,613 2,445 6,613 - -
Receivables - rent from
tenants and other 2,850 2,955 2,850 2,955 - -
Receivables - rental bonds
assistance 3,660 3,661 3,660 3,661 - -
Investments - current 5,023 5,280 5,023 5,280 5.90% 4.7%
Investments - loans to
homebuyers 1,762,965 1,670,324 477 532 1,910 2,126 1,432 2,126 20,991 12,749 1,787,775 1,687,857 8.00% 7.00%
Investments - loans to
terminating building societies 21,345 29,256 2,389 1,854 23,734 31,110 6.81% 5.85%
Investments - loans to
commercial organisations 677 667 256 230 933 897 2% 1%
Investments - loans to local
and statutory parties 218 315 404 464 622 779 7.8% 7.5%
THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
Total financial assets 1,859,626 1,788,742 477 532 2,128 2,441 1,432 2,126 42,687 41,395 1,906,350 1,835,236
- not applicable for non-interest bearing financial instruments
159

Notes to and forming part of the accounts
46(b) Interest Rate Risk continued
160
Fixed Interest Rate Maturing In:
Financial Instruments Floating interest rate 1 Year or Less Over 1 to 5 Years More than 5 Years Non-interest Total Carrying Weighted Average
Bearing Amount as per the effective interest
Statement of rate on interest
Financial Position bearing instruments
June June June June June June June June June June June June June June
2000 1999 2000 1999 2000 1999 2000 1999 2000 1999 2000 1999 2000 1999
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
(ii) Financial Liabilities
Borrowings - Consolidated funds 65,590 932 4,666 70,044 141,232 6.93%
Borrowings - State nominated 2,955 2,828 13,212 13,318 286,817 289,666 302,984 305,812 4.5% 4.5%
Borrowings - WATC 292,239 157,807 235,000 340,000 525,000 125,000 1,052,239 622,807 4.34% 4.5%
Borrowings - Commonwealth
advances 8,232 7,255 32,911 31,881 256,581 265,846 297,724 304,982 4.4% 4.35%
Borrowings - Commercial Paper 300,000 405,000 300,000 405,000 6.37% 4.90%
Borrowings - Keystart Bonds 1,733 22,237 25,615 70,770 12,956 32,712 40,304 125,719 6.66% 5.81%
Borrowings – Medium Term Notes 350,000 350,000 350,000 350,000 5.61% 5.61%
Finance lease liability 53 53 15.5%
Creditors - general 11,981 12,178 11,981 12,178 - -
Creditors - rental deposits and
tenant bonds 5,886 4,732 5,886 4,732 5.34% 5.23%
Creditors - rental property
water consumption 1,553 1,665 1,553 1,665 - -
Interest Rate Swaps 400,000 25,000 875,000 525,000 *** *** - -
Interest Rate Caps 650,000 550,000 *** *** - -
Interest Rate Collars 25,000 375,000 *** *** - -
Interest Rate Floors 650,000 *** *** - -
THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
Total Financial Liabilities 1,924,858 1,580,366 671,802 446,838 1,809,079 1,082,577 543,398 625,556 13,534 13,843 2,362,671 2,274,180
*** not applicable since financial instruments are not recognised in the financial statements.

46(c) Net Fair Values
THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
The aggregate net fair values of financial assets and financial liabilities, both recognised and unrecognised represent estimates at a
point in time. These estimates are subjective in nature and while judgement is used, there are inherent weaknesses in any estimation
technique. Many of the estimates involve uncertainties and matters of significant judgement. Changes in underlying assumptions
could significantly affect these estimates. While the estimated net fair value amounts are designed to represent estimates at which
these instruments could be exchanged in a current transaction between willing parties, many of the economic entity's financial
instruments lack an available trading market as characterised by willing parties engaging in an exchange transaction. Furthermore,
market prices or rates of discount are not available for many of the financial instruments valued and surrogates have been used which
may not reflect the price that would apply in an actual sale. Lastly, it is The State Housing Commission's intent to hold most of its
financial instruments to maturity and therefore it is not probable that the net fair values shown will be realised in a current
transaction. It is important that these uncertainties be considered when using the estimated net fair value disclosures and to realise
that because of these uncertainties, the aggregate net fair value amount should in no way be construed as a representative of the
underlying value of the economic entity.
The following table provides details of both carrying value and net fair value of financial instruments. The amounts disclosed do not
reflect the value of assets and liabilities that are not considered financial instruments.
Total carrying amount as Aggregate
per the Statement of
Financial Position
Net Fair Value
June 2000 June 1999 June 2000 June 1999
$000 $000 $000 $000
Financial Assets
Cash at bank 69,616 83,215 69,616 83,215
Receivables - general, land debtors, rents, and bonds assistance 18,647 26,098 18,647 26,098
Current investments 5,023 5,280 5,023 5,280
Loans - homebuyers 1,787,775 1,687,857 1,787,775 1,687,857
Loans - terminating building societies 23,734 31,110 23,734 31,110
Loans - other commercial organisations 933 897 933 897
Loans - local and statutory parties 622 779 622 779
Total financial assets 1,906,350 1,835,236 1,906,350 1,835,236
Financial Liabilities
Borrowings - Consolidated Fund - 141,232 - 141,232
Borrowings - State nominated 302,984 305,812 242,825 217,818
Borrowings - WATC 1,052,239 622,807 1,065,222 639,415
Borrowings - Commonwealth advances 297,724 304,982 248,148 248,875
Borrowings - Commercial Paper 300,000 405,000 300,000 405,000
Borrowings - Keystart Bonds 40,304 125,719 40,304 125,719
Borrowings – Medium Term Notes
Creditors - general, rental deposits, tenant bonds,
350,000 350,000 350,000 350,000
rental property water consumption 19,420 18,575 19,420 18,575
Finance lease liability - 53 - 53
Interest rate swaps *** *** (5,457) (3,220)
Interest rate caps *** *** 2,619 3,554
Interest rate collars *** *** 30 2,886
Interest rate floors *** *** (16)
Total financial liabilities 2,362,671 2,274,180 2,263,095 2,149,907
*** not applicable since financial instruments are not recognised in the financial statements.
The following methods and assumptions are used to determine the net fair values of financial assets liabilities.
161

THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
Notes to and forming part of the accounts
46(c) Net Fair Values continued
Recognised Financial Instruments
Cash at bank, superannuation The carrying amount approximates fair value.
cash and restricted cash:
Receivables and creditors: The carrying amount approximates fair value.
Investments - current: The carrying amount approximates fair value because of their short term to maturity.
Loans to homebuyers: The carrying amount approximates fair value.
Loans to terminating building The carrying amount approximates fair value.
societies:
Loans to commercial organisations: The carrying amount approximates fair value.
Loans to local and statutory parties: The carrying amount approximates fair value.
Borrowings - Consolidated funds: The carrying amount approximates fair value.
Borrowings - State nominated: The net fair value has been calculated using a discounted cashflow model based on a
yield curve appropriate to the remaining term to maturity of the instruments.
Borrowings - WATC: The net fair value has been calculated using a discounted cashflow model based on a
yield curve appropriate to the remaining term to maturity of the instruments.
Borrowings - Commonwealth The net fair value has been calculated using a discounted cashflow model based on a
advances: yield curve appropriate to the remaining term to maturity of the instruments.
Borrowings - Commercial Paper: The carrying amount approximates fair value because of their short term to maturity.
Borrowings - Keystart Bonds/ The fair values of long term borrowings are estimated using
Medium Term Notes: discounted cashflow analysis, based on current incremental borrowing rates for similar
types of lending arrangements.
Finance lease liability: The carrying amount approximates fair value because of the short term to maturity.
Unrecognised Financial Instruments
Interest rate swap agreements: The fair values of interest rate swap contracts is determined as the difference in present
value of the future cashflows.
Interest rate cap agreements: The fair values of interest rate cap agreements are determined by reference to similar
types of hedging arrangements priced at balance date.
Interest rate collar agreements: The fair values of interest rate collar agreements are determined by reference to similar
types of hedging arrangements priced at balance date.
Interest rate floor agreements: The fair values of interest rate floor agreements are determined by reference to similar
types of hedging arrangements priced at balance date.
46(d) Credit risk exposures
The State Housing Commission’s maximum exposures to credit risk at balance date in relation to each class of recognised financial
asset is the carrying amount of those assets as indicated in the statement of financial position.
In relation to derivative financial instruments, whether recognised or unrecognised, credit risk arises from the potential failure of
counterparties to meet their obligations under the contract or arrangement. The Commission’s maximum credit risk exposure in
relation to these is as follows:
(i) interest rate swap contracts - which is limited to the net fair value of the swap agreement at balance date, being $5,457,500,
(ii) interest rate caps - which is limited to the net fair value of the cap agreement at balance date, being $2,619,500,
(iii) interest rate collars - which is limited to the net fair value of the cap element of the collar agreement at balance date, being
$30,000.
162

46(d) Credit risk exposures continued
THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
Concentration of Credit Risk
The State Housing Commission's credit risk is spread over a significant number of parties and is concentrated only to the extent of
geographic location, being that of urban and rural locations within Western Australia. The State Housing Commission is therefore not
materially exposed to any particular individual party or group of parties.
The entity minimises concentrations of credit risk in relation to loans and advances by undertaking transactions with a number of
borrowers, within specified maximum limits based upon the assessment of each borrower’s ability to service a mortgage. The entity
concentrates 100% of its lending to the purchase of residential real estate within Western Australia. Security is provided to the entity
through a mortgage over the security property.
47(e) Hedging Instruments
General Hedges
The entity has entered into interest rate swap, cap and collar agreements as the hedging component of its Interest Rate Risk
Management policy.
163

THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
Notes to and forming part of the accounts
EXPLANATORY STATEMENT OF FINANCIAL RESULTS
Section 42 of the Financial Administration and Audit Act 1985 requires The State Housing Commission to prepare annual budget
estimates. Treasurer's Instruction 945 requires an explanation of significant variations between these estimates and actual results.
Significant variations are considered to be those greater/less than $5,000,000 or 10% greater/less than the budgeted amount.
COMPARISONS OF ESTIMATES 1999/2000 AND ACTUAL OPERATING RESULTS FOR 1999/2000
Budget Actual Variation
$000 $000 $000
1 Operational Revenues have varied by the following:
* Profit from the sale of non current assets has come in above budget 27,748 38,865 11,117
predominantly as a result of better than expected sales of rental properties.
Original budget expectations were kept at a conservative level to reflect
an expected slow down in the property market as a result of the anticipated
GST as well as the introduction of the First Homeowners Rebate. However,
results have been higher than projected as the market for established housing
did not slow down as much as expected and remained relatively buoyant
throughout the year. Better than expected results have been achieved in all
rental sales programs, in particular the New Living program due to the success
in areas such as New North and Armadale.
In addition, net profit from the sale of land also contributed to the overall
outcome as a result of heightened market demand earlier in the year in
anticipation of the increased cost of housing construction after the introduction
of the GST.
* Operating Grants and subsidies original budget reflected the proposed funding 105,166 117,035 11,869
for the first full year of the Aboriginal Community Strategic Investment
Program(ACSIP) and the Remote Area Essential Services Program (RAESP),
which were transferred from the Aboriginal Affairs Department to the Ministry.
However, when the original budget was developed, Treasury had not advised
the Ministry of the actual funding to be allocated and a revision was made to
the budget as part of the review process when the actual figures became
available.
* The increase in other income is predominantly due to a discount received on 2,125 17,492 15,367
borrowings, as a result of the Ministry refinancing General Loan Fund
borrowings through The Western Australian Treasury Corporation at current
market rates. This initiative was developed subsequent to the formulation of
the original budget.
* The increase in interest revenue is as a result of additional funds which have 41,650 63,533 21,883
been borrowed from WATC for Keystart, resulting in higher than expected
cash balances. The funds are passed on to Keystart by the Ministry and impact
on interest revenue due to Keystart’s repayments to the Ministry, and interest
expense due to the Ministry’s repayments to WATC. There is no effect on the
overall bottom line for the Ministry because the expense is fully offset against
interest revenue from the investment. The funds have been applied to meet
Keystart’s objective to assist people into home ownership and the additional
borrowings reflect the continued demand for home loans during the financial
year.
164

THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
COMPARISONS OF ESTIMATES 1999/2000 AND ACTUAL OPERATING RESULTS FOR 1999/2000 continued
2 Operational Expenditures have varied by the following:
Budget Actual Variation
$000 $000 $000
* Depreciation and Amortisation has been on budget through out the year, 34,778 38,834 4,056
however in June results came in above budget, particularly in the area of
computing development as many development projects were undertaken
during 1999/00 to replace existing operating systems and as these projects
are now complete, the assets which have been replaced have been retired.
* Increase in Interest Expense see explanation for Interest Revenue. 68,252 90,746 22,494
* Management Expenses are over budget predominantly as a result of the 45,413 52,865 7,452
maintenance of computer software, ensuring compliance with year 2000,
provisions for the GST and the establishment of the Ministry of Housing.
Also, salary and salary oncosts have come in above budget as a result of a 3%
pay increase within the parameters of the workplace agreement and an
increase in projections for superannuation provisioning based on revised
actuarial factors such as life expectancy data.
* Rental expenses are over budget as a result of a number of factors: 100,605 125,755 25,150
* Renovations and improvements are above budget due to the expediting
of the New Living redevelopment program.
* Regional improvements are above budget as a result of a surge in the
last month of the financial year by contractors to clear outstanding
accounts prior to the introduction of the GST.
* Loss on Demolitions for the New Living projects increased. This is difficult
to accurately estimate at the beginning of the projects and revisions are
made to the budget during the year based on the information available.
* Rental property expenses are above budget as a result of an end of
financial year adjustment for the New Living program, where infrastructure
expenditure (a capital account) is transferred to the cost of properties
refurbished.
* The decrease in sundry expense is mainly due to a reduction in doubtful debts 10,970 9,490 (1,480)
from improved debt management strategies which resulted in less debts being
written off during the year.
165

THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
Notes to and forming part of the accounts
EXPLANATORY STATEMENT OF FINANCIAL RESULTS
Details and reasons for significant variations between actual operating results for 1999/2000 and the preceding year are detailed
below. Significant variations are considered to be those greater/less than $5,000,000 or 10% greater/less than the actual amount for
the preceding year.
COMPARISONS OF ACTUAL OPERATING RESULTS FOR 1999/2000 WITH THOSE OF THE PRECEDING YEAR
1. Operational Revenues have varied by the following:
Actual Actual Variation
June 2000 June 1999
$000 $000 $000
* Interest revenue increased by $23.687 million due to an increase of 63,533 39,846 23,687
interest earned on investments in Keystart preferential shares of $23.315 million.
* Net profit on the sale of assets increased by $ 5.194 million. Predominately due 38,865 33,671 5,194
to an increase in the net profit on the sale of rental properties of $8.658 million
arising from an increased sales program. The profit on the sale of land has
reduced by $4.340 million due to reduced market demand.
* Developers contributions increased by $0.471 million due to contributions by 1,932 1,461 471
developers towards Land Joint Venture operations.
* Other operating income has increased by $16.238 million mainly due to a 17,492 1,254 16,238
discount of borrowings revenue realised with the re-financing of Consolidated
Fund Debt.
2. Operational Expenditures have varied by the following:
166
* Community Support Programs have increased by $6.574 million predominately 26,558 19,984 6,574
due to an increase in expenditure relating to Aboriginal infrastructure and health
programs.
* Interest expense has increased by $22.977 million predominately due to 90,746 67,769 22,977
increased borrowings from the Western Australian Treasury Corporation for
Keystart funding.
* Management Expenses have increased by $8.474 million due to the following: 52,865 44,391 8,474
An increase of $2.446 million for the maintenance of computing software and
$3.393 million for Other Costs and Expenses to ensure compliance with Year
2000, the provisions of the Goods and Services Tax and the establishment of the
Ministry of Housing.
There has been an increase in Salaries and Wages including on costs of $1.723
million due to an increase in gross salaries due to a 3% pay increase and an
increase in leave entitlements.
A decrease in administration recouped of $1.768 million was reflective of a
reduced construction program and recoveries from other Authorities.

THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
COMPARISONS OF ACTUAL OPERATING RESULTS FOR 1999/2000 WITH THOSE OF THE PRECEDING YEAR continued
2 Operational Expenditures have varied by the following (continued):
Actual Actual Variation
June 2000 June 1999
$000 $000 $000
* Rental expenses increased by $19.022 million this is due to: 125,755 106,733 19,022
An increase in maintenance expense of $1.804 million.
An overall increase in Shire and Water Rates of $0.866 million.
A decrease in the loss on demolition of $5.618 million due to lower
improvement values associated with New Living programs. An increase
of improvements expenses of $22.066 million as a result of the expansion
of the New Living Projects.
* Sundry Expenses have increased by $3.668 million predominately due to a 9,490 5,822 3,668
once off decrease in the previous year relating to a major initiative to assist
low income home buyers.
3 Grants and Subsidies from Government
* State Grants increased due to grants received for State Aboriginal 15,499 2,756 12,743
programs, targeting health and infrastructure initiatives in remote
Aboriginal Villages.
* Resources received free of charge is a once only contribution of assets - 7,749 (7,749)
from the Disabilities Services Commission to the value of $7.749 million
received in the previous year.
167

THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
Consolidated Statement of Financial Position
Estimates for 2000/2001
CONSOLIDATED S.H.C
CURRENT ASSETS
Cash Resources 49,985,758 43,791,758
Restricted Cash Resources 4,732,781 4,732,781
Accounts Receivable 14,673,711 14,463,711
Inventories 60,280,195 60,280,195
Other 5,292,000
TOTAL CURRENT ASSETS 134,964,445 123,268,445
NON CURRENT ASSETS
Investments and Loans 2,186,452,631 832,115,631
Rental Properties 2,867,074,153 2,867,074,153
Community Housing 100,932,752 100,932,752
Shared Equity Properties 106,849,033 106,849,033
Other Properties 24,730,258 24,730,258
Plant and Equipment 6,557,967 6,463,967
Work in Progress 74,192,790 74,192,790
Land Freehold and Joint Venture 268,756,775 268,756,775
Deferred Assets 69,029,971 66,967,971
TOTAL NON CURRENT ASSETS 5,704,576,328 4,348,083,328
TOTAL ASSETS 5,839,540,773 4,471,351,773
CURRENT LIABILITIES
Borrowings and Creditors 886,688,156 18,188,156
Employee Entitlements 7,808,387 7,808,387
Other Current Liabilities 5,885,757 5,885,757
TOTAL CURRENT LIABILITIES 900,382,300 31,882,300
NON CURRENT LIABILITIES
Borrowings 1,851,852,878 1,453,784,878
Employee Entitlements 34,358,000 34,358,000
TOTAL NON CURRENT LIABILITIES 1,886,210,878 1,488,142,878
TOTAL LIABILITIES 2,786,593,178 1,520,025,178
NET ASSETS 3,052,947,595 2,951,326,595
EQUITY
Asset Revaluation Reserve 1,799,303,675 1,799,303,675
Retained Earnings 1,253,643,920 1,152,022,920
TOTAL EQUITY 3,052,947,595 2,951,326,595
168

THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
Consolidated Operating Statement Estimates
for 2000/ 2001
Rental Home Purchase Land Operations Corporate Segment Entity Totals
Operations Assistance Overheads Eliminations
Income
Net Rental Revenue 115,093,000 - 454,000 - 115,547,000
Sales Non Current Assets 8,883,722 315,000 36,425,815 - (3,275,200) 42,349,337
Other Income 2,268,655 180,000 - 373,000 2,821,655
Total Interest Revenue 768,408 145,183,592 - - 145,952,000
127,013,785 145,678,592 36,879,815 373,000 (3,275,200) 306,669,992
Expenditure
Rental Operating Expense 109,381,703 104,000 368,000 - 109,853,703
Management Expense 28,125,439 3,026,233 3,186,390 14,386,138 48,724,200
Net Interest Expense 21,200,150 103,324,850 13,492,000 - 138,017,000
Community and Villages Support Prog 25,189,000 800,000 - - 25,989,000
Sundry Expense 3,955,950 19,540,710 149,340 3,619,800 27,265,800
Deprec and Amortisation 32,793,374 2,424,111 446,645 1,515,870 37,180,000
220,645,616 129,219,904 17,642,375 19,521,808 - 387,029,703
Gross Profit/( Loss) (93,631,831) 16,458,688 19,237,440 (19,148,808) (3,275,200) (80,359,711)
Support Staff Allocations 10,396,889 1,742,598 2,063,251 (14,202,738) -
Support Service Other Costs 3,512,088 572,238 678,344 (4,762,670) -
Abnormal Items - - - - -
Net Profit/( Loss) (107,540,808) 14,143,852 16,495,845 (183,400) (3,275,200) (80,359,711)
Commonwealth Grants 94,463,978 13,938,022 - - 108,402,000
State Grants 13,830,000 - - - 13,830,000
Operating Surplus/( Deficit) Prior to Transfers 753,170 28,081,874 16,495,845 (183,400) (3,275,200) 41,872,289
Segment Transfers
CSHA Matching 27,492,000 - (27,492,000) - -
Right to Buy 2,902,000 - (2,902,000) - -
30,394,000 - (30,394,000) - - -
Operating Surplus/( Deficit) 31,147,170 28,081,874 (13,898,155) (183,400) (3,275,200) 41,872,289
169

Statistical Summary
170
THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
1999/00 1998/99 1997/98 1996/97 1995/96
RENTAL WAITING LIST BY CUSTOMER
Family 7,263 8,255 7,091 6,975 6,380
Senior Single 1,547 1,518 1,466 1,552 1,697
Senior Couple 350 500 630 676 740
1 Bedroom Applicants 3,719 4,053 3,438 3,311 2,982
TOTAL 12,879 14,326 12,625 12,514 11,799
1999/00 1998/99 1997/98 1996/97 1995/96
RENTAL WAITING LIST BY BEDROOM NUMBER
1 Bedroom family - - 22 19 78
2 Bedroom family 3,806 4,156 3,514 3,502 2,985
3 Bedroom family 2,897 3,372 2,963 2,862 2,755
4 Bedroom family 511 581 535 528 502
5 + Bedroom family 43 63 57 64 60
Senior Single (bsr & 1 br) 1,547 1,518 1,466 1,552 1,697
Senior Couple (1br & 2br) 350 500 630 676 740
1 Bedroom Applicants (bsr & 1 br) 3,719 4,053 3,438 3,311 2,982
Other 6 83 - - -
TOTAL 12,879 14,326 12,625 12,514 11,799
1999/00 1998/99 1997/98 1996/97 1995/96
NEW TENANCIES BY CUSTOMER TYPE
Family 2,499 3,247 3,344 3,544 4,132
Senior Single 684 583 673 729 678
Senior Couple 201 200 274 252 379
1 Bedroom Tenant 1,088 989 1,328 1,343 1,370
TOTAL 4,472 5,019 5,619 5,868 6,559
1999/00 1998/99 1997/98 1996/97 1995/96
RENTS
Rebated 27,752 28,048 29,384 30,191 30,730
Full Rent 5,141 5,185 4,388 3,997 3,705
TOTAL 32,893 33,233 33,772 34,188 34,435

THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES
1999/00 1998/99 1997/98 1996/97 1995/96
RENT PAID AS % OF RENT PAYABLE
(SUBSIDISED TENANCIES}
1 Bedroom Tenant 47.38% 49.52% 45.53% 43.87% 42.65%
Single + 1 child 47.68% 47.08% 44.44% 42.18 % 40.75%
Single + 2 children 47.58% 46.60% 45.15% 42.66% 40.92%
Single + 3 children 47.81% 47.24% 44.72% 43.73% 42.04%
Single + 4(+) children 46.69% 46.28% 45.08% 44.22% 42.04%
Couple 65.37% 63.88% 61.48% 59.47% 58.00%
Couple + 1 child 62.87% 63.43% 61.81% 60.46% 58.10%
Couple + 2 children 63.68% 65.13% 63.58% 62.02% 59.93%
Couple + 3 children 64.01% 65.86% 64.33% 62.16% 61.40%
Couple + 4(+} children 62.61% 64.84% 65.00% 62.18% 60.17%
TOTAL SUBSIDISED TENANCIES 51.08% 50.71% 49.62% 48.13% 46.91%
1999/00 1998/99 1997/98 1996/97 1995/96
TENANT INCOME SOURCES
Age Pension 25.5% 26.05% 24.87% 24.41 % 23.71%
Disability Support Pension 17.5% 16.64% 16.10% 15.58% 15.18%
Parenting Payment Single 16.8% 17.78% 19.84% 20.38% 20.43%
Newstart Allowance 8.2% 9.42% 11.62% 11.35% 11.76%
Veteran Services 2.7% 3.06% 3.35% 3.43% 3.35%
Low Wage Income 5.7% 7.12% 6.06% 6.63 % 7.06%
Other 8.0% 4.33% 5.17% 6.53% 7.75%
Full Rent 15.6% 15.60% 12.99% 11.69% 10.76%
1999/00 1998/99 1997/98 1996/97 1995/96
RENTAL ARREARS
Average Arrears per Account $16.29 $21.17 $17.81 $12.49 $14.72
%age Accounts in Arrears 11.32% 14.80% 11.11 % 9.90% 11.48%
Target $14.00 $14.00 $14.00 $14.00 $15.00
1999/00 1998/99 1997/98 1996/97 1995/96
RENTAL STOCK BY BEDROOM NUMBER
Bedsitter 551 639 815 914 971
1 Bedroom 6,974 6,861 6,668 6,489 6,368
2 Bedroom 9,533 9,546 9,691 9,678 9,693
3 Bedroom 15,416 15,839 16,254 16,730 17,191
4 Bedroom 2,387 2,266 2,198 2,160 2,132
5+ Bedroom 326 306 268 261 247
TOTAL 35,187 35,457 35,894 36,232 36,602
1999/00 1998/99 1997/98 1996/97 1995/96
RENTAL STOCK BY BY DWELLING TYPE
House 13,828 14,137 14,477 15,041 15,494
Duplex 4,552 4,549 4,522 4,558 4,600
Medium-High Density (2) 16,345 16,353 16,432 16,191 16,089
Other (3) 462 418 463 442 419
TOTAL 35,187 35,457 35,894 36,232 36,602
171

Statistical Summary
1999/00 1998/99 1997/98 1996/97 1995/96
BUILDING COMMENCEMENTS {4)
BY CUSTOMER TYPE
Family 773 639 555 452 541
1 - 2 Bedroom 132 104 556 232 344
Seniors 391 447 148 72 40
TOTAL 1,296 1,190 1,259 756 925
1999/00 1998/99 1997/98 1996/97 1995/96
LAND PRODUCTION
Lots Produced (5) 1,483 1,337 994 1,246 1,741
NOTES
(1) Percentages are rounded
(2) Medium-High Density: Townhouses, Flats and Apartments
(3) Other: Cluster House and Non Standard
(4) Commencements: Letter of Acceptance, Excludes Purchase Housing (homes built for sale). Includes Spot Purchase (acquisitions)
and Joint Ventures
(5) Lots produced include Land Development and Redevelopment, estates improvement and joint ventures.
172
THE STATE HOUSING COMMISSION AND CONTROLLED ENTITIES