ANNUAL REPORT 2023
Tasracing Pty Ltd ABN 62 269 303 946 ACN 137 188 286 6 Goodwood Road, Glenorchy TAS 7010 PO Box 730, Glenorchy TAS 7010 Telephone: +61 3 6212 9333 Fax: +61 3 6272 5191 Email: admin@tasracing.com.au Web: tasracingcorporate.com.au & tasracing.com.au
Contents From the Chairperson
06
From the Chief Executive Officer
10
Statement of Corporate Intent
22
Company Overview
24
Board of Directors
27
Organisational Structure
31
Corporate Plan
35
Thoroughbred Code Report
38
Harness Code Report
42
Greyhound Code Report
46
Corporate Governance
50
Annual Financial Report
54
Auditor’s Independence Declaration
92
Independent Auditor’s Report
93
Tasracing Pty Ltd ABN 62 269 303 946 ACN 137 188 286 6 Goodwood Road, Glenorchy TAS 7010 PO Box 730, Glenorchy TAS 7010 Telephone: +61 3 6212 9333
Fax: +61 3 6272 5191
Email: admin@tasracing.com.au Web: tasracingcorporate.com.au & tasracing.com.au
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5 YEAR GROWTH 1 JULY 2018 TO 30 JUNE 2023
$231.8 M / 40% Wagering turnover
$10 M / 75% Race Field Fee revenue
$7.1M
Point of consumption tax funding
$12.5 M / 53% Code funding
$10 M / 48% Stakes paid
$1.1 M / 168%
Breeding bonuses paid
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FROM THE CHAIRPERSON Tasracing’s five-year Corporate Plan reviewed and released in March 2023 introduces, on page one, the Tasmanian racing industry as a critical part of the social and economic landscape of the state with a history nearly-200-yearsold. It goes on to note that the growth and ongoing development of the industry is important to Tasmania. This has always been a critical consideration for the Tasracing Board, and this reporting period was no different. The past five years of operations have seen substantial improvements across all aspects of the Tasmanian racing industry, including Race Field Fee revenue, code funding, stakes money and breeding incentives (see page 4 of this annual report for further information). In addition, investment in infrastructure over the past five years totalled $28.5 million with no additional debt, culminating in the redevelopment of the Elwick thoroughbred track. During the last months of the 2022/23 financial year the track raced evenly and fairly with winners coming from both on pace and back in the field – an outcome with which Tasracing was very pleased. As a result of the track’s performance improvements during the 2022/23 reporting period, race meeting numbers in Hobart will increase from 21 to 24 in 2023/24. This is an excellent result of which the Tracks and Racing Facilities Manager, Bryan Dunn, (and formerly Ricky Aitken) and his team should be justifiably proud. In August 2022 Tasracing announced that its preferred location for new harness and greyhound tracks on the north west coast was to be on 27 hectares of private land opposite the Devonport Airport. Tasracing acquired the land subject to a Subdivision and a Development Application (DA) being approved. Since then, the company has lodged a DA and Subdivision application with the Latrobe Council and is actively working
with it to advance the development through the approvals process and to commence construction as soon as possible. Importantly much of the original work for the Palmers Road site development (which was ruled out when a Natural Values Assessment identified a critically endangered Black Gum forest and woodland community and the presence of burrowing crayfish) could be applied to the new site near the airport – so it was not a matter of starting again, though some adjustments to the concept design and masterplan were required. Tasracing has consulted extensively with north west coastbased greyhound and harness racing industry participants about its plans and will continue to do so in the coming financial year. The Ladbrokes Tasmanian Summer of Racing Festival, that features all three codes of racing, was again an extremely successful event for Tasracing and the racing industry. It was the third time that the festival was run in this format. Summer racing is extremely important to the Tasmanian racing industry, combining Tasmania’s most popular race days across all three codes. While we do place significant emphasis on broadcasting racing to interstate markets, support for the industry in Tasmania generated through crowds at race meetings is important. The festival provides us with an opportunity to showcase just how good our racing product can be. Ladbrokes has a number of long-term partnerships in Australian racing. Its role as a key partner and key contributor to Tasmanian racing cannot be underestimated. On behalf of the Board, Tasracing and the Tasmanian racing industry, I would like to thank Ladbrokes for its ongoing and very generous support. Beyond this, Ladbrokes’ extensive customer base allows Tasracing to promote Tasmanian racing to a national market.
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Tasracing’s continued strong financial performance – on top of the ongoing popularity of racing – allowed the company to increase stakes to nearly $4.0 million across the three codes of racing during the reporting period.
During the reporting period the Tasmanian Government released its detailed response to the Monteith Review, which recommended changes to the Racing Regulation Act 2004.
Highlights of the increased allocation included base stakes increases for thoroughbred and harness races, additional stakes for Tasbred greyhound races, increases for the Ladbrokes Hobart and Launceston Cups for throughbreds, increases to the Ladbrokes Hobart Thousand and Launceston Cup for greyhounds and an increase to the Ladbrokes Tasmania Cup for harness horses.
The recommendations included:
The Tasmanian racing industry is partly funded under a 20-year funding deed established in 2009, prior to the sale of the government-owned TOTE Tasmania to TattsBet in 2011. Until 2009, the racing industry was self-funded and delivered a dividend to the government of the day. This deed is set to expire in 2029. With this in mind, the Board has established a subcommittee to develop a submission for the Tasmanian Government to consider a new funding deed, and confirmation of Point of Consumption Tax arrangements, well before we reach the 2029 expiration date. This work is critical to provide participants with the confidence to continue investing in the industry. Subject to this work being completed, Tasracing will engage with its stakeholders to provide updates when relevant.
•
Creating a Tasmanian Racing Integrity Commissioner (TasRIC) with powers to set integrity and animal welfare standards and that must include staff with experience in animal welfare policy and regulation.
•
Enhancing integrity governance within Tasracing to allow it to become operationally responsible for all three codes of racing (including pre-race day and race day management, stewards and daily animal welfare).
•
Providing an advisory role for the RSPCA in animal welfare and retaining the power for independent investigation of animal welfare matters.
Implementation of these reforms will require new legislation which is currently being drafted. Under these changes – which Tasracing endorses – it is expected that all stewards will report to a Director of Integrity who will in turn report to a separate Tasracing Board integrity subcommittee constituted by Tasracing Board members and independent members. The Director of Integrity will also have specific lines of reporting to a new Tasracing Integrity Commissioner.
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Tasracing appointed Steve Old and Suzie Jacobson to its Board of Directors at its annual general meeting in December 2022. Both Mr Old and Ms Jacobson have brought extensive and relevant experience to Board deliberations.
Tasracing farewelled retiring thoroughbred director Robyn Whishaw and commercial director Helen Galloway. Both are highly regarded in their respective fields of expertise and made a significant contribution to the governance of Tasracing during their six-year tenure.
Mr Old is the CEO of the Tasmanian Hospitality Association and is a highly experienced non-executive director. His current board positions include the Tasmania JackJumpers in the National Basketball League and Visitor Experience Training. Ms Jacobson is a communication professional with more than 30-years in media, marketing and strategic planning. She is a former Committee Member of the Tasmanian Racing Club and is the Deputy Chair of the Choir of High Hopes, Hobart Inc.
I would also like to note the significant and important contribution of CEO Andrew Jenkins. Mr Jenkins was appointed to the position in February 2023 after acting in the role for much of the reporting period. The Board and I feel he has done an excellent job strengthening Tasracing’s relationships with participants, customers, racing clubs and peak body representatives. The significant focus applied to ensuring Tasracing staff feel part of a respectful, constructive workplace under Andrew’s leadership should also be noted. The Board has enjoyed working with him – and his team – on the further development of the industry in Tasmania.
Current directors David Garnier and Michael Gordon were re-appointed for a further three-year term.
And finally, I would like to thank former Racing Minister Madeleine Ogilvie for her support of Tasracing and the Tasmanian racing industry during 2022/23.
Gene Phair Chairperson
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FROM THE CHIEF EXECUTIVE OFFICER Tasracing’s five year Corporate Plan – in addition to setting the company’s strategic direction – tells a very good story when setting the scene for the remainder of the document. It notes: “The past five years have seen substantial improvements across all aspects of the Tasmanian Racing Industry.” To begin with, Race Field Fee revenue increased by $10 million, Point of Consumption Tax received totalled $7.1 million and stakes money across all three codes increased by $10 million. Investment in infrastructure was $28.5 million with no additional debt. Looking ahead over the coming five years, infrastructure investment is set to increase to $51.6 million, with $39 million of this funded from internal resources. These significant investments will underpin the growth of the racing industry by delivering safe and contemporary racing, training and public facilities.
These continuing strong results are supported by our investment in digital distribution and broadcast of the Tasmanian racing product. This investment ensures Tasmanian races are featured and promoted by wagering service providers, that Tasmanian races are scheduled and broadcast to optimise audience reach as far as possible and that we generate loyalty among wagering customers by providing market-leading form analysis products. Interest revenue increased to $1.14 million ($0.09 million in 2021/22) due to higher interest rates during the year.
Financial performance
Employee benefits increased $0.34 million or 3.6 per cent with significant restructuring occurring across the organisation during the year. This resulted in some temporary financial benefits due to several longer vacancies in the year. Sales and marketing costs declined to $1.79 million ($2.29 million in 2021/22) due to one off initiatives undertaken in the prior year. Other expenditure increased $0.31 million to $3.54 million ($3.23 million in 2021/22) primarily due to legal costs and participation initiatives.
Tasracing recorded a Total Comprehensive Profit of $0.42 million for 2022/23 ($4.23 million in 2021/22). This included a profit before tax of $0.40 million ($4.87 million in 2021/22) with a $0.10 million tax expense ($1.08 million in 2021/22) and an after-tax reduction in Defined Benefit Obligations of $0.18 million ($0.62 million in 2021/22).
Capital expenditure during the year was $18.38 million below target due to the change in location for the northwest tracks project and difficulties accessing contractors and supplies. These projects are still ongoing with cash and equivalents at year end totalling $17.03 million in support of a $21.24 million investment budget for 2023/24.
Racefield Revenue returns declined 4.2 per cent to $24.13 million ($25.20 million 2021/22) as a degree of post Covid normality returned to the wagering market and economic factors started to impact. Despite the decline in 2022/23, national wagering on Tasmanian racing product increased by $208.83 million or 35 per cent since the pre Covid 2018/19 to $807.76 million with an $8.916 million increase in commercial Racefield Revenue.
Prize money and industry funding Prize money and Industry funding benefitted from the trading conditions with an increase of $4.82 million for the year. This included a $4.88 million (15.7 per cent) increase in sustainable Code Funding with a saving in COVID-19 costs.. Total stakes money paid during the year across the three codes of racing increased $3.98 million to $30.76 million ($26.78 million in 2021/22).
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Economic contribution An updated independent economic impact report found that in the 2021/22 financial year the Tasmanian racing industry was responsible for generating close to $208 million in value-added contribution to the Tasmanian economy – 40 per cent of which directly benefited regional economies, with more than 6,400 individuals either employed, direct participants or volunteers. The industry generated almost $190 million in direct expenditure in the Tasmanian economy, with 48 per cent of this in regional communities. More than 63 per cent of racing participants are in regional communities. One of Tasracing’s key strategic principles is to increase the racing industry’s contribution to the Tasmanian economy.
Assets and infrastructure Given the Company’s continued strong financial performance, Tasracing is in a good position to sustainably invest in industry infrastructure. Tasracing is successfully delivering on the Tasmanian Government commitments announced in 2021/22, namely its $3 million investment into one-off infrastructure upgrades at the Longford Racecourse, the Brighton Training Centre and the Devonport Racing Club. The breakdown of investments is as follows:
•
Brighton Training Centre - thoroughbred track drainage upgrade – expected to be completed in late 2023.
•
Brighton Training Centre - harness track upgrade – expected to be completed in late 2023.
•
Spreyton Park Amenities - building upgrade – expected be completed in early to mid-2024.
These upgrades were important to ensure training infrastructure was fit for purpose, allowing trainers to adequately prepare their animals for racing. The training facilities listed are used by participants across all three codes. As part of Tasracing’s commitment to these projects, additional funds have been committed. These projects are at various levels of completion, though all are expected to be completed in 2023/24. In addition, more than $300,000 was awarded to Tasmanian racing clubs under the Tasmanian Community Racing Club Infrastructure Grants in 2022/23. Six grants were awarded to four clubs: Carrick Park Pacing Club, the Devonport Racing Club, the North East Pacing Club and the Tasmanian Turf Club. In 2022/23, Tasracing’s capital expenditure budget allocation saw the following projects completed across all three codes: •
Upgrade of Mowbray Mounting Yard.
•
Commissioning of new Safechase lure at Mowbray.
•
Longford Training Centre - thoroughbred track drainage upgrade – completed.
•
Commissioning of new greyhound starting boxes at Mowbray.
•
Longford Training Centre - construction of new 800m trial starting chute – completed.
•
Painting of Mowbray grandstand.
•
Refurbishment of Mowbray owners’ and trainers’ bar.
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•
Installation of asphalt at Elwick day stalls.
•
Removal of redundant infrastructure and upgrade to Elwick betting hall.
•
Removal of disused caretaker’s building at Elwick.
•
Drainage and overflow carparking at Elwick.
•
Commercial kitchen flooring replacement at Elwick.
•
Installation of LED advertising Billboards on the Brooker Highway and Goodwood Road at Elwick.
•
Installation of new AV screens and mega screen in the main grandstand at Elwick.
•
New maintenance shed and facility at Longford.
•
Day stall asphalt at Longford.
•
Construction of 44 stripping stalls at Carrick Park Pacing Club.
•
Safechase lure, fencing and catching pen upgrade at Brighton straight track.
•
Upgrade of lights and electrical within Brighton stable complex.
•
Road upgrade at Ulverstone straight track.
At the same time, significant improvements have been made to tracks across the state resulting in improved performance. At Elwick, the progress of the thoroughbred track is where Tasracing expected it to be given its past performance. At the end of the winter season the track is in a high-quality condition following an increase of trials and track gallops. Due to these improvements, race meeting numbers will increase from 21 to 24 in the 2023/24 season. The Mowbray thoroughbred track benefited from a renovation at the conclusion of the Good Friday race meeting. The work comprised dethatching, aeration, topdressing, fertilising and seeding. The track was in optimal condition for the start of winter racing. Key initiatives completed for tracks and racing facilities during the reporting period included: •
Repairs and upgrades to the Brighton greyhound straight track.
•
Elwick harness track resurfaced.
•
Brighton thoroughbred training track irrigation and drainage improvements.
•
WHS audit of all Tasracing sites.
•
Spreyton track rewaxing.
•
Assessment of stewards’ towers at all tracks.
•
Installation of drainage in Brighton bullring.
•
More sand introduced at Brighton and Longford training tracks.
•
Installation of an automatic gate in bullring at Brighton.
•
Drainage installed at the Longford thoroughbred turf track.
Tasracing announced its preferred location for harness and greyhound tracks on the north-west coast on 27 hectares of private land opposite the Devonport Airport in August 2022. Tasracing has lodged a Development Application (DA) and Subdivision application with Latrobe Council and is actively working with council to advance the development through the approvals process and to commence construction as soon as possible. Intensive greyhound and harness industry consultation has occurred during the DA process to present a sustainable development appropriate to the level and frequency of racing.
Racing For the 14th season in a row, Scott Brunton won the Australian Trainers Association Tasmanian Leading Trainer award with 65 winners. The highlight of his season was the performances of The Inevitable during the Ladbrokes Tasmanian Summer Racing (winning the Goodwood Handicap, the Listed Newmarket Handicap, the Listed Conquering Stakes, the Listed Tasmanian Stakes, the Listed Thomas Lyons Stakes and the Listed Hellova Street Stakes) before running third in the $5 million All Star Mile at Moonee Valley. Unsurprisingly, The Inevitable was named the Ladbrokes Tasmanian Horse of the Year. Adam Trinder’s Bello Beau was named the Devonport Racing Club Tasmanian 3YO of the Year after wins in the 3YO Cup and 3YO Trophy. Needs Sugar, trained by Stuart Gandy, was a narrow winner of the Tasmanian Turf Club Tasmanian 2YO of the Year award after her win in the Listed Elwick Stakes and second placings in the Listed Gold Sovereign Stakes, Alfa Bowl and Alexandra Plate during the Tasmanian Summer of Racing. Locally trained Swoop Dog won the Devonport Cup while Military Mission, from the Gai Waterhouse and Adrian Bott stable, won the Hobart Cup from Travelling Gigolo, trained locally by Scott Brunton. Aurora’s Symphony, from the Symon Wilde stable at Warrnambool, became the first horse since St. Andrews in 2002 and 2003 to make it backto-back Launceston Cups wins. In harness, the Tasmanian bred and part owned Longfellow won the Ladbrokes Horse of the Year award. In other awards, Triedtotellya was named the Medical Edge 2YO Colt or Gelding of the Year, Iylac Pakaria the Tasmanian Trotting Club 2YO Filly of the Year Award, Iden Boutique won the Launceston Pacing Club 3YO Filly of the Year Award, Mickey Oh the Corporate Communications 3YO Colt or Gelding of the Year and Iden Miss Lucy the Elderslie Horse Care & Spelling Mare of the Year Award. Trainer Ben Yole has won his seventh consecutive Hardings Hotmix / Devonport Harness Racing Club Leading Trainer Award and also established a new benchmark with 314 season wins, eclipsing his own performance from the 2021 season (231 winners). This outstanding performance also landed Ben the HRA J.D.Watts Award for the leading National Trainer (Total 393 wins).
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In greyhounds, Tasmania’s only feature Group 1 race – the Ladbrokes Hobart Thousand - was won by Victorian Fernando Mick for trainer David Geall while the Launceston Cup was won by Wynburn Ruby for local Ben Englund. The Group 3 Devonport Chase was won by the locally trained Rojo Diamond for Robin Grubb.
Greyhound Adoption Program Statistics Failed Assessment - Euthanised
Failed Assessment - Returned to Owner
28
3
1
30
22
2
38
23
14
0
2013/2014
60
35
24
1
2014/2015
100
63
33
1
2015/2016
94
85
20
0
2016/2017
118
111
18
5
Tasmanian Greyhound of the Year – Rojo Diamond.
2017/2018
99
111
18
2
Leading Trainer – Anthony Bullock.
2018/2019
79
89
6
0
Leading Owner – Robyn Johnson.
2019/2020
102
138
3
1
2020/2021
76
98
1
0
2021/2022
66
81
0
0
2022/2023
61
72
0
0
Tasracing, in conjunction with the Launceston Greyhound Racing Club, hosted the annual awards dinner in late January 2023 to announce the following awards.
Leading Breeding Female – Hoity Toity. Leading Sire – Fernando Bale. Most Consistent Greyhound – Dr. Hayley.
Financial Year
Entered
Adopted
2010/2011*
38
2011/2012
49
2012/2013
*Part Year Entries - An entry is recorded as the first time a greyhound enters GAP Adopted - A count of the number of adoptions
Racing Animal Welfare
Failed Assessment – Euthanised - Unsuitable for rehoming; euthanised on behavioural grounds (does not include euthanasia on medical grounds)
Animal welfare is critically important to Tasracing and Tasracing places the welfare of racing animals across all three codes front and centre of our operational decisions. To tangibly demonstrate this, the company is:
Failed Assessment – Returned to Owner - Unsuitable for rehoming; greyhound returned to owner
•
Investing in track infrastructure improvements that address safety.
•
Continuing to develop the Greyhound Adoption Program (GAP).
•
Enhancing equine-related post-race programs.
•
Examining animal welfare strategies regularly and ensuring national best practice is adopted where practical.
•
Providing regular training and information support for industry participants and owners on animal welfare matters.
Tasracing appointed Dr Martin Lenz to the newly created position of Chief Veterinary and Animal Welfare Officer during the reporting period. One of his principal roles has been to provide advice and services to Tasracing and the broader Tasmanian racing industry regarding the delivery of racing animal welfare and veterinary services. He is also leading Tasracing’s drive to ensure the organisation meets its animal welfare objectives. Dr Lenz joined Tasracing after six years as the Director of Veterinary Services and Animal Welfare at the Queensland Racing Integrity Commission. Prior to that he was Racing Queensland’s Chief Veterinary Officer. He is also a highly experienced equine veterinarian having worked at various practices in Australia, the United Kingdom and Singapore. Dr Lenz’s appointment to this newly created position is assisting us to continue to meet our racing animal welfare obligation and drive further improvement in line with community expectations.
One of the animal welfare initiatives introduced was the drafting of a comprehensive Code of Practice for Racing Horse Welfare. This document, which at the time of writing was undergoing final consultation, once adopted will provide clear guidance to the two codes of horse racing on minimum standards of horse husbandry, care and welfare throughout the whole lifecycle of these animals. The Greyhound Adoption Program Tasmania (GAP Tasmania) was established by Tasracing with the objective of giving permanent homes to greyhounds when they retire from racing. The GAP strives to increase the number of greyhounds rehomed responsibly year-on-year with the ultimate aim of the industry becoming the major rehomer of retired greyhounds in Tasmania. As a responsible adoption agency, GAP Tasmania has a duty of care to the greyhounds, our staff, our foster carers and members of the adopting public who entrust the GAP to carefully select the right dog to match their domestic circumstances and fit perfectly into their family life. The GAP recorded 72 adoptions for the reporting period, with one greyhound euthanised for medical reasons and one deceased. While seven adopted greyhounds were returned to the program, all were subsequently successfully rehomed. Funding for the Greyhound Recovery Rebate Scheme – which aims to increase the number of successfully treated racing injuries by providing financial support for the assessment, repair and rehabilitation of those injuries – was increased to $100,000 during the reporting period, with 76 greyhounds benefitting from the scheme. Given the positive
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uptake of the scheme by the greyhound industry, further refinement will be applied, and more funding made available for the scheme to continue to drive enhanced treatment outcomes for serious racing injuries next financial year. Another positive ongoing animal welfare initiative is the Greyhound Desexing Program, which paid out $120,732 for a total 244 greyhounds desexed during this reporting period. This scheme funds the cost of desexing all greyhounds upon their retirement (desexing became mandatory for all greyhounds retired from racing in 2020/21) and provides significant benefits, not only to the racing owners of the dogs, but also to all greyhound rehoming organisations, providing a racing industry-funded cost subsidy of around $500 per greyhound rehomed by those rehoming groups. The Tasracing Off-The-Track (OTT) program continued to expand over the reporting period, with a focus on continuing to drive demand for OTT horses within the equestrian community, and widening the scope of partner organisations and eligible horse disciplines. Sponsorship was provided for a large variety of OTT horse competitions and events across Tasmania and throughout the year.
The Subsidised Lessons for owners of OTT horses provided by Tasracing-funded OTT coaches proved highly popular, with a total of 84 applications for the free lessons provided for new owners of retired racehorses to assist them in learning the basics of OTT ownership and provide them with riding lessons to help train the riders and transition the horses into their new careers. New coaches were recruited to cover a larger geographical area of the state and cater for a more comprehensive range of equine disciplines. A new partnership with Petstock was formed, through which Hygain horse feed could accessed by new OTT owners. Nutritional advice for feeding of retired racehorses transitioning to OTT life continued to be provided by the Hygain nutritional information line. OTT Tasmania continues to partner with Cavalor, providing equine products that support the health and wellbeing of Off The Track horses within our community. OTT owners can make a selection from the Cavalor range, or arrange for a one-on-one consultation to discuss Cavalor product that best suit their horse’s needs.
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Greyhound on-track injury data Category A + B
Category C
Category D
Category E
(0-10 days)
(11-21 days)
(22 or more days)
(Euthanised / deceased)
Total Injuries
Per 1000 starters
Number
Per 1000 starters
Number
Per 1000 starters
Number
Per 1000 starters
Number
Per 1000 starters
299
23.5
39
3.07
20
1.57
15
1.18
373
29.31
209
18.65
46
4.1
30
2.68
16
1.43
301
26.86
244
19.3
58
4.59
26
2.06
18
1.42
346
27.37
161
16.45
52
5.31
31
3.17
13
1.33
257
26.26
12,127
246
20.29
73
6.02
43
3.55
7
0.58
369
30.43
2021/2022
11,887
177
14.89
58
4.88
50
4.21
9
0.76
294
24.73
2022/2023
11,792
188
15.94
61
5.17
49
4.16
5
0.42
303
25.70
Starters
Number
2016/2017
12,724
2017/2018
11,207
2018/2019
12,642
2019/2020^
9,788
2020/2021
Data source – ORI Stewards Reports ^ In FY20, racing was shut down for 10 weeks Data source – ORI Stewards Reports Note: 1. Injuries are categorised by ‘stand down’ time from racing as determined by the On-Track Veterinarian 2. In FY20, the way injuries were categorised changed to enable national uniformity in reporting FY17-19
FY20 onwards
Very minor (0-5 days)
Category A (0 days)
Minor (6-10 days)
Category B (1-10 days)
Medium (11-21 days)
Category C (11-21 days)
Major (> 21 days)
Category D (22 or more days)
Catastrophic (Euthanised / deceased)
Category E (Euthanised / deceased)
Greyhound retirement data 2018/2019
2019/2020
Number of dogs
(%)
Breeding
11
Deceased
38
Euthanised
2020/2021
2021/2022
Number of dogs
(%)
Number of dogs
(%)
Number of dogs
2.68
8
2.25
23
6.76
9.27
24
6.74
18
5.29
137
33.41
90
25.28
40
Rehomed
224
54.63
233
65.45
Other
0
0.00
1
0.28
Total
410
356
(%)
Number of dogs
(%)
11
3.6
11
3.6
32
10.5
23
7.6
11.76
43
14.1
17
5.6
259
76.18
219
71.8
251
82.6
0
0.00
0
0
2
0.7
340
305
Data source – OzChase National System Note: Data is ‘self-reporting’ and has not been independently verified •
2022/2023
Considerable improvement across the years in rehoming rate and the number of greyhounds deceased/euthanised • In FY23, 82.6% of all greyhounds exiting the industry retired to pet life (up from 54.63% in FY18). • In FY23, 5.6% of all greyhounds exiting the industry were euthanised (down from 33.41% in FY18).
Greyhound breeding data 2017/18
2018/19
2019/20
2020/21
2021/22
2022/23
Number of Litters
48
40
32
40
44
34
Pups Whelped
330
248
203
283
294
210
Data source – OzChase National System Note: Data is ‘self-reporting’ and has not been independently verified
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304
Harness retirement data 2018/19 Number of horses
2019/20
2020/21
(%)
Number of horses
(%)
Number of horses
2021/22 (%)
Number of horses
2022/23 (%)
Number of horses
(%)
Breeding
5
2.70
16
7.80
9
6.25
23
11.4
50
21.6
Deceased
23
12.43
17
8.29
10
6.95
32
15.8
26
11.3
Euthanised
73
39.46
73
35.61
54
37.50
31
15.4
47
20.3
Rehomed
83
44.86
99
48.29
71
49.31
116
57.4
108
46.8
Other
1
0.54
0
0.00
0
0.00
0
0
0
0
Total
185
205
144
202
231
Data source – Harness Racing Australia Database Note: Data is ‘self-reporting’ and has not been independently verified Breeding
refers to Standardbreds that leave the industry for breeding purposes
Deceased
refers to Standardbreds that have died because of accidental or natural causes
Euthanised
refers to Standardbreds that have been euthanised due to an injury or illness, unsafe to be rehomed or unable to be placed in a home. It includes euthanasia via veterinary surgeon and knackery/abattoir persons
Rehomed
refers to Standardbreds who have exited the racing industry for equestrian, pleasure, work, kept by owner, and entered an official PRA retirement program.
Other
refers to Standardbreds who have been sent to a livestock sale, or where DNA was unable to identify parentage
• Steady improvement across the years in rehoming rate and the number of Standardbreds deceased/euthanised o In FY23, 46.8% of Standardbreds retiring from the industry were rehomed (up from 44.86% in FY19) o In FY23, 20.3% of Standardbreds exiting the industry were euthanised (down from 39.46% in FY19)
Tasracing Annual Report 2023 | 18
Thoroughbred retirement data 2019/2020 Number of horses
2020/2021
2021/2022
(%)
Number of horses
(%)
Number of horses
2022/2023 (%)
Number of horses
(%)
Breeding
62
15.31
57
15.92
63
22.0
55
16
Deceased
30
7.41
19
5.31
13
4.6
9
3
Euthanised
60
14.81
43
12.01
23
8.0
31
9
Rehomed
245
60.49
237
66.20
181
63.3
248
72
Other
8
1.98
2
0.56
6
2.1
2
1
Total
405
358
286
345
Data source – Single National System (SNS) Note: Data is self-reporting and has not been independently verified Breeding
refers to Thoroughbreds that leave the industry for breeding purposes
Deceased
refers to Thoroughbreds that have died because of accidental or natural causes
Euthanised
refers to Thoroughbreds that have been euthanised due to an injury or illness, unsafe to be rehomed or unable to be placed in a home. It includes euthanasia via veterinary surgeon and knackery/abattoir persons
Rehomed
refers to Thoroughbreds who have exited the racing industry for equestrian, pleasure, working, companion horse, official PRA retirement program and breeding (non-racing) purposes
Other
refers to Thoroughbreds who have been sent to a livestock sale, or where their official status is unknown or has been incorrectly categorised through the self-reporting system
• Steady improvement across the years in rehoming rate of Thoroughbreds o In FY23, 72% of Thoroughbreds retiring from the industry were rehomed (up from 60.49% in FY20)
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Digital and customer reach
Industry consultation
During the reporting period, Tasracing’s customer database increased by 11 per cent, improving the ability to directly reach our audience with information relating to Tasmanian racing news, events and related entertainment.
Tasracing attends quarterly meetings with the Greyhound Reference Group, Harness Industry Forum and Thoroughbred Advisory Network.
A focus on social media as a platform to reach a new and varied audience saw a strong increase in reach and engagement across Tasracing accounts. Engagement opportunities were widened, with the introduction of new corporate brand channels for Tasracing and an expansion to TikTok and Instagram reels featuring story focused content to engage a younger audience. Tasracing’s It’s Why We Race Campaign, which saw “alwayson” awareness activity across a variety of channels and media, was developed to dispel myths and mistruths about the racing industry and highlight the industry’s economic impact on the state. In its first flight conducted in the final quarter of the reporting period, the social media campaign reached more than 2.2 million people, and 1.8 million targeted Tasmanians. Tasracing’s digital product, Formplus PRO, reached a milestone of more than 10,000 account sign-ups, representing a near 31 per cent increase compared to the previous financial year. Formplus PRO customer data is used to provide notifications about racing events and wagering products, including tips and staking strategies and black book runners, as well as prices and results, with a goal of driving wagering on Tasmanian racing and increasing race field fee revenue. TasracingTV continues to drive customer interest in Tasmanian racing with an increase in live hosted meetings. Investments in upgraded technology to future proof the platform were undertaken, along with improvements to graphic overlays and displays for a better customer viewing experience. Tickets sold across the Go Racing Tasmania and Summer Racing Festival websites increased by more than 87 per cent, providing improved customer data and insights for clubs and Tasracing to continue increasing attendance at Tasmanian race days.
There are also regular meetings on specific matters with the Tasmanian Trainers’ Association, the Tasmanian Jockeys’ Association and the Harness and Greyhound Owner, Trainer and Breeders association. I would like to take this opportunity to thank the industry representatives for their time, commitment and contribution to these important forums and discussions that assist Tasracing so greatly to formulate and implement policy. I am also particularly pleased with the continued strengthening of Tasracing’s relationship with racing clubs across the state and across all three codes. A number of new initiatives were successfully implemented during the reporting period thanks to this constructive joint approach.
Conclusion Looking back on the reporting period, I am very pleased to reflect on the way Tasracing has engaged, consulted and sought feedback from industry participants, our own staff and other external stakeholders on our strategic direction. There is no question that we are a better organisation and a better industry when working together. We will continue to take the opportunity to consult and listen to these stakeholders to make decisions on an informed basis that, on balance, we believe are for the betterment of racing, ensuring industry sustainability for many decades to come. I would like to particularly thank the committed and hardworking Tasracing team for a tremendous effort across the board, the management team which leads them and the Tasracing Board for its leadership and guidance. As a company we will work to ensure that racing in Tasmania maintains its high standards of performance, infrastructure and racing surfaces, providing a solid platform for growth and sustainability. Andrew Jenkins
Chief Executive Officer
Tasracing Annual Report 2023 | 20
Tasracing Annual Report 2023
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STATEMENT OF CORPORATE INTENT for the year ended 30 June 2023 The following table provides a summary of the Statement of Corporate Intent for the year ended 30 June 2023. FINANCIAL FY2023 $ Million Actual
FY2023 $ Million Target
NPAT
0.42
0.91
Race Field Revenue
24.13
22.32
Code Funding
35.92
34.48
Capital Expenditure
5.52
23.90
Animal Welfare Funding
1.61
1.66
Workers Compensation
0.93
1.00
POCT Infrastructure Program
0.41
0.85
NW Tracks Project1
0.54
14.50
Government Equity Contribution
1.91
2.10
Other Projects
2.86
6.45
Wagering Turnover
807.76
772.75
FY2023 Actual
FY2023 Target
Number races
568
570
Total Starters
5,210
5,526
Average Starters per Race
9.2
9.7
Number races
796
720
Total Starters
8,077
7,450
Average Starters Per Race
10.1
10.3
Number races
1,562
1,600
Total Starters
11,706
12,389
7.5
7.7
Licensed Persons
1,257
1,574
Stakes Money Paid
$30.76 M
$30.30 M
Breeder Bonuses Paid
105
200
WHS
FY2023 Actual
FY2023 Target
Lost Hours (Employees)2
3157.0
450.0
Toolbox Meetings Held
64
48
Jockey Raceday Injury Claims
1.0
4.0
Jockey Training Injury Claims (External)
1.0
1.0
Jockey Training Injury Claims (Tasracing)
5.0
5.0
Capital Expenditure Segmentation
NON-FINANCIAL Racing Information Thoroughbred
Harness
Greyhound
Average Starters Per Race
Tasracing Annual Report 2023 | 22
FY2023 Actual
FY2023 Target
Greyhounds Euthanased (Non Injury/Safety)
0
0
Greyhounds Rehomed
72
150
Welfare
OTT Lesson Vouchers Issued
840
1,500
FY2023 Actual
FY2023 Target
n/a
6%
Video Hours Consumption Growth
n/a
14%
Administration Costs
7.6%
5.9%
Asset Life Percentage
46%
60%
Operations Brand Awareness Growth3 4
Assets Fit for purpose or better
1
94%
93%
Thoroughbred Track Performance
FY2023 Actual
FY2023 Target
Summer (% of tracks presented good 3 to dead 5)
100%
85%
Winter (% of tracks presented good 3 to slow 7)
98%
85%
The Development Application has progressed within Council with public advertising commencing 23 August 2023. The Development
Application approval is forecast for the end of October 2023 with tender processes to commence immediately following approval. Site works are forecast to commence early December 2023. 2
870 hours related to claims subsequently declined while 1 long term claim was responsible for 1,703 hours.
3
During the financial year, Google released a new version of analytics, GA4 which changed the way analytics were collected and reported.
Upon reviewing the analytics for the past year, there was a large variance in one particular reach metric, Direct which means any figure provided will not represent an accurate comparison to the targeted brand awareness growth. 4
Tasracing switched Live Stream/On Demand video providers during the reporting period. Tasracing is able to report on number of hours
watched on the Live Stream, however On Demand playback is not reportable via the new provider. Tasracing has previously reported both Live Stream and On Demand, hence any figure provided will not represent the actual amount of hours viewed.
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COMPANY OVERVIEW Vision To build a united, sustainable and growing Tasmanian racing industry that is a respected source of entertainment.
Mission To grow the economic and cultural contribution to Tasmania from the racing industry by: Ensuring Community Support • Championing animal and participant welfare • Building awareness in the community of racing’s importance • Identifying, monitoring and effectively managing risks • Balancing the needs of all stakeholders Meeting stakeholder requirements • Balancing the needs of all stakeholders • Strengthening communication and relationships throughout the industry • Developing a passionate and high performing Tasracing team Improving commercial outcomes • Implementing strategies that maximise industry revenues • Assisting participants to be more professional and viable • Effectively and efficiently leading and administering the industry Tasracing is a State-owned company established under the Racing (Tasracing Pty Ltd) Act 2009 with two Shareholding Ministers, the Minister for Racing and the Treasurer. The principal objectives of Tasracing are outlined in the Racing Regulation Act 2004. Tasracing is the principal racing authority for Tasmania. It provides the strategic direction and funding to the three codes of racing in Tasmania – thoroughbred, harness and greyhound. In accordance with its legislative obligations, Tasracing is responsible for the development of racing and breeding, the funding of clubs, and providing stakes, negotiating media rights, and managing racing and training venues. The Office of Racing Integrity (ORI) is responsible for maintaining the probity and integrity of each racing code. An updated independent economic impact report found that in the 2021/22 financial year Tasmanian racing industry was responsible for generating close to $208 million in valueadded contribution to the Tasmanian economy – 40 per cent of which directly benefited regional economies, with more than 6,400 individuals either employed, direct participants or volunteers.
The industry generated almost $190 million in direct expenditure in the Tasmanian economy, with 48 per cent of this in regional communities. More than 63 per cent of racing participants are in regional communities. One of Tasracing’s key strategic principles is to increase the racing industry’s contribution to the Tasmanian economy. In part funded by the Tasmanian Government under the terms of a 20-year Funding Deed established in 2009, Tasracing must focus on commercial revenue in order to maintain financial sustainability. Prior to the Funding Deed the industry was self-funded through the operations of TOTE Tasmania. Only through financial sustainability can Tasracing deliver the growth in returns to racing participants essential for overall industry sustainability. The support for the industry via the Funding Deed – which is supplemented by increasing commercial revenue from Tasracing – provides racing industry participants with the confidence to continue investing in the industry. Tasracing’s commercial revenue is primarily derived from offcourse wagering customers. Revenue is earned through Race Field Fees applied to wagering service providers offering wagering on Tasmanian races to their customers. Since Tasracing was established in 2009, the racing and wagering landscape has continued to change rapidly. Privatisation of wagering providers, changing consumer preferences, rapid technological change and intensification of competition from sports betting and other forms of entertainment characterise Tasracing’s commercial environment. A vast majority of Tasracing’s wagering revenue is generated from interstate and overseas markets. A Point of Consumption Tax was introduced in Tasmania on 1 January 2020. The tax was set at a rate of 15 per cent of the net wagering revenue of wagering companies on Tasmanian racing. This rate is consistent with most other jurisdictions. The decision by the State Government to allocate 80 per cent of the project net returns to racing provides a strong sustainable base going forward. Additional revenue is generated from sponsorship and media rights. Integrity is a critical contributor to wagering customer confidence. The racing integrity function in Tasmania is managed externally to Tasracing by the Office of Racing Integrity (ORI). Tasracing works with the ORI by consulting and setting the Rules of Racing for all codes, provision of stewards’ facilities and provision of race day footage.
Tasracing Annual Report 2023 | 24
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OUR OPERATING ENVIRONMENT Tasracing, as a tri-code racing authority, must manage competing interests between codes, venues and participants. To achieve our strategic objectives, Tasracing needs to consult, collaborate and focus on fostering a commercial mindset, while respecting the passion and personal pursuits of participants. Racing is elite-level competitive sport. Safety remains our core priority and we will continue to focus and invest in systems, processes and initiatives which help to mitigate risk for participants and stakeholders. Enhancing animal welfare remains a core priority for Tasracing and the sport must also ensure it meets or exceeds expectations in order to maintain its social licence to operate.
Tasracing is faced with a complex operating environment, but one that has an exciting future. We respect our racing traditions but maintain our commercial focus and continue to invest in innovation and the reform to secure this future. Nationally and locally we face many challenges. However there are many exciting opportunities that are now afforded by our sustainable position and an increasingly connected digital world. Invest, innovate and differentiate are the three pillars of focus that drive our strategic principles, goals and initiatives.
Tasracing Annual Report 2023 | 26
BOARD OF DIRECTORS Our Board comprises seven non-executive directors: a chairperson, three directors who each have experience and expertise in one of the three codes of racing, and three directors with the experience and expertise necessary to enable the Company to achieve its objectives. Directors are appointed for a term of three years and may be reappointed at the expiry of that term subject to their contribution having been satisfactory and their skills continuing to be relevant to the Board. At the Annual General Meeting on 15 December 2022, Ms Suzie Jacobson and Mr Stephen Old were appointed to the Board for a term of three years. Mr Michael Gordon and Mr David Garnier were
re-appointed for a term of three years. Mrs Helen Galloway and Mrs Robyn Whishaw retired from the Board after each serving six years. The Board wishes to thank Mrs Galloway and Mrs Whishaw for their significant contributions and value services to the Board. The Board has six standing committees – Revenue, Audit and Risk, Asset and Safety, Racing Rules and Policy, Board Nominations and HR and Remuneration. A Director Selection Advisory Panel is convened as and when required to select a director with an independent panel member.
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OUR BOARD OF DIRECTORS Gene Phair (Chairperson) Appointed:
22 November 2018
Current term: 25 May 2023 to May 2026 Member:
Board Nominations (Chair), HR & Remuneration Committees and DSAP (Chair)
Mr Phair joined the Tasracing Board as Chairman on 22 November 2018. Mr Phair is a Fellow of the Chartered Accountants Australia and New Zealand and a member of the Australian Institute of Company Directors. He was a long-standing Board Member of the National Heart Foundation of Australia (Tasmanian Division) Chairman and Board Member of The Hutchins School.
Martin Wallace (Deputy Chairperson) Appointed:
18 November 2020
Current term: 18 November 2020 to November 2023 Member:
Audit and Risk Committee (Chair), Revenue Committee (Chair) and Asset and Safety Committee
Mr Wallace brings more than 30 years of experience in public administration, business and financial management, and has extensive regulatory policy experience. He also brings senior executive experience in the energy and telecommunications sectors. Mr Wallace is a former Secretary of the Department of Treasury and Finance in Tasmania and is a long-term participant in the racing industry in Tasmania, both as an owner of horses and as a hobby breeder.
Neil Grose Appointed:
25 November 2021
Current term: 25 November 2021 – November 2024 Member:
Assets and Safety and Racing, Rules and Policy Committees
Mr Grose has a diverse business experience across tourism, journalism, publishing, education, local government and regional economic development and is currently the Bell Bay Hydrogen Cluster Manager responsible for the regional economic development of local Tasmanian businesses as a key part of the emerging global green hydrogen industry. He is a member of the Boards of Harness Racing Australia and Rise Racing Australia representing Tasracing. Mr Grose holds two degrees in fine art and education and is a member of the AICD.
Michael Gordon Appointed:
21 September 2016
Current term: 15 December 2022 to November 2025 Member: Racing Rules and Policy Committee, HR and Remuneration Committee (Chair), Board Nominations Committee and DSAP A Director of PDF Management Services, a management consulting firm based in Hobart, he has a broad and diverse career, across the training, employment and youth sectors, 14 years with fire services in Tasmania and South Australia and as a small business owner and operator. Mr Gordon has bred, owned and raced greyhounds. He also has a long-standing association with the Harness and Thoroughbred codes, both as a participant and committee member. Mr Gordon is a member of the Board of Greyhound Australasia representing Tasracing. He holds a Bachelor of Business from the University of South Australia.
Tasracing Annual Report 2023 | 28
David Garnier Appointed:
26 November 2019
Current term: 15 December 2022 to November 2025 Member:
Audit and Risk Committee, Revenue Committee and Asset and Safety Committee (Chair)
Mr Garnier is an experienced business executive and board representative, with experience spanning over 30 years across technology, banking, telecommunications, gaming and wagering, agriculture and media sectors. These roles include board and senior operational roles in Australasia, Hong Kong and China. In addition to executive and leadership roles in listed companies, he has been responsible for organisational change, capital raisings, M&A operations and business strategy. Since returning to Australia in 2015 Mr Garnier has focussed predominantly on strategic consulting in digital markets and managing capital raisings for strategic clients. Current business relationships include being Alibaba’s Alipay Marketing Partner in Australia and New Zealand via the platform www.chinainabox.org which his company, New Wave, established in 2017.
Suzie Jacobson Appointed:
15 December 2022
Current term: 15 December 2022 to November 2025 Member:
Racing Rules and Policy Committee, HR and Remuneration Committee and Board Nominations Committee
Ms Jacobson is a communications professional with more than 30 years of experience in media management, marketing and strategic planning. A former journalist, she has a comprehensive understanding of Government processes and good networks among all tiers of Government, media and private industry in Tasmania. Ms Jacobson has a strong understanding of corporate governance, with over 10 years of experience on not-forprofit boards and extensive involvement in and chairing high-level committees and meetings. Ms Jacobson has a long-standing interest in thoroughbred racing in Tasmania, is a racehorse owner and was a committee member at the Tasmanian Racing Club (TRC).
Steve Old Appointed:
Appointed: 15 December 2022
Current term: 15 December 2022 to November 2025 Member:
Revenue Committee, HR and Remuneration Committee and Audit and Risk Committee
Mr Old is currently the Chief Executive Officer of the Tasmanian Hospitality Association and has been for over 15 years, representing the interests of hotels, pubs, accommodation venues, cafes, and restaurants as well as sporting, RSL and community clubs. He is a highly experienced non-executive director. His current board positions include the Tasmania JackJumpers in the National Basketball League (NBL) and Visitor Experience Training (VXT). Mr Old formerly worked as a Chief of Staff and racing adviser from 2000 – 2007 and has held numerous Chair and board roles within sporting organisations in Tasmania. He is a current member of the Carbine Club of Tasmania and a member of the AICD.
Helen Galloway (Preceding Director) Appointed:
20 July 2016 - Retired 15 December 2022
Member:
Audit and Risk (Chair), HR and Remuneration (Chair) and Board Nominations Committees
Mrs Galloway was appointed as the Deputy Chairperson of the Board in December 2019. An experienced executive in the commercial gaming industries, Mrs Galloway was formerly a vice president of casino development and strategic analysis with Marina Bay Sands in Singapore and Sand China Limited in Macao. Mrs Galloway is a Fellow of CPA Australia (FCPA) and a graduate of the Australian Institute of Company Directors. Mrs Galloway is also on the Board of TT-Line Company Pty Ltd, Sorell Council Audit Panel, Bank of Us and Hydro Tasmania.
Robyn Whishaw (Preceding Director) Appointed:
21 December 2016 - Retired 15 December 2022
Member:
Racing Rules and Policy (Chair) Committee
An owner and operator of the highly successful Armidale Stud in Carrick in northern Tasmania, Mrs Whishaw is a member of the Tasmanian Racing Hall of Fame and a former chairperson of the Thoroughbred Advisory Network. Mrs Whishaw represented Tasracing on the Board of Racing Australia. Mrs Whishaw holds a Bachelor of Education from the University of Tasmania.
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| 29
Directors’ meeting attendance 2022/23 Board
Audit & Risk
Assets & Safety
RR & Policy
A
A
A
A
B
Gene Phair
14
14
Martin Wallace
14
14
Neil Grose
14
13
Michael Gordon
14
14
David Garnier
14
14
Suzie Jacobson
6
6
Steve Old
6
6
3
3
Helen Galloway
8
7
2
2
Robyn Whishaw
8
7
5
5
B
5
5
B
3
3
3
3
3
B
5
5
5
5
HR & Rem
Board Noms
Revenue
A
B
2
2
2
2
2
2
A
B
A
B
3
3
2
2
3
3
2
2
3 2
2
2
3 3
2
2
A Eligible B Attended
The Company Secretary is responsible for delivering corporate governance advice to the Board, Chief Executive Officer and management.
Tasracing Annual Report 2023 | 30
2
Our organisational structure Our structure has been designed around the following service pillars: Racing Operations, Projects & Facilities, Animal Welfare, Marketing, Finance, Legal & Compliance and People & Culture. Our culture is inclusive and performance driven, with a focus on accountability, empowerment, risk minimisation and optimised service delivery for the racing industry.
BOARD
COMPANY SECRETARY
CEO ANDREW JENKINS
MICHAEL HARVEY
CFO
CV & AWO
COO
CPO
DARON HEALD
MARTIN LENZ
DAVE MANSHANDEN
CLAIRE WILLEMSE
FINANCE MANAGER ANDREW CLARK
GM MARKETING JACKIE FARRELLY
GM LEGAL & COMPLIANCE NICHOLAS WALKER
RACING & TRACK FACILITIES MANAGER BRYAN DUNN
PARTICIPATION & INDUSTRY DEVELOPMENT MANAGER
Tasracing Annual Report 2023
WARREN HEILIG
| 31
RACING OPERATIONS MANAGER LIAM SWAN
GM PROJECTS & ASSETS PETER MACFARLANE
Racing Operations
Our Racing Operations Team is responsible for programming, racing, management of stakes allocation, rules and policies, industry education and training of jockeys and drivers along with general management for all three codes of racing within Tasmania. The team is also responsible for the management and oversight of all industry workshops and awards along with breeding schemes and sales (Magic Millions) and liaison with major media broadcasters including Sky Channel.
Welfare
Our Welfare Team sets the strategic direction for the welfare of racing animals across the three codes of racing in Tasmania. It is responsible for enhancing animal welfare and achieving legislative and best practice animal welfare objectives. The Welfare Team develops and implements Tasmanian animal welfare programs and initiatives, oversees the Greyhound Adoption Program (GAP) and Off The Track (OTT).
Project & Facilities
Our Projects and Facilities Team works closely with the Racing Operations Team to facilitate all race meetings of the three codes of racing across the state. It is primarily responsible for the day-to-day operational oversight and maintenance/preparation of the tracks, staffing requirements for the thoroughbred meetings and key harness raceday employees, workplace safety and health and Tasracing training venue operations. The Team is also responsible for identified planned strategic and reactive risk mitigation. Deliverables include assisting race clubs to engage with new and existing industry participants and patrons through improved venue experiences by undertaking capital infrastructure projects and operational maintenance services.
Marketing
Our Marketing Team is responsible for presenting our racing product in order to drive wagering revenue growth. To achieve this, the team undertakes a range of strategic partnerships, promotion and digital product development. The Team also provides marketing and event assistance to racing clubs to help them attract and retain on-course customers. Marketing also develops and implements communication programs designed to grow public understanding of the racing industry and its value to the economy and the community.
Finance
The Finance Team delivers a range of financial and administrative functions to support Tasracing’s core operational areas of racing operations, animal welfare and infrastructure maintenance. The team strives to provide accurate and timely financial services, including transaction processing, measurement and reporting of financial information, monitoring adherence to internal controls, plus compliance with legislative requirements. Key responsibilities of the team include payment of stakes, payroll, budgeting and forecasting, internal and external reporting, risk management and business analysis.
Legal & Compliance
Our Legal Team is responsible for the management of Tasracing’s legal and governance functions, including the provision of legal advice and services to all parts of the business, compliance management and regulatory affairs.
People & Culture
People & Culture is responsible for the strategic framework of all employee lifecycle activities, including the management and support of recruitment, onboarding, performance management, ER/IR navigation, training & development, remuneration and benefits, workers compensation and offboarding.
Tasracing Annual Report 2023 | 32
OUR MANAGEMENT TEAM Tasracing Executive
Left to Right: Daron Heald (CFO), Dr Martin Lenz (CV&AWO), Andrew Jenkins (CEO), Dave Manshanden (COO), Claire Willemse (CPO)
Tasracing Management Team
Left to Right: Bryan Dunn (Racing & Tracks Facilities Manager), Peter McFarlane (GM Projects & Assets), Jackie Farrelly (GM Marketing), Liam Swan (Racing Operations Manager), Andrew Clark (Finance Manager), Nick Walker (GM Legal & Compliance), Andrew Jenkins (CEO), Warren Heilig (Participation & Industry Development Manager)
OUR VALUES
INTEGRITY • Trustworthy • Ethical • Honest • Accountable • Transparent
RESPECTFUL • Open to all ideas and views from staff and stakeholders • Listen with empathy • Empower staff
ADAPTABILITY • Embrace change • Innovate • Capitalise on opportunities
COLLABORATION • Acknowledge and value the contribution and efforts of all • Ensure
EXCELLENCE • Dedication to quality work • Results orientated • Continuous
co-operation between our teams and stakeholders • Effectively communicate
improvement • Long term sustainability and growth focus
Tasracing Annual Report 2023 | 34
CORPORATE PLAN In line with our Shareholding Ministers’ expectations, Tasracing undertakes annual updates to a rolling five-year Corporate Plan. The Corporate Plan is presented annually to the Shareholding Ministers for approval. Tasracing’s current Corporate Plan has a strong focus on customers, commercial partners, industry participants, staff, infrastructure and welfare. The Tasmanian racing industry lacks assurance of long-term funding and social licence. Tasracing is focused on the development of a united, sustainable and growing Tasmanian racing industry that is a respected source of entertainment. The commercial strategies it will implement to achieve this are: 1. Grow and better communicate racing’s economic contribution. 2. Lead with animal welfare. 3. Develop a more professional and viable racing industry. 4. Effectively manage risk. 5. Community recognition of racing’s importance. 6. Build commercial sustainability.
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OUR STRATEGIC PRINCIPLES Tasracing’s primary purpose is to develop a competitive and sustainable racing industry in Tasmania. We are committed to: •
operating in accordance with sound commercial practice and within current funding commitments as provided for in the Funding Deed
•
supporting and promoting the racing industry in Tasmania
•
developing strategies and initiatives to address cost efficiencies
•
ensuring the safety of the public, racing participants and employees by implementing and complying with best practice operating procedure
•
maintaining the safety and efficiency of our facilities by developing appropriate maintenance and capital improvement programs.
Our strategic principles represent key themes within our corporate plan. They align with our Shareholders’ Statement of Expectations.
Tasracing Annual Report 2023 | 36
Maximise economic contribution
Maintain tri-code presence in three regions (North-West, North and South)
Responsibly manage risk including safety
Maximise commercial performance
Safeguard animal welfare
Valued by the community for what we do and what we stand for
Tasracing Annual Report 2023
| 37
THOROUGHBRED CODE REPORT Tasmanian Thoroughbred code funding increased by 12.7 per cent ($2,106,506) to $18.65 million in 2022/23. The increase was used to increase stakes across the board for all races, as well as to increase stakes for some feature races. Wagering turnover on Tasmanian thoroughbred racing totaled $361.0 million during the year, compared to $369.5 million in 2021/22. Jockey Brendon McCoull won the Tasmanian Racing Club Tasmanian Leading Jockey Award for the 15th time with 54 wins, while Chelsea Baker won the Skillinvest Leading Apprentice award with 34 wins. She was also named the Tasmanian Jockeys Association Dux of Apprentice School while Chloe Wells won the inaugural Carbine Club Raquel Clark Encouragement Award.
before running third in the $5 million All-Star Mile at Moonee Valley – was named the Ladbrokes Tasmanian Horse of the Year. Bello Beau from the Adam Trinder stable was named the Devonport Racing Club Tasmanian 3YO of the Year after wins in the 3YO Cup and 3YO Trophy. Needs Sugar, trained by Stuart Gandy, won the Tasmanian Turf Club Tasmanian 2YO of the Year award after her win in the Listed Elwick Stakes and second placings in the Listed Gold Sovereign Stakes, Alfa Bowl and Alexandra Plate during the Ladbrokes Summer Racing Festival. Sirene Stryker from the Mark Ganderton stable was named the Armidale Stud Leading Tasmanian Filly or Racemare for the season.
David Evans, who has worked as the starter for more than 30 years, was presented with the Tasracing Industry Appreciation Award.
Alpine Eagle, which stands at Armidale Stud, was named the Magic Millions Leading Tasmanian-based Juvenile Sire and the Tasbreeders Leading Tasmanian-based Sire.
For the 14th season in succession, Scott Brunton won the Australian Trainers Association Tasmanian Leading Trainer award with 65 winners.
The Grenville Stud Tasmanian Broodmare of the Year was Tiare, who stands at Grenville Stud and is the dam of Group 1 winner Think About It.
The Scott Brunton-trained gelding The Inevitable – which won the Goodwood Handicap, Listed Newmarket Handicap, Listed Conquering Stakes, Listed Tasmanian Stakes, Listed Thomas Lyons Stakes, and Listed Hellova Street Stakes
Five-year-old Swoop Dog, trained by John Blacker and ridden by Sigrid Carr, won the Devonport Cup. This gave Blacker his fourth win in the race, while it was the second time Carr has ridden the winner of the race.
Tasracing Annual Report 2023 | 38
Military Mission, from the Gai Waterhouse and Adrian Bott stable, won the Hobart Cup from Travelling Gigolo which was trained locally by Scott Brunton. New South Wales based jockey Winona Costin was the successful rider. Aurora’s Symphony, from the Symon Wilde stable at Warrnambool, became the first horse since St. Andrews in 2002 and 2003 to make it back-to-back Launceston Cups wins. Hobart Cup winner Military Mission could only manage ninth, meaning the lucrative $100,000 Ladbrokes Double Cup Bonus was not collected this season. The 2023 Tasmanian Magic Millions Yearling Sale was again a success with a gross of $3.97 million and a clearance rate of 86 per cent. From a catalogue of 140 lots, 129 lots were offered for sale, with 111 lots sold at an average of $35,761, a decrease of seven per cent on the 2022 sale results. A filly by Stratosphere out of the mare Ehor offered by Grenville Stud topped the sale, purchased by Star Thoroughbreds/Randwick Bloodstock Agency (FBAA) from New South Wales for $105,000.
Stakes night at Moonee Valley produced a turnover figure of $10.4 million and was only bettered for the year by the turnover figure on Launceston Cup Day. The majority of night meetings were held on Wednesday nights. Average turnover generated per meeting was $6.8 million per meeting, a decrease of 5.6 per cent from 2021/22. Tasracing acknowledges the efforts of the members of the Thoroughbred Advisory Network (TAN) who meet with Tasracing on a quarterly basis. Tasracing looks forward to continuing to work with TAN members to further strengthen and improve thoroughbred racing in Tasmania. Tasracing continued to deliver race day function operations at the Devonport Racing Club, the Tasmanian Turf Club and the Tasmanian Racing Club. This delivers efficiencies across all venues and allows for a coordinated, centralised system that complements Tasracing’s ongoing statewide responsibilities for tracks and assets.
Night racing at Launceston continued to be successful with race meetings generating high returns. There were three Friday night meetings in Launceston in 2022/23. The meeting held on 21 October to coincide with Manikato
Tasracing Annual Report 2023
| 39
Thoroughbred wagering turnover ($M) 369.0m
361.0m
+7.7%
-2.3%
2021/22
2022/23
343.0m
259.5m 203.0m +6.9%
-21.8%
2018/19
2019/20
+69.0%
2020/21
Total code allocation thoroughbreds ($M)
19.9m 18.7m
16.9m
15.0m 13.9m
2019/20
2020/21
2023/24
2022/23
2021/22
Key racing statistics thoroughbreds
Meetings
18/19
19/20
20/21
21/22
22/23
72
58
71
65
70
Races Held
553
454
574
534
568
Overall Starters
4,976
3,996
5,108
4875
5210
Average Starters/Race
9.0
8.8
8.9
9.1
9.2
Thoroughbred Stakes ($)*
11,699,492
9,970,041
12,954,490
14,276,370
16,425,596
COVID-19 Welfare Payments ($)
-
2,037,698
-
-
-
Thoroughbred Code Funding ($)*
13,406,140
13,930,814
15,031,557
16,918,850
18,653,557
* Representing amounts expensed during the financial year. Unspent Code Funding Allocation is carried forward to future years which may include stakes.
Tasracing Annual Report 2023 | 40
Thoroughbred Award Winners Ladbrokes Tasmanian Horse of the Year ROAT Owner Recognition Award TJA DUX of Apprentice School TAN Recognition Award Tasracing Industry Appreciation Award Carbine Club Raquel Clark Encouragement Award Magic Millions Leading Tasmanian-based Juvenile Sire Tasbreeders Leading Tasmanian-based Sire Grenville Stud Tasmanian Broodmare of the Year Armidale Stud Leading Tasmanian Filly or Racemare ATA Leading Tasmanian Trainer TRC Leading Tasmanian Jockey Skillinvest Leading Tasmanian Apprentice TTC Tasmanian 2YO of the Year DRC Tasmanian 3YO of the Year
Tasracing Annual Report 2023
| 41
The Inevitable Barry Diprose Chelsea Baker Robyn Whishaw David Evans Chloe Wells Alpine Eagle Alpine Eagle Tiare Sirene Stryker Scott Brunton Brendon McCoull Chelsea Baker Needs Sugar Bello Beau
HARNESS CODE REPORT Harness racing in Tasmania received two funding increases in 2022/23. After industry consultation, the initial increase was allocated to Code Bonuses, Drivers’ Fees, some Feature Events and the programming of an additional race at the secondary meeting. The additional funding saw increases across some of the smaller Feature Events as well as the Tasmanian Cup to maintain its Group 1 status, stake increases across base races at the premier meeting, maidens and 2 & 3YO races, as well as the introduction of a new Trainer Encouragement series. Tasmanian harness racing stakes remains competitive when comparing country prize money levels. There were 28 feature races held in Tasmania during FY23 with stake money of $20,000 or more. Prize money across these races totaling $1,087,000. Interstate trainer Emma Stewart again made herself known at many of our Feature nights. Winning the $60k Raider Stakes final with locally bred 4YO gelding Longfellow, The $20k Golden Slipper with 2YO Rock Artist, the $20k Golden Girls with 4YO Mare So Art I NZ, the $40k Hobart Pacing Cup with Hes Ideal, the $30k George Johnson with Major Grace NZ, the $20k Keith Stanley Debutante with Renewal and the $150k Tasmania Cup with Wheres the Gold NZ. Another Victorian trainer Allan McDonough won the Golden Apple with his 4YO horse Blitzern. Local trainer Kent Rattray won both the $40k Devonport Cup (Sunny Sanz) and the $75k Easter Cup (Colby Sanz).
The Tasbred Sire Stakes was moved to the latter part of the year. Improvements were seen across both wagering and field sizes with heats held over multiple weekends for both the 3 and 4YO series. Winners of the $60,000 Finals were – 2YO Fillies Iylac Pakaria (Bianca Heenan), 2YO Colts & Geldings Tiredtotellya (Matthew Howlett), 3YO Fillies Iden Boutique (Christian Salter), 3YO Colts & Geldings Mickey Oh (Matthew Howlett), 4YO Mare Looby Lombo (Todd Rattray), 4YO Gelding Longfellow (Emma Stewart). The National Ratings Handicapping System introduced on 1 July 2019 has continued to deliver positives within the code across Australia. Increased wagering, field sizes and more competitive racing are the specific outcomes. A Ratings Review Team with representatives from each state meets on a regular basis to discuss feedback from the industry. With the assistance of the Programming sub-committee and Programming guidelines, Tasracing continues to deliver a variety of race programs to provide the Tasmanian industry an opportunity to achieve the best start for their horse/s. King Island Racing was again scheduled to be held over the December/January period with seven combined Harness / Thoroughbred meetings. Standardbred numbers on the island had declined from previous years but was still sufficient to run 2 races per meeting. Local trainer Paul Williams dominating the season taking out 10 of the 14 programmed races, with Tisu Storm winning six, Rocknroll Nitro three and Alkatraz one.
Tasracing Annual Report 2023 | 42
the month of May sponsored drivers wear pink pants with all sponsorship funds donated. This year Harness Starter Adam Emery also got on board the promotion sourcing two sponsors that advertised on a pink jacket for this period. In addition to this a function was scheduled at Launceston but was cancelled due to insufficient ticket sales. The Tasracing Code-Lead designed beanies to be sold for additional fundraising which were a hit in many states. A total of $126,000 was raised across the participating jurisdictions. Improvements to the Tasbred bonus scheme continues with increased funding each year being contributed to breeding in Tasmania. With all horses regardless of age receiving the $10k bonus ($6k owner / $2k breeder / $2k breeder coupon) on their maiden win, 43 bonuses were paid out totaling $332,000. Additional to this $73,588 was paid out in breeders’ coupons and 116 foal born payments totaling $232,000. Payment of foal notifications saved industry participants more than $25,000.
Tasmania participated in both the Australian Drivers’ Championship, SA (Sept 2022) and the Female Drivers’ Championship, Qld (April 2023). Conor Crook and Rohan Hillier were the representatives for the ADC, however due to flight cancellations Rohan lost the opportunity to drive in SA. Conor represented Tasmania well finishing 10th place on 38 points. Tiarna Ford and Hannah Vandongen were the AFDC representatives. Competing in six heats over one night at Albion Park, Hannah finished 12th on 17 points with Tiarna taking away 3rd place on 38 points. The Team Teal promotion was held for a six-week period from 1 February to mid-March concluding in Tasmania with the Tasmania Cup meeting in Hobart. Leading female driver Bronte Miller was the Team Teal ambassador with Faith Colgrave the Mini Trot ambassador. Unfortunately, Bronte was unable to drive during this period handing over the reins to fellow reinswomen Tiarna Ford. Donning teal pants for the promotional period, $200 for each female winning drive was donated. Due to the declining number of female drivers in the state Tasracing agreed to also donate $200 per female Tasmanian trainer win. Tasmania tallied a total of 11 wins, Tabcorp matching dollar for dollar for each female winning drive, and 12 female trainer wins. A total of $193,280 was raised Nationally (including New Zealand). Continued in 2023 was the Pacing for Pink campaign which raises funds for the McGrath Foundation. Held over
The Harness Industry Forum (HIF) continued to meet quarterly in 2022/23. Tasracing appreciates the time and effort all HIF participants commit to this process that facilitates direct interaction and consultation between Tasracing and the Industry. Though it was introduced on 1 July 2023, it is important to reference the Equity in Participation Policy (EIPP) for the harness code. Under the policy, horses trained by a single trainer (or under the effective control of a single trainer) cannot make up more than 50 per cent of starters in any race field. The policy, which has been an agenda item at Harness Industry Forum meetings throughout the reporting period, recognises the importance of providing all harness trainers (particularly small or “hobby” trainers) with the opportunity to access races. It is intended that the policy will provide smaller trainers with the opportunity to consistently gain access to ratings-based handicap races. The policy will not apply to the following circumstances: •
Feature races as defined in the Tasmanian Harness Feature Race Calendar.
•
Races that are finals from heats.
•
Races in which acceptances for that race will not see the maximum field size for the race achieved, in which case any remaining race field places can be filled by horses which would otherwise have been prevented from racing because of the policy’s restrictions.
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Harness Wagering turnover ($M) 131.1m
127.1m
+8.0%
-3.0%
2021/22
2022/23
121.4m
92.4m 73.5m
+65.2%
-3.5% -20.5%
2018/19
2019/20
2020/21
Total code allocation Harness ($M) 9.8m 9.0m
8.2m 7.1m 6.7m
2019/20
2020/21
2022/23
2021/22
2023/24
Key racing statistics Harness
18/19
19/20
20/21
21/22
22/23
Meetings
90
68
85
85
88
Races Held
721
550
724
737
796
Overall Starters
7,050
5,520
7,249
7722
8077
Average Starters/Race
9.8
10.0
10.0
10.5
10.1
5,689,119
4,381,981
6,131,689
6,903,737
7,801,003
-
1,465,765
-
-
-
6,492,477
6,700,609
7,096,794
8,185,799
8,961,248
Harness Stakes ($)* COVID-19 Welfare Payments ($) Harness Code Funding ($)*
* Representing amounts expensed during the financial year. Unspent Code Funding Allocation is carried forward to future years which may include stakes.
Tasracing Annual Report 2023 | 44
The following Tasmanian 2022 Harness Racing Awards recipients were celebrated at the Tailrace Centre, Riverside.
Harness Award Winners Leading Trainer Ben Yole Leading Driver Mitch Ford Leading Junior Driver Mitch Ford Leading Female Trainer Bianca Heenan Leading Female Driver Bronte Miller Tasracing Mini Trot Award Tamsyn Davis 2YO Colt or Gelding of the Year Triedtotellya 2YO Filly of the Year Iylac Pakaria 3YO Colt or Gelding of the Year Mickey Oh 3YO Filly of the Year Iden Boutique 4YO & Older Horse of the Year Longfellow 4YO & Older Mare of the Year Iden Miss Lucy Broodmare of the Year Soho Summer Horse of the Year Longfellow Beautide Award Ryley Major Industry Award Barrie Rattray Young Achiever Award Jacob Duggan Halwes Award Matthew Howlett Edgar Tatlow Brian Mackrill
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GREYHOUND CODE REPORT Greyhound racing benefited from two funding increases in 2022/23 – the first in October and the second in December. After consultation with industry, the October increase was allocated to the heats for Tasmania’s three Group races - the Hobart Thousand, The Ladbrokes Chase and the Launceston Cup (the Group 1 Hobart Thousand prize money for first place increased to $100,000) and an increase in general stakes for sprint and distance racing was introduced. The December increase was used to set new stake levels for both the Hobart Thousand and the Launceston Cup to ensure they retained their Group 1 and Group 2 status respectively. The Maiden Thousand, Reg & Aileen Ivory and the Rising Stars were also increased, general stakes for all races were also increased and a new Tasbred series of races was created. Tasracing continued to consult with industry through the Greyhound Reference Group (GRG) comprising delegates from each club and the Greyhound Owners, Trainers and
Breeders Association of Tasmania. The GRG held four formal meetings during the year. The Programming Sub-Committee, which provided recommendations on programming and feature events, met on four occasions during the year. In March, a 2023/24 Racing Calendar and feature events meeting was held with members from Tasracing, the Office of Racing Integrity and club representatives. Tasmania’s Hobart Thousand was won by Victorian Fernando Mick for trainer David Geall while the Launceston Cup was won by locally trained Wynburn Ruby for Ben Englund. The Group 3 Devonport Ladbrokes Chase race was taken out by the locally trained Rojo Diamond for Robin Grubb. Tasracing and Ladbrokes introduced the Ladbrokes Triple Treat Connections Bonus – a $100,000 bonus for the owner / trainer of any greyhound that can win the finals of The Chase, the Ladbrokes Hobart Thousand and the Ladbrokes
Tasracing Annual Report 2023 | 46
Launceston Cup in the one season. If one greyhound cannot win all three races, a $25,000 bonus will be paid to the owner / trainer of the greyhound to win two of the eligible races. For the record, Rojo Diamond contested all three finals, winning Ladbrokes Chase, running third in the Hobart Thousand and fourth in the Launceston Cup. Tasracing, in conjunction with the Launceston Greyhound Racing Club, hosted the annual awards dinner in late January 2023 to announce the following awards. •
Tasmanian Greyhound of the Year – Rojo Diamond (17 wins and 4 placings from 24 starts in Tasmania, including winner of the Ladbrokes Chase, Silver Trophy and a brave third in the Group 1 Hobart Thousand)
•
Leading Trainer – Anthony Bullock (222 winners)
•
Leading Owner – Robyn Johnson (110 winners)
•
Leading Breeding Female – Hoity Toity (progeny won 57 races)
•
Leading Sire – Fernando Bale (progeny won 251 races in Tasmania)
•
Most Consistent Greyhound – Dr. Hayley (18 wins, 18 seconds and 7 thirds from 53 starts in Tasmania)
Following the success of the introduction of the SafeChase lure at Mowbray more than 12-months-ago, the lure system has been implemented, along with track upgrades, at the Brighton straight track. The SafeChase is also planned to be used in Hobart with an early August 2023 timeline.
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Greyhound wagering turnover ($M) 359.7m
334.9m
319.6m
247.1m 199.3m
+4.0%
+19.3%
+68.0%
+7.4%
-11.1%
2018/19
2019/20
2020/21
2021/22
2022/23
Total code allocation Greyhound ($M) 5.9m
6.5m
5.2m 4.8m 4.6m 4.4m
2017/18
2018/19
2019/20
2020/21
2021/22
2022/23
22/23
Key racing statistics Greyhound 18/19
19/20
20/21
21/22
Meetings
157
130
158
159
157
Races Held
1,585
1,252
1,558
1539
1562
Overall Starters
12,339
9,596
11,979
11734
11706
Average Starters/Race
7.8
7.7
7.7
7.6
7.5
Greyhound Stakes ($)*
4,351,245
3,630,290
5,087,020
5,599,286
6,534,955
COVID-19 Welfare Payments ($) Greyhound Code Funding ($)*
-
505,693
-
-
-
4,578,647
4,849,975
5,206,954
5,930,429
6,544,686
* Representing amounts expensed during the financial year. Unspent Code Funding Allocation is carried forward to future years which may include stakes.
Tasracing Annual Report 2023
| 49
CORPORATE GOVERNANCE Tasracing is committed to the principles of good corporate governance. We believe in transparency, accountability and integrity for the benefit of our Shareholding Ministers, employees, industry participants and all other stakeholders. Tasracing operates under a framework that is consistent with the ASX Corporate Governance Council’s eight corporate governance principles and recommendations in line with the Shareholding Ministers’ expectations under the Tasmanian Government Businesses Governance Framework Guide. Our position on the eight core corporate governance principles and recommendations is summarised below:
PRINCIPLE 1: Lay solid foundations for management and oversight FUNCTIONS OF THE BOARD The Tasracing Board of Directors is responsible for the overall performance in achieving the Company’s objectives and legislative obligations – as set out in the Racing Regulation Act 2004, and the Members’ Statement of Expectations. The key responsibilities of the Board include: •
considering and determining the strategic direction of Tasracing
•
adopting annual corporate plans and budgets
•
reviewing and assessing executives’ performance against set objectives
•
reviewing and approving major expenditure items and policies
•
reviewing and monitoring risk management processes
•
reviewing and approving rules of racing
•
ensuring compliance with key policies, guidelines and legislative obligations
•
appointing the Chief Executive Officer and the Company Secretary
MANAGEMENT AND DELEGATED AUTHORITIES The Chief Executive Officer, Chief Operating Officer, Chief Financial Officer, Chief People Officer and the Chief Veterinary and Animal Welfare Officer (Executives) are responsible for the general management and leadership of Tasracing, including day-to-day business operations, and are accountable to the Board for achieving the stated objectives. They are also responsible for reporting to the Board on a monthly basis and keeping Directors and Shareholding Ministers apprised of key strategic issues and developments. The Delegations Manual is a document that outlines the matters and financial limits reserved for the Board, Executives and Tasracing employees. The Board also delegates authority to a number of Board committees to assist it in carrying out its functions and to ensure its effective performance in specific areas. Directors sit on Board committees and are accountable to the Board. The Board committees include: Audit and Risk, Asset and Safety, Racing Rules and Policy, HR and Remuneration, Revenue and Board Nominations. They all operate under a Terms of Reference, which is reviewed annually. Members of the Board and the Chief Executive Officer also sit on national boards and committees for Racing Australia, Harness Racing Australia and Greyhounds Australasia, representing Tasracing’s interests in national racing policy, rules and strategy.
PERFORMANCE EVALUATION The Board’s practice is to undertake an annual appraisal of its performance. An internal evaluation of the Board’s performance and the assessment was completed in February 2023. The Executives and employees are also subject to an annual assessment of their performance against agreed objectives and expected behaviours. In December each year, the Chairperson, Chief Executive Officer and Chief Financial Officer are required to attend and respond to questions at the Government Business Scrutiny Committee.
The Company Secretary is accountable directly to the Board, through the Chairperson, on all matters to do with the proper function of the Board.
Tasracing Annual Report 2023 | 50
PRINCIPLE 2: Structure the board to add value
PRINCIPLE 4: Safeguard integrity in corporate reporting
The composition of the Board is set out in the Racing (Tasracing Pty Ltd) Act 2009 (the Act) and consists of seven members made up of a Chairperson and six directors. The directors include three directors who have the skills and experience to enable the Board to achieve its objectives and one Director from each of the Thoroughbred code, Harness code and Greyhound code, who are nominated by participants. Directors are selected and appointed on the basis of their skills and experience and in consideration of diversity and independence, probity and background checks.
The Audit and Risk Committee meets regularly to consider and oversee matters relating to financial reporting, risk management, internal audit and compliance, and report accordingly to the Board. The Committee reviews the annual financial statements and provides recommendations to the Board.
The Chairperson and all Tasracing Directors are independent directors. They are appointed in accordance with Tasracing’s Constitution, the Act and the Guidelines for Tasmanian Government Businesses – Board Appointments. Prior to appointing new directors, the Board Nominations Committee undertakes a skills assessment to determine the skills and experience that may be necessary for the Board to achieve its objectives and strategic plans. The Board maintains a skills matrix which sets out the mix of skills and diversity of the Board. A Director Selection Advisory Panel is then established to consider and nominate candidates for Cabinet approval. Directors have an ongoing requirement to notify the Board of any material personal interest in any matter relating to the affairs of Tasracing and make annual declarations regarding any related party transactions. New directors on the Board undergo a formal induction to enable them to be fully informed and contribute positively to Board deliberations. The induction program is administered by the Chairperson with the support of the Company Secretary.
PRINCIPLE 3: Act ethically and responsibly Our Code of Conduct applies to all our people: the Board, employees, contractors and volunteers. The Code of Conduct sets out the standard of expected behaviour. Tasracing also promotes its values (IRACE) in all its business activities and operations. We have a number of more specific policies that relate to our commitment to comply with our legal obligations and to act ethically and responsibly. These include the right to information policy, public interest disclosure (whistleblower) policy, procurement policy, wagering policy, gifts, benefit and hospitality policy, compliance policy, workplace bullying, discrimination and harassment policy, and related party transactions disclosure policy.
Tasracing’s auditor is the Tasmanian Audit Office, which conducts an audit of the financial statements at the end of each financial year and is invited to attend the annual general meeting each year. Tasracing’s annual reports are tabled in each House of Parliament and are subject to the scrutiny of all members of the Parliament and the community.
PRINCIPLE 5: Make timely and balanced disclosure The Chairperson and the CEO meet regularly with the Shareholding Ministers to provide briefings on key strategic issues and developments. Tasracing also communicates regularly with its industry participants informing them of relevant matters, key projects and activities, as well as listening to their concerns. One avenue of formal communication is through Tasracing’s participation in the racing code industry forums. Tasracing meets quarterly with industry bodies, including the Thoroughbred Advisory Network (TAN), the Harness Industry Forum (HIF) and the Greyhound Reference Group (GRG). We also communicate via a variety of other forums, including email, SMS and online via our website. Details about disclosures made under the Right to Information Act 2009, the Public Interest Disclosures Act 2002 and personal information provisions are set out in page 52.
PRINCIPLE 6: Respect the rights of security holders Tasracing’s Constitution outlines the rights and powers of Shareholding Ministers. Shareholding Ministers can issue various guidelines and directives to Tasracing. The Board has procedures for communication with Shareholding Ministers to ensure they have timely access to information about the Company, including its financial situation, performance, governance and any sensitive matters about which they need to be aware. Tasracing also complies with various reporting obligations as set out in its Constitution, relevant legislation and the Guidelines for Tasmanian Government Businesses.
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| 51
PRINCIPLE 7: Recognise and manage risk
Public Interest Disclosures Act 2002
The Board has established an Audit and Risk Committee which oversees financial, operational and strategic risks and internal controls in accordance with the Boardapproved Risk Management Framework. Material risks are discussed directly with the Shareholding Ministers at the regular scheduled meetings. The Audit and Risk Committee oversees the internal audit function which is outsourced, including the approval of the audit plan, receiving reports of all audits undertaken and monitoring management actions to address the findings. The Audit and Risk Committee oversees this on a regular basis. In 2022/23, the Audit and Risk Committee held five meetings.
Tasracing recognises the value of transparency, accountability and supports disclosures that reveal improper or corrupt conduct or detrimental actions of Tasracing’s members, officers and employees in accordance with the Public Interest Disclosures Act 2002 (PID Act).
PRINCIPLE 8: Remunerate fairly and responsibly The Board has established an HR & Remuneration Committee to oversee remuneration practices and policies in relation to directors, executives and other employees of the Company. The remuneration policy is designed to attract and retain high calibre employees and to align the interests of shareholders and stakeholders for value creation. The HR & Remuneration Committee meets quarterly to discharge these duties. Tasracing adheres to the Treasury Guidelines for Executive and Board Remuneration. Director fees are set by the Tasmanian Government under the Director and Executive Remuneration Guidelines. Remuneration levels are reviewed annually and any increases are benchmarked against independent data.
Tasracing has adopted the Ombudsman’s Model Procedures to achieve the objectives of the PID Act. Tasracing’s Whistleblower Policy includes the Ombudsman’s Model Procedures and incorporates the requirements regarding whistleblowing under the Corporations Act 2001 (Cth) (Corporations Act). This policy is available on our website tasracingcorporate.com.au.
Right to Information Act 2009 Tasracing understands and appreciates the need to make information readily available to the public and is committed to the objectives of the Right to Information Act 2009 (Tas) (RTI Act). Tasracing routinely publishes information that it considers to be of interest to the public via its website and social media. Where information is not disclosed but a request is made for provision of that information, Tasracing adheres to the requirements and processes established by RTI Act. In accordance with the RTI Act, the following disclosures were provided for 2022/23 Right to Information Disclosures Number of applications for assessed disclosure received
6
Number of applications for assessed disclosure where information was disclosed in full
1
Number of applications for assessed disclosure refused and the basis for refusal
0
LEGISLATIVE REPORTING OBLIGATIONS
Number of applications for assessed disclosure where it related to exempt information and the basis for the exemption
51
Number of applications for internal review and the outcome of those reviews
0
Tasracing is committed to complying with all relevant legislative, regulatory and business obligations, including compliance with the Treasurer’s Instructions and Guidelines for Tasmanian Government Businesses.
Number of applications for external (Ombudsman) review and the outcome of those reviews
0
To achieve this commitment, Tasracing’s Compliance Management Framework and Compliance Policy adheres to the AS ISO 19600:2015 Compliance management systems – Guidelines to:
Personal information protection
The 2022/23 Financial Statements detail the remuneration of directors and executives.
•
maintain the highest standards of integrity as consistent with Tasracing’s Code of Conduct and Values;
•
embed a positive compliance culture; and
•
ensure the compliance framework and policy integrates Tasracing’s governance, risk, legal, financial, business, safety management processes and Tasracing’s corporate plan objectives.
For 5 applications, some information requested was claimed as exempt under s36, s37 and s39 of the RTI Act.
Tasracing is committed to protecting the information it collects, holds and handles by complying with the Personal Information Protection Act 2004 (Tas), Privacy Act 1988 (Cth) and the Australian Privacy Principles. During the financial year no complaints were received and no breaches were recorded under this regime.
Tasracing Annual Report 2023 | 52
Buy local Tasmanian Government Reporting Requirements Purchases from Tasmanian businesses % of purchases from Tasmanian businesses
65%
Value of purchases from Tasmanian businesses
$19.1 million
Purchases from Tasmanian businesses was prepared on a cash basis and does not include prizemoney payments.
Consultancies valued at more than $50,000 (ex GST) Name of Consultant
Location
Description
Period of engagement
Amount
Choose Digital
Perth, WA
Digital marketing advisory services
July 2022 - June 2023
$56,500
Cor Comms
Hobart, TAS
Public relations advisory services
July 2022 - June 2023
$95,838
Deloitte Pty Ltd
Hobart, TAS
Income tax consulting services
July 2022 - June 2023
$68,115
Ekto Investments Pty Ltd
Blackmans Bay, TAS
Human resource consulting
December 2022 - June 2023
$59,500
Murdoch Clarke
Hobart, TAS
Legal services
July 2022 - June 2023
$108,671
Red Jelly
Hobart, TAS
Marketing services
September 2022 - June 2023
$212,613
Sekel Grinberg Judd
Sydney, NSW
Legal services
March 2023 - June 2023
$56,601
University of Technology Sydney
Broadway, NSW Engineering advice
July 2022 - June 2023
$75,000
TOTAL
$732,838
There were 11 consultants engaged for $50,000 or less totalling
$145,929
TOTAL PAYMENTS TO CONSULTANTS
$878,767
ACCOUNTS DUE OR PAID WITHIN EACH YEAR Measure Creditor days
2.81
Number of accounts due for payment
8,895
Number of accounts paid on time
8,738
Amount due for payment
29,493,928
Amount paid on time
28,896,503
Number of payments for interest on overdue accounts
-
Interest paid on overdue accounts
-
Superannuation declaration I, Andrew Jenkins, hereby certify that Tasracing has met its obligations under the Commonwealth’s Superannuation Guarantee (Administration) Act 1992 in respect of any employee who is a member of a complying superannuation scheme to which Tasracing contributes. Signed
Andrew Jenkins Chief Executive Officer
Tasracing Annual Report 2023
| 53
Tasracing Pty Ltd
Annual Financial Report
for the financial year ended 30 June 2023 Contents Directors’ Declaration
55
Directors’ Report
56
Statement of Comprehensive Income
57
Statement of Financial Position
58
Statement of Changes in Equity
59
Statement of Cash Flows
60
Notes to the Financial Statements
61-91
Auditor’s Independence Declaration
92
Independent Auditor’s Report
93
Tasracing Annual Report 2023 | 54
Directors’ Declaration
The directors declare that: (a)
in the directors opinion, there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable;
(b) in the directors opinion, the attached financial statements and notes thereto are in accordance with the Corporations Act 2001, including compliance with Australian Accounting Standards and give a true and fair view of the financial position and performance of the company; (c) the financial statements also comply with International Financial Reporting Standards as disclosed in the General Information note to the Financial Statements. Signed in accordance with a resolution of the directors made pursuant to s.295 (5) of the Corporations Act 2001. On behalf of the Directors G. Phair Chairperson Tasracing Pty Ltd Hobart, 11 August 2023
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Directors’ Report The directors present their report together with the financial report for the year ended 30 June 2023 and the independent auditor’s report thereon.
· Cash decreased to $17.03m (2022:$18.94m) with $5.52m invested in capital works during the year. This cash balance supports the infrastructure plan which includes planned capital investment of $21.24m in FY24.
Environmental regulations The company is not subject to any environmental Directors regulations under a law of the Commonwealth or the State The names of directors of the company in office during or of Tasmania. since the end of the financial year are: Subsequent events G. Phair (Chairperson, non-executive director) There has been no matter or circumstance which has M. Wallace (Deputy Chairperson, non-executive occurred subsequent to the end of the financial year that director) has significantly affected, or may significantly affect, the H. Galloway (Deputy Chairperson, non-executive operations of the company, the results of those operations, director), to 15 December 2022 or the state of affairs of the company in future financial D. Garnier (non-executive director) years. M. Gordon (non-executive director) Future developments N. Grose (non-executive director) Tasracing will progress an extensive capital works program S. Jacobson (non-executive director), from across the State including the Raceday amenities building 15 December 2022 and horse pool at the Ladbrokes All Weather Spreyton race S. Old (non-executive director), from 15 December 2022 course and the North-West Tracks project at Devonport. Animal welfare will continue to be a focus with ongoing Principal activities enhancement of the Off The Track program, the Equine The principal activities during the course of the financial Code of Practice and other programs and initiatives. The year were the administration, oversight and funding of GAP facility at Mangalore will be further developed with racing in Tasmania. kennel expansions and enhanced visitor and administration Review of operations facilities. For the year ended 30 June 2023, the company recorded a Tasracing is committed to the supporting the Government’s profit before tax of $399,035 (2022: profit of $4,866,895 ). actions in response to the Review of the Racing Regulation No dividends were paid to members during the year (2022: Act 2004. While it is too early in the process to be specific Nil). The company had no options or unissued shares during in terms of detail, Tasracing notes the integration process is the current or previous year. expected to impact on employees, administration processes, There were no significant change in the state of affairs of IT systems, general culture and financial projections. the company during the financial year. Indemnification of officers and auditors Significant changes in the current reporting period During the financial year the company paid a premium The financial performance of Tasracing has been particularly of $177,905 (2022: 105,618) in respect of insurance for affected by the following material items during the year directors and officers liability. ended 30 June 2023: The company has not otherwise, during or since the end of · Racefield revenue decreased by $1.07m to $24.13m the financial year, indemnified or agreed to indemnify an (2022: $25.20m) as the market settles from the COVID officer or auditor of the company against a liability incurred related highs and continued economic pressure. by such an officer or auditor. · Other Racing Revenue decreased $1.28m to $1.12m Auditor’s independence declaration primarily due to one off benefits in FY22 from vacating the The auditor’s independence declaration is included on page Devonport Showgrounds site in March 2022. 92 of the financial statements. · Interest revenue increased $1.06m to $1.14m (2022: Signed in accordance with a resolution of the Board of $0.08m) due to interest rate increases during the year. Directors: · Code funding increased by $4.88m (15.7%) to $35.92m including Stakes expenditure to $30.76m (2022: $26.78m). · Employee benefits expense increased 3.6% to $9.77m (2022: $9.43m). · Sales and marketing expenses declined $0.49m to $1.80m (2022:$2.29m) due to one off Corporate Plan initiatives Mr Gene Phair undertaken in FY22 not being continued into FY23. Chairperson 11 August 2023
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Statement of Comprehensive Income for the year ended 30 June 2023
Note 2023 2022 $ $ Revenue and Other Income Racing revenue
A1
26,469,669
28,812,430
Government funding
A2
33,920,434
32,162,486
Point of Consumption Tax funding
7,097,190
6,829,619
Interest revenue
A3
1,138,779
84,201
Total Revenue and Other Income
68,626,072
67,888,736
Expenses Prizemoney and industry funding
A4
39,919,564
35,094,860
Raceday and racing expenses
A5
7,626,461
7,355,714
Depreciation and amortisation expenses
A6
4,909,506
4,952,856
Sales and marketing expenses
A7
1,795,571
2,288,351
Employee benefits expenses
A8
9,773,688
9,432,071
Finance and leasing costs
A9
664,349
671,494
Other expenses
A10
3,537,898
3,226,495
Total Expenses
68,227,037
63,021,841
Profit/(Loss) before tax
399,035
4,866,895
Income tax benefit/(expense)
A12
(103,073)
(1,076,169)
Profit/(Loss) for the year after tax
295,962
3,790,726
Actuarial gain/(loss) on defined benefit plan
A8
179,000
625,000
Income tax on other comprehensive income
A12
(53,700)
(187,500)
TOTAL COMPREHENSIVE PROFIT/(LOSS) FOR THE YEAR
421,262
4,228,226
This statement should be read in conjunction with the accompanying notes.
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Statement of Financial Position for the year ended 30 June 2023
Note 2023 2022 $ $ Current Assets
Cash and cash equivalents B1 (a) 17,027,961 18,937,967 Trade and other receivables B2 2,293,725 2,133,486 Prepayments 1,194,565 753,652 Total Current Assets 20,516,251 21,825,105
Non-Current Assets Property, plant and equipment B3 47,261,447 45,944,567 Intangible assets B4 251,001 315,943 Other financial assets B5 94,507 94,507 Right-of-Use assets B10 (a) 1,504,067 1,339,431 Deferred tax assets A12 (c) 156,774 Total Non-Current Assets 49,111,022 47,851,222 Total Assets 69,627,273 69,676,327 Current Liabilities Trade and other payables B6 5,109,993 5,204,416 Borrowings B7 932,971 886,254 Other financial liabilities B8 213,404 200,578 Provisions B9 1,842,141 1,888,860 Lease liabilities B10 (b) 461,920 320,909 Total Current Liabilities 8,560,429 8,501,017 Non-Current Liabilities Borrowings B7 4,460,448 5,393,419 Provisions B9 2,399,465 2,496,205 Lease liabilities B10 (b) 1,000,402 1,000,419 Total Non-Current Liabilities 7,860,315 8,890,043 Total Liabilities 16,420,744 17,391,060 Net Assets 53,206,529 52,285,267 Equity Contributed equity B11 64,464,911 63,964,911 Accumulated losses B12 (11,258,382) (11,679,644) Total Equity 53,206,529 52,285,267
This statement should be read in conjunction with the accompanying notes.
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Statement of Changes in Equity for the year ended 30 June 2023 Note Contributed Equity $
Accumulated Losses $
Total $
Balance as at 30 June 2021 60,714,911 (15,907,870) 44,807,041 Equity contribution B11 3,250,000 3,250,000 Profit /(Loss) for the year B12 3,790,726 3,790,726 Actuarial gain/(loss) on defined benefit plan B12 625,000 625,000 Income tax on other comprehensive income B12 (187,500) (187,500) Total Comprehensive Income for the year 4,228,226 4,228,226 Balance as at 30 June 2022 63,964,911 (11,679,644) 52,285,267 Equity contribution B11 500,000 500,000 Profit /(Loss) for the year B12 295,962 295,962 Actuarial gain/(loss) on defined benefit plan B12 179,000 179,000 Income tax on other comprehensive income B12 (53,700) (53,700) Total Comprehensive Income for the year 421,262 421,262 Balance as at 30 June 2023 64,464,911 (11,258,382) 53,206,529
This statement should be read in conjunction with the accompanying notes.
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Statement of Cash Flows for the year ended 30 June 2023
Note 2023 2022 $ $ Cash Flows from Operating Activities Receipts from customers 70,841,270 70,275,135 Payments to suppliers & employees (67,028,709) (58,274,436) Interest received 1,053,196 70,763 Interest and other costs of finance paid (359,786) (476,476) Net Cash provided by Operating Activities B1 (b) 4,505,971 11,594,986 Cash Flows from Investing Activities Proceeds from disposal of non-current assets 6,898 Payments for non-current assets (5,518,789) (3,479,497) Net Cash used in Investing Activities (5,518,789) (3,472,599) Cash Flows from Financing Activities Repayment of borrowings B1 (c) (886,254) (846,683) Equity contribution B11 500,000 3,250,000 Lease payments B1 (c) (510,934) (495,818) Net Cash provided by Financing Activities (897,188) 1,907,499 Net Increase/(Decrease) in Cash and Cash Equivalents (1,910,006) 10,029,886 Cash and Cash Equivalents at the beginning of the year 18,937,967 8,908,081 Cash and Cash Equivalents at end of the year B1 (a) 17,027,961 18,937,967
This statement should be read in conjunction with the accompanying notes.
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Notes to the Financial Statements for the year ended 30 June 2023
GENERAL INFORMATION Tasracing Pty Ltd (Tasracing) was incorporated on 1 July 2009 and is domiciled in Tasmania, Australia. Tasracing is a state owned company. Tasracing was established by the Racing (Tasracing Pty Ltd) Act 2009. The Principal Act is the Racing Regulation Act 2004. The responsible Minister is the Minister for Racing. Section 11 of the Racing Regulation Act 2004 sets out Tasracing’s responsibilities in detail.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Judgements and estimates which are material to the financial statements are found in the following notes:
Asset useful lives Tasracing’s principal activity is the administration, oversight Impairment review of property, and funding of the three codes of racing in Tasmania. plant and equipment Tasracing’s registered office and principal place of business B9 Employee entitlements B9 TASBRED Thoroughbred Breeding is 6 Goodwood Road, Glenorchy TAS 7010. Incentive Scheme Statement of compliance B9 Defined benefit superannuation These financial statements are general purpose financial fund obligations statements which have been prepared in accordance with the Corporations Act 2001, Australian Accounting Standards and Interpretations and comply with other requirements of law. Compliance with Australian Accounting Standards ensures that the financial statements and notes of the company comply with International Financial Reporting Standards (“IFRS”).
Note A6 B3/B4
65 71 74 74 77
Other accounting policies Significant other accounting policies that summarise the measurement basis used and are relevant to an understanding of the financial statements are provided throughout the notes to the financial statements.
Notes to the financial statements The financial report was authorised for issue by the directors The notes have been grouped into key themes to make the on 11 August 2023. report easier to read and more relevant for the user. These Basis of preparation themes are: · Operations and Performance The financial report has been prepared on the basis of · Financial Position historical cost and on a going concern basis. Historical cost is · Financing and Funding based on the fair values of the consideration given in exchange · Other for assets. All amounts are presented in Australian dollars, unless otherwise noted. Unless otherwise stated, all accounting policies are consistent with those applied in the prior year. Where appropriate, comparative figures have been amended to accord with current presentation, and disclosure has been made of any material changes to comparatives. Some balances included in provisions have been reclassified to trade and other payables as there is no or limited uncertainty regarding the amount or timing of the payment to settle the liability. The comparative balances have been amended to accord with the change in classification. For the purposes of preparing the financial statements, Tasracing is a for-profit entity. Critical accounting judgements and key sources of estimation uncertainty. In the application of Tasracing’s accounting policies, management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
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OPERATIONS AND PERFORMANCE REVENUE
2023 2022 $ $ A1 Racing Revenue Racefield revenue 24,127,987 25,197,483 Sponsorship income 1,013,327 1,014,590 Rental income 207,673 198,033 Other racing income 1,120,682 2,402,324 26,469,669 28,812,430
Accounting policy Revenue Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated customer returns, rebates and other similar allowances. Tasracing’s main source of income is in the form of state government funding via appropriation from a funding deed. Rental income Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Contingent rentals arising under operating leases are recognised as income in a manner consistent with the basis on which they are determined. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight-line basis over the lease term. Racing revenue from contracts with customers Racefield revenue 24,127,987 25,197,483 Magic Millions income 133,665 112,335 Sponsorship and digital revenue 1,001,668 1,095,285 Total revenue from contracts with customers 25,263,320 26,405,103
Timing of revenue recognition Goods transferred at a point in time 25,263,320 26,405,103 Services transferred over time Total revenue from contracts with customers 25,263,320 26,405,103
Performance obligations Information about Tasracing’s performance obligations are summarised below: Racefield Revenue The performance obligation is satisfied as races are run within Tasmania. Racefield Revenues are derived from wagering on races held in Tasmania. These contracts have been accounted for as a group. Tasracing recognises racefield revenue when it can be reliably measured. The Wagering Operator is required to pay racefield fees within 14 days of the prior month end. Magic Millions Income The performance obligation is satisfied when the sales are held and the associated race series is complete. Payment is generally due within 30 days. The contract is on an annual basis and is financially completed before the reporting date. Sponsorship and Digital Revenue Sponsorship income is earned from contracts with a number of parties with separately identifiable performance obligations, such as naming rights to racetracks, specific races and rights to provide products. Tasracing recognises the revenue as the performance obligations are met for each contract, for example, when a race has been completed or signage installed. Payment terms vary from contract to contract but are financially completed before the reporting date and generally due within 30 days. All remaining performance obligations are expected to be recognised within one year.
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2023 $
2022 $
Annual Industry Funding Grant
33,431,442
31,812,486
Thoroughbred & Harness Breeding Grant
350,000
350,000
Racing Industry Training Initiative Grant
138,992
-
33,920,434
32,162,486
A2 Government Funding
Accounting policy Government Funding Government monies are not recognised until there is reasonable assurance that Tasracing will comply with the conditions attached to them and the grants will be received. Government assistance which does not have conditions attached specifically relating to the operating activities of the company is recognised in the Statement of Comprehensive Income on a systematic basis over the periods in which Tasracing recognises as expenses the related costs for which the grants are intended to compensate. Tasracing is funded by government appropriations provided each year, over a twenty year period from 1 July 2009 and subject to the conditions of a funding deed. A3 Interest Revenue Interest revenue is recognised when it is probable that the economic benefits will flow to Tasracing and the amount of revenue can be measured reliably. Interest revenue is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount on initial recognition.
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EXPENSES 2023 2022 A4 Prizemoney and Industry Funding $ $ Club funding 2,089,160 2,002,347 Code funding 35,917,682 31,035,078 COVID-19 costs & industry support 5,280 231,007 Insurance contribution (recognised as Racing Insurance in Note A5) (250,000) (250,000) Other industry funding 2,018,450 2,076,428 Racing industry training initiative costs 138,992 39,919,564 35,094,860 Code Funding Details about the allocation of funding to each racing code is summarised below: Thoroughbred Harness Greyhound Growth Fund Total 2023 $ $ $ $ $ Stakes 16,425,597 7,801,003 6,534,955 - 30,761,555 Animal welfare contribution* 164,256 78,010 122,132 364,398 Breeding bonuses 600,000 620,110 164,400 1,384,510 Insurance contribution 250,000 3,748 253,748 Payments to jockeys and drivers 1,549,867 617,133 2,167,000 Other code funding** 144,469 325,625 200,085 316,292 986,471 Total 19,134,189 9,441,881 7,025,320 316,292 35,917,682 Thoroughbred Harness Greyhound Growth Fund Total 2022 $ $ $ $ $ Stakes 14,276,370 6,903,737 5,599,286 - 26,779,393 Animal welfare contribution* 142,764 69,037 119,737 331,538 Breeding bonuses 600,000 683,737 159,000 1,442,737 Insurance contribution 250,000 3,441 253,441 Payments to jockeys and drivers 1,333,738 529,287 1,863,025 Other code funding** 315,978 48,966 364,944 Total 16,918,850 8,185,798 5,930,430 - 31,035,078 * Animal welfare contribution from code funding represents only a portion of total animal welfare expenditure, with additional costs recognised in other areas of the business. ** Other code funding may include unspent code funding allocation which is carried forward to future years. The allocation of code funding to stakes and other code specific items is determined annually in consultation with the Thoroughbred Advisory Network, Harness Industry Forum and Greyhound Reference Group.
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2023 2022 A5 Raceday and Racing Expenses $ $ Training and racing facilities 4,519,448 4,513,580 Race day & other racing expenses 2,080,463 1,794,582 Racing insurance 1,026,550 1,047,552 7,626,461 7,355,714 2023 2022 A6 Depreciation and Amortisation Expenses $ $ Racecourse leasehold improvements 3,754,128 3,657,963 Plant and equipment 489,159 464,464 Welfare facilities 31,584 31,255 Intangibles 182,866 317,611 Right-of-Use assets 451,769 481,563 4,909,506 4,952,856 Accounting policy Depreciation and amortisation expenses Depreciation is provided on property, plant and equipment. Depreciation is calculated on a straight-line basis so as to write off the net cost or other revalued amount of each asset over its expected useful life to its estimated residual value. Leasehold improvements are amortised over the period of the lease or estimated useful life, whichever is the shorter, using the straight-line method. The estimated useful lives, residual values and depreciation and amortisation methods are reviewed at the end of each annual reporting period, with the effect of any changes recognised on a prospective basis. The following useful lives are used in the calculation of depreciation and amortisation: Category Term Leasehold improvements term of the lease or life of the asset Welfare facilities 5 to 20 years Plant and equipment 3 to 20 years Racecourse plant and equipment 5 to 20 years Right-of-Use assets term of the lease Website and systems development 3 to 5 years 2023 2022 A7 Sales & Marketing Expenses $ $ Sales 674,140 748,659 Marketing 1,121,431 1,539,692 1,795,571 2,288,351 Due to strong trading conditions during 2022, one-off additional expenditure to promote Corporate Plan initiatives was undertaken in the areas of Sales and Marketing expenses. 2023 2022 A8 Employee Benefit Expense $ $ Recognised in profit/(loss) for the year Wages and salaries 8,037,477 7,838,004 Other associated personnel expenses 654,270 560,767 Contributions to defined contribution superannuation funds 833,108 774,950 Service cost of defined benefit scheme (excludes interest cost) 33,000 54,000 (Decrease)/Increase in liability for annual leave 135,883 135,173 Increase in liability for long service leave 79,950 69,177 9,773,688 9,432,071 Recognised in other comprehensive income for the year Actuarial (losses)/gains in relation to defined benefit obligation (DBO) (see note B9) 239,000 687,000 Actual return on plan assets less interest income in relation to DBO (see note B9) (60,000) (62,000) Total measurement recognised in other comprehensive income 179,000 625,000
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2023 2022 A9 Finance and Leasing Costs $ $ Finance costs Net interest cost in relation to DBO (see note B9) 160,000 117,000 Interest expense 448,512 501,557 608,512 618,557 Short-term leases and leases of low-value assets Occupancy lease rentals - short-term 33,104 12,567 Plant and equipment lease rentals 22,733 40,370 55,837 52,937 Total finance and leasing costs 664,349 671,494
Accounting policy Finance costs Finance costs are expensed as incurred using the effective interest method. Borrowing costs include interest on bank overdrafts, borrowings, leases and unwinding of discounts.
Short-term leases and leases of low-value assets Tasracing has elected not to recognise Right-of-Use assets and lease liabilities for short-term leases i.e. leases with a lease term of 12 months or less and leases of low-value assets when the value of the leased asset when new is $10,000 or less. Tasracing recognises the lease payments associated with these leases as expense on a straight-line basis over the lease term.
A10 Other Expenses 2023 2022 $ $ Insurance 1,282,839 Administration 1,031,963 Impairment losses Loss on disposal of assets 6,527 Digital & IT 1,036,790 Other 179,779 3,537,898
1,049,316 749,793 260,951 22,036 1,068,138 76,261 3,226,495
2022 2021 A11 Remuneration of Auditors $ $ External audit services 60,000 43,190 Internal audit services 47,683 31,009 107,683 74,199 The Company paid $60,000 to the Tasmanian Audit Office in 2023 for the audit of the financial statements. Internal audit services are provided by other third party audit service providers and not the Tasmanian Audit Office.
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TAXATION
2023 2022 $ $ A12 Income Taxes (a) Income tax recognised in profit or loss Tax expense/(income) comprises: Current tax expense/(income) Adjustments recognised in the current year in relation to the current tax of prior years Deferred tax expense/(income) relating to the origination and reversal of temporary differences 103,073 1,076,169 Total tax expense/(income) 103,073 1,076,169 Attributable to: Continuing operations 103,073 1,076,169 103,073 1,076,169 The prima facie income tax expense on pre-tax accounting profit from operations reconciles to the income tax expense in the financial statements as follows: Profit/(loss) from continuing operations 399,035 4,866,895 Profit/(loss) from operations 399,035 4,866,895 Income tax expense calculated at 30% 119,711 1,460,069 Tax break Non-deductible expenses 15,064 13,151 Unused tax losses and tax offsets not recognised as deferred tax assets (31,702) (372,180) Previously unrecognised and unused tax losses and tax offsets now recognised deferred tax assets Other 103,073 1,101,040 (Over)/under provision of income tax in previous year (24,871) 103,073 1,076,169 Current income tax (benefit)/expense recognised in Statement of Comprehensive Income 103,073 1,076,169
The tax rate used in the above reconciliation is the corporate tax rate of 30% payable by Australian corporate entities on taxable profits under Australian tax law. There has been no change in the corporate tax rate when compared with the previous reporting period. (b) Income tax recognised directly in equity The following current and deferred amounts were charged directly to equity during the period: 2023 2022 $ $ Deferred tax: Actuarial movements on defined benefit plans (53,700) (187,500) Deferred tax movement not recognised through equity (53,700) (187,500) (c) Recognised deferred tax balances Deferred tax assets comprise: Temporary differences 7,137,986 6,524,179 Tax losses (revenue) 142,060 822,430 7,280,046 7,346,609 Deferred tax liabilities comprise: Temporary differences 1,480,017 1,358,104 1,480,017 1,358,104 Net deferred tax asset/(liability) 5,800,029 5,988,505
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Taxable and deductible temporary differences arise from the following: 2023
Opening Balance $
Charged to Income $
Charged to Equity $
Closing Balance $
Gross deferred tax liabilities: Prepayments (202,646) (12,356) (215,002) Receivables (4,378) (25,651) (30,029) Intangibles (35,698) 7,161 (28,537) Leases (27,024) (17,750) (44,774) Property, plant and equipment (1,088,358) (73,317) (1,161,675) (1,358,104) (121,913) (1,480,017) Gross deferred tax assets: Provisions 1,315,519 10,663 (53,700) 1,272,482 Property, plant and equipment 4,584,576 372,166 4,956,742 Leases 46,166 8,675 54,841 Payables 577,918 276,003 853,921 Tax losses (revenue) 822,430 (680,370) 142,060 7,346,609 (12,863) (53,700) 7,280,046 Net deferred tax assets: 5,988,505 (134,776) (53,700) 5,800,029 Less unrecognised deferred tax asset Net recognised deferred tax asset
(5,831,731) 156,774
31,702 (103,074)
(53,700)
(5,800,029) -
Attributable to: Continuing operations -
2022
Opening Balance $
Charged to Income $
Charged to Equity $
Closing Balance $
Gross deferred tax liabilities: Prepayments (160,164) (42,482) (202,646) Receivables (324) (4,054) (4,378) Intangibles (1,842) (33,856) (35,698) Leases (28,038) 1,014 (27,024) Property, plant and equipment (938,948) (149,410) (1,088,358) (1,129,316) (228,788) (1,358,104) Gross deferred tax assets: Provisions 1,465,897 37,122 (187,500) 1,315,519 Property, plant and equipment 4,558,460 26,116 4,584,576 Leases 38,642 7,524 46,166 Payables 625,220 (47,302) 577,918 Tax losses (revenue) 2,065,452 (1,243,022) 822,430 8,753,671 (1,219,562) (187,500) 7,346,609 Net deferred tax assets: 7,624,355 (1,448,350) (187,500) 5,988,505 Less unrecognised deferred tax asset (6,203,911) 372,180 (5,831,731) Net recognised deferred tax asset 1,420,444 (1,076,170) (187,500) 156,774
(d) Unrecognised deductible temporary differences and unused tax losses Deductible temporary differences and unused tax losses for which no deferred tax assets have been recognised are 2023 2022 attributable to the following: $ $ Temporary differences 5,800,028 5,831,731 Tax losses – revenue 5,800,028 5,831,731 Accounting policy Income tax equivalent Tasracing as a state owned company is registered under the National Tax Equivalent Regime. Income tax expense represents the sum of the tax currently payable and deferred tax. Tasracing’s five year projections indicate that it is probable that future tax profits will be achieved, therefore, it is considered appropriate to recognise deferred income tax assets. Tasracing Annual Report 2023 | 68
FINANCIAL POSITION CASH FLOW
2023 2022 B1 Cash Flow $ $ (a) Cash and cash equivalents Cash on hand and balances with banks 17,027,961 18,937,967 (b) Reconciliation of profit for the year to net cash flows from operating activities Profit/(Loss) for the year 399,035 4,866,895 Adjustments for: Depreciation and amortisation 4,909,506 4,952,856 (Profit)/loss on disposal of property, plant and equipment 13,444 269,190 Interest charged on lease liabilities 28,917 25,081 (Increase)/decrease in receivables (160,236) (286,378) (Increase)/decrease in prepayments (440,916) (146,890) (Decrease)/increase in creditors, accruals and other financial liabilities (279,320) 1,980,507 Increase/(decrease) in provisions 35,541 (66,275) Net cash from operating activities 4,505,971 11,594,986 (c) Reconciliation of liabilities arising from financing activities Liabilities arising from financing activities are liabilities for which cash flows were, or future cash flows will be, classified in the Statement of Cash Flows as cash flows from financing activities. Borrowings Balance as at 1 July 6,279,673 7,126,356 Changes from financing cash flows: Cash received Cash repayments (886,254) (846,683) Balance as at 30 June 5,393,419 6,279,673 Lease liabilities Balance as at 1 July 1,321,328 1,486,499 Changes from financing cash flows: Cash lease payments (510,934) (495,818) Non-cash lease movement 651,928 330,647 Balance as at 30 June 1,462,322 1,321,328 (d) Financing facilities Credit and Stand By arrangements Credit Cards - amount used 97,000 86,500 - amount unused 13,000 23,500 Facility Limit 110,000 110,000 TASCORP borrowing facilities - amount used 5,393,419 6,279,673 - amount unused 34,760,308 34,760,308 Facility Limit 40,153,727 41,039,981 Accounting policy Cash and cash equivalents Cash comprises cash on hand and demand deposits. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash, which are subject to an insignificant risk of change in value and have a maturity of three months or less at the date of acquisition. Cash flows are included in the Statement of Cash Flows on a gross basis. The GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified within operating cash flows. Tasracing Annual Report 2023 | 69
ASSETS
2023 2022 B2 Trade and Other Receivables $ $ Trade and other receivables 2,199,700 Provision for expected credit loss (6,073) 2,193,627 Interest receivable 100,098 2,293,725
2,124,584 (5,613) 2,118,971 14,515 2,133,486
Reconciliation of movement in expected credit loss Carrying amount at 1 July (5,613) (8,269) Amounts written off during the year
15,294
6,736
Amounts recovered during the year
-
-
(Increase)/decrease in provision recognised in Statement of Comprehensive Income
(4,080)
(4,080)
Carrying amount at 30 June
5,601
(5,613)
Ageing of trade and other receivables At balance date other debtors representing financial assets were past due but not impaired. These amounts relate to a number of independent customers for whom there is no recent history of default. The ageing of Tasracing’s trade and other receivables was: Past due between 31 and 60 days 65,620 34,942 Past due between 61 and 90 days 27,309 18,329 90+ days 30,058 63,669 Balance at end of year 122,987 116,940 Included in the trade and other receivables balance are debtors with a carrying amount of $122,987 (30 June 2022: $116,940) that are past due at the reporting date which Tasracing has not impaired as there has not been a significant change in credit quality and the amounts are still considered recoverable. Tasracing does not hold any collateral over these balances. Many of the long outstanding past due amounts have been lodged with Tasracing’s debt collectors or are on payment arrangements. Accounting Policy Trade and other receivables
Trade receivables that do not contain a significant financing component are measured at amortised cost, which represents their transaction value. Impairment is recognised on an expected credit loss (ECL) basis. When determining whether the credit risk has increased significantly since initial recognition, and when estimating the ECL, Tasracing considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis based on Tasracing’s historical experience, an informed credit assessment and forwardlooking information. Tasracing has established a provision matrix to facilitate the impairment assessment. For receivables the average credit period on these items is 30 days with a large number of smaller debtors reducing the risk. No interest is charged on receivables.
Tasracing Annual Report 2023 | 70
B3 Property, Plant and Equipment (a) Carrying amounts Land At cost Total Racecourse leasehold improvements At cost Less: accumulated depreciation Total
2023 $
2022 $
650,600 650,600
650,600 650,600
84,832,273 (45,039,128) 39,793,145
81,119,575 (41,292,620) 39,826,955
Plant & equipment At cost 8,330,563 7,562,491 Less: accumulated depreciation (5,345,517) (4,853,416) Total 2,985,046 2,709,075 Welfare facilities At cost Less: accumulated depreciation Total
991,829 (104,625) 887,204
991,829 (73,041) 918,788
Work in progress At cost 2,945,452 1,839,149 Total 2,945,452 1,839,149 Total Property, plant and equipment 47,261,447 45,944,567
(b) Reconciliation of movements in carrying amounts
Land at cost
Racecourse Leasehold Improvements at cost
Plant & Equipment at cost
Welfare facilities at cost
Work in progress at cost
TOTAL
$
$
$
$
$
$
650,600
39,826,955
2,709,075
918,788
1,839,149
45,944,567
Additions
-
-
4,752
-
5,711,762
5,716,514
Disposals
-
-
(6,838)
-
-
(6,838)
Impairment losses
-
-
-
-
-
-
Net transfers
-
3,720,318
767,217
-
(4,605,459)
(117,924)
Depreciation
-
(3,754,128)
(489,160)
(31,584)
-
(4,274,872)
650,600
39,793,145
2,985,046
887,204
2,945,452
47,261,447
Land at cost
Racecourse Leasehold Improvements at cost
Plant & Equipment at cost
Welfare facilities at cost
Work in progress at cost
TOTAL
$
$
$
$
$
$
2023 Carrying amount at 1 July
Carrying amount at 30 June
2022 Carrying amount at 1 July
650,600
42,857,446
2,190,600
939,229
223,882
46,861,757
Additions
-
-
10,397
-
3,511,033
3,521,430
Disposals
-
(6,343)
(10,465)
-
-
(16,808)
Impairment losses
-
-
-
-
(258,890)
(258,890)
Net transfers
-
633,815
983,007
10,814
(1,636,876)
(9,240)
Depreciation Carrying amount at 30 June
-
(3,657,963)
(464,464)
(31,255)
-
(4,153,682)
650,600
39,826,955
2,709,075
918,788
1,839,149
45,944,567
Tasracing Annual Report 2023
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Accounting policy
Property, plant and equipment Property, plant and equipment and leasehold improvements are stated at cost less accumulated depreciation, amortisation and impairment. Cost includes expenditure that is directly attributable to the acquisition or construction of the item. In the event that settlement of all or part of the purchase consideration is deferred, cost is determined by discounting the amounts payable in the future to their present value as at the date of acquisition. The asset capitalisation threshold adopted by Tasracing is $1,000. Assets valued at less than $1,000 are charged to the Statement of Comprehensive Income in the year of purchase (other than where they form part of a group of similar items which are material in total). The gain or loss arising on disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the Statement of Comprehensive Income. 2023 2022 B4 Intangible Assets $ $ (a) Carrying amounts Website and software At cost
2,488,496
2,370,572
Less: accumulated amortisation
(2,237,495)
(2,054,629)
Total
251,001
315,943
Carrying amount at 1 July
315,943
624,314
Additions from work in progress
117,924
9,240
Amortisation
(182,866)
(317,611)
Carrying amount at 30 June
251,001
315,943
Accounting policy Intangible assets Intangible assets with finite lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised on a straight line basis over their estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of each annual reporting period, with the effect of any changes in estimates being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses. An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset are recognised in the Statement of Comprehensive Income when the asset is derecognised. 2023 2022 B5
Other Financial Assets
$
$
Ordinary share investment
94,507
94,507
94,507
94,507
Accounting Policy Ordinary share investment Tasracing purchased 50 ordinary shares (5% of the total number of issued shares) in Racing Information Services Enterprises Pty Ltd (RISE). As Tasracing’s investment in RISE is held for long-term strategic purposes, the Company has elected under AASB 9: Financial Instruments to irrevocably classify this equity investment as designated at fair value through other comprehensive income. Subsequent changes in fair value on designated investments in equity instruments are recognised in other comprehensive income and not reclassified through the profit or loss when derecognised. The purchase was approved by the Shareholding Minister.
Tasracing Annual Report 2023 | 72
LIABILITIES B6
Trade and Other Payables
Trade and others payables - unsecured Animal welfare funding carried forward Code funding carried forward
2023
2022
$
$
3,185,175
4,203,681
886,657
611,830
1,038,161
388,905
5,109,993
5,204,416
Accounting policy Trade and other payables Trade payables and accruals principally comprise amounts outstanding for trade purchases and ongoing costs. The average credit period taken for trade purchases is 3 days. No interest is charged on the trade payables. Tasracing has financial risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms. Animal welfare funding carried forward Tasracing has a constructive obligation to the Shareholders to utilise unspent allocated animal welfare code funding in future years. Code funding carried forward Tasracing has a constructive obligation to the racing industry based on an established pattern of past practice to utilise unspent funding allocated to code funding in future years. The allocation of code funding to stakes and other code specific items is determined annually in consultation with the Thoroughbred Advisory Network, Harness Industry Forum and Greyhound Reference Group.
B7
Borrowings
2023
2022
$
$
This note provides information about the contractual terms of Tasracing’s interest bearing loans and borrowings. For more information about the company’s exposure to interest rate risk, see note C1 (c). Current Credit foncier loan 1 - operating loan
(i)
255,808
247,936
Credit foncier loan 2 - capital loan
(ii)
677,163
638,318
932,971
886,254
536,237
792,045
Non-Current Credit foncier loan 1 - operating loan
(i)
Credit foncier loan 2 - capital loan
(ii)
3,924,211
4,601,374
4,460,448
5,393,419
All loans are transacted through the Tasmanian Public Finance Corporation (TASCORP). The funding deed provides that the State Government may provide debt support in the form of principal and interest repayments subject to the conditions of the deed. This support applies to both of the credit foncier loans. (i) C redit Foncier 1 - operating loan - principal and interest is payable every 6 months. Effective 30 June 2016, interest is 3.15% fixed until maturity on 30 June 2026. (ii) C redit Foncier 2 - capital loan - principal and interest is payable every 6 months. The option to extend the maturity date of the loan to 28 June 2029 was exercised on 28 June 2023. Interest was fixed for ten years at 5.20% per annum to 28 June 2023 and fixed at 4.90% per annum thereafter. Previously, the State government provided support for principal and interest repayments. The principal support component was treated as an equity contribution.
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Under the funding deed Tasracing has a $40 million debt facility with the Tasmanian Public Finance Corporation. The Treasurer provided explicit support to the Tasmanian Public Finance Corporation for Tasracing’s borrowings as part of the Government’s response to the COVID-19 pandemic. This support is limited to a maximum borrowing limit of $18.7 million.
2023 2022 B8 Other Financial Liabilities $ $ Rental bonds 213,404 200,578 213,404 200,578 Accounting Policy Rental bonds Rental bonds are recognised as a liability in the financial statements when the Company receives the funds from the lessee and has a legal obligation to refund the amount at the end of the lease term, subject to the terms and conditions of the lease agreement. The rental bonds are initially measured at their fair value, which is typically equal to the amount received from the lessee.
B9
2023 $
2022 $
Annual leave
791,329
788,950
Long service leave
308,643
297,122
Provisions
Current Employee
Superannuation - defined benefits
51,000
67,000
1,150,972
1,153,072
Provision for TASBRED Scheme - Thoroughbred
323,408
566,508
Workers compensation insurance fund reserve
367,761
169,280
Total other current provisions
691,169
735,788
1,842,141
1,888,860
318,465
347,205
2,081,000
2,149,000
Total Non Current provisions
2,399,465
2,496,205
Total provisions
4,241,606
4,385,065
Total current employee provisions
Total current provisions
Non-Current Employee Long service leave Superannuation - defined benefits
Reconciliation of movements in carrying amounts of other current provisions Provision for TASBRED Workers compensation
Total
Scheme - Thoroughbred
insurance fund reserve
$
$
$
566,508
169,280
735,788
Additional provisions
1,066,500
198,481
1,264,981
Amounts used
(1,309,600)
-
(1,309,600)
323,408
367,761
691,169
2023 Carrying amount at 1 July
Carrying amount at 30 June
Tasracing Annual Report 2023 | 74
Accounting policy Provisions Provisions are recognised when Tasracing has a present obligation (legal or constructive) as a result of a past event, it is probable that the company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows. When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably. TASBRED Thoroughbred Breeding Incentive Scheme Tasracing operates a Thoroughbred breeders and owners incentive scheme for eligible yearlings. The scheme is funded by government grants and industry funding while costs are incurred as horses meet the relevant criteria. Tasracing has a provision representing the excess of funding over recognised costs. This provision provides for future costs of the scheme. Workers Compensation Insurance Policy Taracing has a workers compensation insurance policy for the year ending 31 March 2024. The premium varies between a minimum of $750,000 and a maximum of $2,592,341. At 30 June 2023, the injuries incurred in the previous insurance years were greater than the minimum premium. Tasracing is exposed to a potential cost of up to $1,842,341 in the current insurance year being the difference between the maximum and minimum premiums and this is dependant upon the nature and extent of the injuries that occur. As an insurance year remains open for three years, injuries that occurred in prior years can impact on the current financial years expense recorded in the Statement of Comprehensive Income. Employee benefit disclosures Accounting Policy A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave and long service leave, when it is probable that settlement will be required and they are capable of being measured reliably. Liabilities recognised in respect of employee benefits expected to be settled within 12 months, are measured at their nominal values using the remuneration rate expected to apply at the time of settlement. Liabilities recognised in respect of employee benefits which are not expected to be settled within 12 months are measured as the present value of the estimated future cash outflows to be made by Tasracing in respect of services provided by employees up to the reporting date. Classification of employee benefits An employee benefit liability is classified as a current liability if there is no unconditional right to defer settlement of the liability for at least 12 months after the end of the period. This would include all annual leave and unconditional long service leave entitlements. Defined contribution plans Contributions to defined contribution superannuation plans are expensed when employees have rendered service entitling them to the contributions. Defined benefit plans For defined benefit superannuation plans, the cost of providing benefits is determined using the projected unit credit method, with actuarial valuations being carried out at each reporting date. Actuarial gains and losses are recognised in full in the Statement of Comprehensive Income in the period in which they occur. Past service cost is recognised immediately to the extent that the benefits are already vested, and otherwise amortised on a straight-line basis over the average period until the benefits become vested.
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The defined benefit obligation recognised in the Statement of Financial Position represents the present value of the defined benefit obligation, adjusted for unrecognised actuarial gains and losses and unrecognised past service cost, and as reduced by the fair value of the plan assets. Any asset resulting from this calculation is limited to unrecognised actuarial losses and past service cost, plus the present value of available refunds and reductions in future contributions to the plan. Liability for defined benefit obligation Members of the Contributory Scheme receive lump sum benefits on resignation and lump sum or pension benefits on retirement, death or invalidity. The Contributory Scheme is closed to new members. There are a number of risks to which the Scheme exposes Tasracing. The more significant risks relating to defined benefits are: Investment risk- the risk that investment returns will be lower than assumed and Tasracing will need to increase contributions to offset this shortfall over the long term. Salary growth risk - the risk that wages or salaries (on which future benefit amounts will be based) will rise more rapidly than assumed, increasing defined benefit amounts and the associated employer contributions over the long term. Inflation risk - the risk that inflation is higher than anticipated, increasing pension payments and the associated employer contributions over the long term. Benefits options risk - the risk that a greater proportion of members who joined prior to 1 July 1994 will elect the pension option, which is generally more costly than the alternative lump sum option. Pensioner mortality risk - the risk that pensioner mortality will be lower than expected, resulting in pensions being paid for a longer period. Legislative risk - the risk that legislation changes could be made which increase the cost of providing the defined benefits. There were no Scheme amendments affecting the defined benefits payable, curtailments or settlements during the year.
Tasracing Annual Report 2023 | 76
2023 $
2022 $
2,502,000
2,627,000
Reconciliation of the net defined benefit liability/(asset) Defined benefit obligation Fair value of plan assets
(370,000)
(411,000)
Net superannuation liability/(asset)
2,132,000
2,216,000
Current net liability
51,000
67,000
Non-current net liability
2,081,000
2,149,000
Total liability
2,132,000
2,216,000
Fair value of plan assets at the beginning of the year
411,000
464,000
Interest income
22,000
15,000
Actual return on plan assets less interest income
(60,000)
(62,000)
Employer contributions
54,000
61,000
Reconciliation of the fair value of scheme assets
Contributions by plan participants
17,000
16,000
Benefits paid
(74,000)
(83,000)
Fair value of plan assets at the end of the year
370,000
411,000
2,627,000
3,225,000
Current service cost
33,000
54,000
Interest cost
138,000
102,000
Contributions by plan participants
17,000
16,000
Actuarial (gains)/losses arising from changes in demographic assumptions
8,000
-
Actuarial (gains)/losses arising from changes in financial assumptions
(88,000)
(633,000)
Actuarial (gains)/losses arising from liability experience
(159,000)
(54,000)
Benefits paid
(74,000)
(83,000)
2,502,000
2,627,000
Reconciliation of the defined benefit obligation Present value of defined benefit obligations at beginning of the year
Present value of defined benefit obligations at end of the year The asset ceiling has no impact on the net defined benefit liability/(asset).
Fair Value of Scheme Assets As at 30 June 2023
Asset Category
Total
Quoted prices in active Significant observable markets for identical assets inputs - Level 1 - Level 2 ($’000) ($’000)
Unobservable inputs - Level 3 ($’000)
Cash deposits
-
-
-
-
Australian equities
57
-
57
-
International equities
70
-
70
-
Infrastructure
58
-
14
44
Diversified fixed interest
88
-
88
-
Property
70
-
7
63
Alternative investments
27
-
27
-
Total
370
-
263
107
^Estimated based on assets allocated to Tasracing as at 30 June 2023 and asset allocation of the RBF Scheme as at 30 June 2022. Tasracing Annual Report 2023
| 77
Fair Value of Entities Own Financial Instruments The fair value of Scheme assets includes no amounts relating to: - any of Tasracing’s own financial instruments - any property occupied by, or other assets used by Tasracing Assets are not held separately for each reporting entity but are held for the Fund as a whole. The fair value of Scheme assets for each reporting entity was estimated by allocating the total Fund assets in proportion to the value of each reporting entity’s fund liabilities, calculated using the assumptions outlined in this report, with the exception of the discount rate. For the purposes of allocating assets to each reporting entity, we have used the Government Bond yield of 3.85%, in order to be consistent with the allocation of assets reported to the Department of Treasury and Finance. Significant actuarial assumptions at the reporting date Financial year ended
30 June 2023
30 June 2022
Discount rate (active members)
5.35% p.a
3.20% p.a
Discount rate (pensioners)
5.35% p.a
3.20% p.a
5.50% for 22/23 then 3.50% p.a
3.00% p.a
Expected salary increase rate
3.50% p.a
3.00% p.a
Expected pension increase rate
5.50% for 22/23 3.25% for 23/24 then 2.50% p.a
2.25% p.a
Financial year ended
30 June 2023
30 June 2022
Discount rate (active members)
5.70% p.a
5.35% p.a
Discount rate (pensioners)
5.70% p.a
5.35% p.a
Expected salary increase rate
3.50% p.a
3.50% p.a
Expected rate of increase of compulsory preserved amounts
3.50% p.a
5.50% for 22/23 then 3.50% p.a
3.50% for 23/24 3.50% for 24/25 3.0% for 25/26 then 2.50% p.a
5.50% for 22/23 3.25% for 23/24 then 2.50% p.a
Assumptions to determine defined benefit cost and start of year DBO
Expected rate of increase of compulsory preserved amounts
Assumptions to determine end of year DBO
Expected pension increase rate
Sensitivity analysis The defined benefit obligation as at 30 June 2023 under several scenarios is presented below. Scenario A and B relate to discount rate sensitivity. Scenario C and D relate to expected pension increase rate sensitivity. Base Case Scenario A Scenario B Scenario C Scenario D -1.0% p.a +1.0% p.a -1.0% p.a +1.0% p.a discount rate discount rate pension pension increase rate increase rate Discount rate (% p.a)
5.70%
4.70%
6.70%
5.70%
5.70%
Pension increase rate (% p.a)
2.50%
2.50%
2.50%
1.50%
3.50%
Defined benefit obligation (A$’000s)
2,502
2,824
2,238
2,339
2,708
The defined benefit obligation has been recalculated by changing the assumptions as outlined above, whilst retaining all other assumptions. The pension increase assumptions in the above table are long term pension increase assumptions. Higher rates are assumed for the next two years. In Scenario C & D, both the short term and long term assumptions have been adjusted. Asset-Liability matching strategies We are not aware of any asset and liability matching strategies adopted by the Fund. Funding arrangements The employer contributes a percentage of each lump sum or pension benefit payment. This percentage may be amended by the Minister on the advice of the Actuary.
Tasracing Annual Report 2023 | 78
Expected Contributions Financial year ending
30 June 2024 ($’000)
Expected employer contributions
51
Maturity profile of defined benefit obligation The weighted average duration of the defined benefit obligation for Tasracing is 12.3 years. B10 Leases 2023 2022 $ $ (a) Right-of-Use Assets Carrying amounts Racecourse leaseholds 800,009 928,812 Motor vehicles Total right-of-use assets at 30 June
704,058
410,619
1,504,067
1,339,431
Reconciliation of movements in carrying amounts Carrying amount at 1 July
1,339,431
1,509,026
Additions
830,633
352,280
Disposals
(214,228)
(40,312)
Amortisation expense
(451,769)
(481,563)
Carrying amount at 30 June
1,504,067
1,339,431
Accounting Policy Right-of-Use assets Tasracing has lease contracts for various racecourses and motor vehicles used in its operations. Leases of racecourses generally have lease terms between 10 and 50 years, while motor vehicles and other equipment generally have lease terms between 3 and 5 years. There are several lease contracts that include extension and termination options. (b) Lease Liabilities Reconciliation of movements in carrying amounts Carrying amount at 1 July
1,321,328
1,486,485
Additions
830,633
352,280
Disposals
(207,622)
(64,335)
Interest
28,918
25,081
Payments and accruals
(510,935)
(478,183)
Total lease liabilities at 30 June
1,462,322
1,321,328
Current
461,920
320,909
Non Current
1,000,402
1,000,419
Total lease liabilities at 30 June
1,462,322
1,321,328
Year 1
461,920
320,909
Year 2
362,979
290,484
Year 3
222,135
158,419
Ongoing
415,288
551,516
1,462,322
1,321,328
The maturity analysis of lease liabilities is as follows: Present value of future minimum lease payments
Total
Tasracing Annual Report 2023
| 79
Accounting Policy Lease liabilities At the commencement date of the lease, Tasracing recognises lease liabilities measured at the present value of lease payments to be made over the lease term, unless the short-term or low-value exemption is applied. In calculating the present value of lease payments, Tasracing uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g. changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset. Short-term leases and leases of low-value assets Tasracing has elected not to recognise Right-of-Use assets and lease liabilities for short-term leases i.e. leases with a lease term of 12 months or less and leases of low-value assets i.e., when the value of the leased asset when new is $10,000 or less. Tasracing recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.
EQUITY 2023
2022
$
$
63,964,911
60,714,911
Equity contribution - Treasury
500,000
3,250,000
Balance at the end of the year
64,464,911
63,964,911
B11 Contributed Equity Balance at the beginning of the year
Fully paid shares (30 June 2023 and 30 June 2022: 2) Tasracing is a state owned company. Tasracing’s share capital is held on behalf of the State of Tasmania by the Minister for Racing and the Treasurer. AASB Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities requires transfers in the nature of equity contributions, other than as a result of a restructure of administrative arrangements, to be designated by the Government (the owner) as contributions by owners (at the time of, or prior to, transfer) before such transfers can be recognised as equity contributions. Capital appropriations have been designated as contributions by owners by Treasurer’s Instruction FC-16 and have been credited directly as equit contributions.
B12 Accumulated Losses Balance at the beginning of the year Net Profit/(Loss)
2023
2022
$
$
(11,679,644)
(15,907,870)
295,962
3,790,726
Other comprehensive income
179,000
625,000
Income tax relating to components of other comprehensive income
(53,700)
(187,500)
(11,258,382)
(11,679,644)
Balance at the end of the year
Tasracing Annual Report 2023 | 80
FINANCING AND FUNDING FINANCIAL INSTRUMENTS
C1(a) Capital Risk Management Tasracing manages its capital to ensure that it will be able to continue as a going concern through the optimisation of the debt and equity balance. The capital structure of Tasracing consists of debt, which includes the borrowings disclosed in note B7, cash and cash equivalents and equity attributable to equity holders of the company, comprising contributed equity and retained earnings as disclosed in notes B11 and B12 respectively. Tasracing’s policy is to endeavour to fund current and future activities through adequately maintained cash reserves. Where required Tasracing borrows through the Tasmanian Public Finance Corporation, TASCORP. 2023 2022 (b) Categories of Financial Instruments $ $ Financial assets Cash and cash equivalents
17,027,961
18,937,967
Financial assets - at amortised cost
2,293,725
2,133,486
Other financial assets - at amortised cost
94,507
94,507
19,416,193
21,165,960
Trade and other payables
5,109,993
5,204,416
Other financial liabilities
213,404
200,578
5,393,419
6,279,673
10,716,816
11,684,667
Financial liabilities Held at amortised cost:
Borrowings
Estimation of fair values The directors consider that the carrying amount of financial assets and liabilities approximates to their fair value, except for Borrowings which have a fair value of $5,366,683 (2022, $6,321,226). The following summarises the major methods and assumptions used in estimating the fair values of financial instruments reflected in the table. (i) Borrowings Fair value is calculated based on discounted expected future principal and interest cash flows. (ii) Trade and other receivables / payables For receivables / payables with a remaining life of less than one year, the nominal amount is deemed to reflect the fair value. All other receivable / payables are discounted to determine the fair value. Accounting policy Financial assets All Financial assets are recognised and derecognised on trade date where the purchase or sale of a financial asset is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, net of any transaction costs. Effective interest method The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts
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(including all fees paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial asset or, where appropriate, a shorter period. Income is recognised on an effective interest rate basis for debt instruments other than those financial assets ‘at fair value through the Statement of Comprehensive Income’. Financial assets/Trade and other receivables Trade and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘Financial assets - at amortised cost’, which represents their transaction value. Impairment is recognised on an expected credit loss (ECL) basis. When determining whether the credit risk has increased significantly since initial recognition, and when estimating the ECL, Tasracing considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis based on Tasracing’s historical experience, an informed credit assessment and forward-looking information. Tasracing has established a provision matrix to facilitate the impairment assessment. Interest income is recognised by applying the effective interest rate, except for short term receivables when the recognition of interest would be immaterial. Impairment of financial assets Financial assets, other than those at fair value through the Statement of Comprehensive Income, are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected. For financial assets carried at amortised cost, the amount of the impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate. The carrying amount of a financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade receivables, where the carrying amount is reduced through the use of the ECL account. When a trade receivable is considered uncollectable, it is written off against the ECL account. Changes in the carrying amount of the ECL account are recognised in the Statement of Comprehensive Income. Derecognition of financial assets Tasracing derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If Tasracing neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the company recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If Tasracing retains substantially all the risks and rewards of ownership of a transferred financial asset, Tasracing continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received. Financial liabilities and equity instruments Debt and equity instruments are classified as either financial liabilities or equity in accordance with the substance of the contractual agreement. Interest and dividends are classified as expenses or as distributions of profit consistent with the Statement of Financial Position classification of the related debt or equity instruments or component parts of compound instruments. Financial liabilities Financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. Other financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis. The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period, to the net carrying amount on initial recognition. Derecognition of financial liabilities Tasracing derecognises financial liabilities when, and only when, Tasracing’s obligations are discharged, cancelled or they expire.
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FINANCIAL RISK MANAGEMENT OBJECTIVES Tasracing has exposure to the following risks from the use of financial instruments: (i) Interest rate risk (ii) Credit risk, and (iii) Liquidity risk (i) Interest rate risk management Interest rate risk is limited to movements in “at call” and “short term fixed” interest rates on investments. The majority of Tasracing’s borrowings are at fixed rates of interest. Impact on Statement of Impact on Equity Interest rate sensitivity analysis Comprehensive Income/(Loss) 100 basis 100 basis points 100 basis 100 basis points
(ii) Credit risk management
points increase
decrease
points increase
decrease
$
$
$
$
30 June 2023
85,140
(85,140)
85,140
(85,140)
30 June 2022
94,690
(94,690)
94,690
(94,690)
Credit risk represents the loss that would be recognised if debtors failed to meet their obligations under a contract or arrangement. The major exposure to credit risk arises from receivables. Tasracing has a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral where appropriate, as a means of mitigating the risk. The average credit period on these items is 30 days with a large number of smaller debtors reducing the risk. No interest is charged on receivables. An allowance has been made for estimated unrecoverable trade receivable amounts arising from past transactions, determined by reference to past default experience. Further details are disclosed in note B2. (iii) Liquidity risk management Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has built an appropriate liquidity risk management framework for the management of Tasracing’s short, medium and long term funding and liquidity management requirements. Tasracing manages liquidity risk by maintaining adequate reserves and banking facilities by continuously monitoring forecast and actual cash flows. The table below shows the contractual maturities of financial liabilities and expected maturities of financial assets. Weighted Average Effective Interest < 1 year 1-2 years 2-5 years > 5 years Total Rate 30 June 2023
$
$
$
$
$
Cash and cash equivalents
17,027,961
-
-
-
17,027,961
4.46%
Financial assets at amortised cost
2,293,725
-
-
-
2,293,725
-
94,507
-
-
-
94,507
-
19,416,193
-
-
-
19,416,193
3.91%
Trade and other payables
5,109,993
-
-
-
5,109,993
-
Other financial liabilities
213,404
-
-
-
213,404
-
Borrowings
932,971
974,680
1,801,318
1,684,450
5,393,419
3.96%
6,256,368
974,680
1,801,318
1,684,450
10,716,816
1.99%
Financial Assets
Other financial assets at amortised cost Total Financial Assets Financial Liabilities
Total Financial Liabilities
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Weighted Average Effective Interest Total Rate
< 1 year
1-2 years
2-5 years
> 5 years
$
$
$
$
$
Cash and cash equivalents
18,937,967
-
-
-
18,937,967
1.31%
Financial assets at amortised cost
2,133,486
-
-
-
2,133,486
-
Other financial assetsat amortised cost
94,507
-
-
-
94,507
-
Total Financial Assets
21,165,960
-
-
-
21,165,960
1.17%
Trade and other payables
5,204,416
-
-
-
5,204,416
-
Other financial liabilities
200,578
-
-
-
200,578
-
Borrowings
5,487,628
255,808
536,237
-
6,279,672
3.90%
Total Financial Liabilities
10,892,622
255,808
536,237
-
11,684,666
2.48%
30 June 2022 Financial Assets
Financial Liabilities
OTHER KEY MANAGEMENT PERSONNEL COMPENSATION D1
Key Management Personnel
Tasracing’s remuneration policy has been designed to align key management personnel objectives with business objectives by providing a fixed remuneration. The Board believes the remuneration policy to be appropriate and effective in its ability to attract and retain the best key management personnel to run and manage Tasracing, as well as create goal congruence between directors, executives, shareholders and other key stakeholders. The Board is remunerated in accordance with the Tasmanian State Government remuneration framework which recommends the maximum remuneration amount available to the members of Government boards. Tasracing has complied with the Guidelines for Tasmanian Government Businesses – Director and Executive Remuneration except for: •
In September 2022 an exception was appoved by Government for the CEO’s remuneration to exceed the remuneration band established by the Government Business Executive Remuneration Advisory Panel.
•
In February 2023 an exception was appoved by Government for the Chief Vetinary and Animal Welfare Officer to remunerated to within 80 per cent of the maximum approved CEO remuneration band; and
•
The average senior executive remuneration to be above 70 per cent of the Government for the maximum approved CEO remuneration band until 30 June 2025.
The Board’s policy for determining the nature and amount of remuneration for Tasracing’s key management personnel is as follows: •
Remuneration is approved by the remuneration committee and then approved by the Board after professional advice is sought from independent external consultants.
•
All key management personnel receive a base salary (which is based on factors such as position, competency, length of service and experience), superannuation and other benefits.
•
No performance incentives exist for the current members of the executive.
•
The remuneration committee reviews key management personnel packages annually by reference to Tasracing’s performance, executive performance and comparable information from industry sectors.
Consistent with legislated requirements, key management personnel receive a superannuation guarantee contribution, which is currently 10.50%, and do not receive any other retirement benefits.
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All remuneration paid to key management personnel is valued at the cost to Tasracing and expensed. All transactions with key management personnel, including the payment of prizemonies, including payments to syndicates, were conducted on an arm’s length basis in the ordinary course of business and on commercial terms and conditions. Non-executive directors The Board’s policy is to remunerate non-executive directors in accordance with guidelines and sizing statements provided by The Department of Treasury and Finance and Department of Premier and Cabinet respectively. Remuneration details for the year ended 30 June 2023 The key management personnel of Tasracing Pty Ltd during the year were: Board of Directors G. Phair (Chairperson, non-executive director) M. Wallace (Deputy Chairperson, non-executive director) H. Galloway (Deputy Chairperson, non-executive director), to 15 December 2022 D. Garnier (non-executive director) M. Gordon (non-executive director) N. Grose (non-executive director) S. Jacobson (non-executive director), from 15 December 2022 S. Old (non-executive director), from 15 December 2022 R. Whishaw (non-executive director), to 15 December 2022 Executive Management P. Eriksson (Chief Executive Officer), to 8 July 2022 A. Jenkins (Chief Executive Officer), acting from 11 July 2022 - permanent from 7 February 2023 D. Heald (Chief Financial Officer) A. Jenkins (Chief Operating Officer), from 1 July 2022 to 10 July 2022 M. Lenz (Chief Veterinary and Animal Welfare Officer), from 16 January 2023 D. Manshanden (Chief Operating Officer), from 8 May 2023 Table of benefits and payments for the year ended: The aggregate compensation made to directors and other members of key management personnel of Tasracing is set out below: Directors Remuneration Executive Remuneration Consolidated 2023 2022 2023 2022 2023 2022 $'000
$'000
$'000
$'000
$'000
$'000
Short-term employee benefits
227
231
506
521
733
643
Post-employment benefits
23
24
52
48
75
58
Other long-term benefits
0
0
8
21
8
24
Termination benefits
0
0
0
0
0
0
250
255
565
590
816
725
For Director remuneration, Short term employment benefits includes Director fees, Committee fees and Other benefits. Post employment benefits represents superannuation contributions. For Executive remuneration, short-term employment benefits includes base salary, short-term incentive payments, vehicles, other benefits and other non-monetary benefits. Post employment benefits represents superannuation contributions and other long-term employee benefits includes leave movements.
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(a) Remuneration for Board of Directors The following tables disclose the remuneration details for each person that acted as a director during the current and previous financial years: Board remuneration 30 June 2023 1 2 Position
Directors Fees $’000
Superannuation $’000
Total $’000
Mr G Phair
Chairperson
54
60
60
Mr M Wallace
Deputy Chairperson
29
32
32
Mrs H Galloway (to 15 December 2022)
Deputy Chairperson
13
14
14
Mr D Garnier
Director
29
32
32
Mr M Gordon
Director
29
32
32
Mr N Grose
Director
29
32
32
Ms S Jacobson (from 15 December 2022)
Director
15
17
17
Mr S Old (from 15 December 2022)
Director
15
17
17
Mrs R Whishaw (to 15 December 2022)
Director
13
14
14
227
23
250
Name
Total Board remuneration
30 June 2022 Directors Fees 1 Position
$’000
Superannuation 2 $’000
Total $’000
Mr G Phair
Chairperson
56
6
62
Mrs H Galloway
Deputy Chairperson
29
3
32
Mr D Garnier
Director
29
3
32
Mr M Gordon
Director
29
3
32
Mr N Grose (from 25 November 2021)
Director
17
2
19
Mr J Wallace (to 25 November 2021)
Director
13
1
14
Mr M Wallace
Director
29
3
32
Mrs R Whishaw
Director
Name
Total 1 2
29
3
32
231
24
255
Amounts are all forms of consideration paid, payable or provided by the company, i.e. disclosure is made on an accruals basis as at 30 June. Superannuation means the contribution to the superannuation fund of the individual.
Non-Executive Directors Non-executive Directors are appointed by the Treasurer and Racing Minister. Each instrument of appointment is for a maximum period of three years and prescribes the relevant remuneration provisions. Directors can be re-appointed in accordance with the relevant Guidelines for Tasmanian Government Businesses - Board Appointments. The level of fees paid to non-executive Directors is administered by the Department of Premier and Cabinet, as is additional fees paid in respect of their work on Board committees. Superannuation is paid at the appropriate rate as prescribed by superannuation guarantee legislation. No other leave, termination or retirement benefits are accrued or paid to Directors. Directors are entitled to reimbursement of reasonable expenses incurred while attending to Board business. Non-executive Directors’ remuneration is reviewed periodically with increases subject to approval by the Treasurer and Racing Minister.
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(b) Executive Remuneration The following tables disclose the remuneration details for each person that acted as a senior executive during the current and previous financial year: Executive Remuneration 30 June 2023
Vehicles Benefits3 $’000
Other Benefits 4 $’000
Reported Remuneration $’000
Termination Benefits 5 $’000
Other Long Term Benefits 6 $’000
Total $’000
Chief Executive Officer (to 8 July
Superannuation 2 $’000
Mr P Eriksson
Position Base Salary 1 $’000
Name
7
1
0
0
8
88
-21
75
212
22
12
0
246
0
12
258
166
17
0
0
184
0
6
190
5
1
0
0
6
0
0
6
77
8
0
0
85
0
8
93
26
3
0
0
29
0
3
31
494
52
12
0
557
88
8
654
2022)
Mr A Jenkins
Chief Executive Officer (acting from 11 July 2022 - permanent from 7 February 2023)
Mr D Heald
Chief Financial Officer
Mr A Jenkins
Chief Operating Officer (to 10 July 2022)
Mr M Lenz
Chief Veterinary and Animal Welfare Officer (from 16 January 2023)
Mr D Manshanden
Chief Operating Officer (from 8 May 2023)
Total Executive Remuneration
Superannuation 2 $’000
Vehicles Benefits3 $’000
Other Benefits 4 $’000
Reported Remuneration $’000
Termination Benefits 5 $’000
Other Long Term Benefits 6 $’000
Total $’000
Position Base Salary 1 $’000
Name
30 June 2022
Mr P Eriksson
Chief Executive Officer
254
23
10
0
287
0
5
293
Mr D Heald
Chief Financial Officer
166
17
2
0
185
0
8
193
Mr A Jenkins
Chief Operating Officer
84
8
4
0
97
0
8
104
504
48
16
0
569
0
21
590
(from 17 January 2022)
Total 1 2 3
4
5 6
Base salary includes all forms of consideration paid and payable for services rendered, compensated absences during the period and salary sacrifice amounts. Superannuation means the contribution to the superannuation fund of the individual. Vehicle Benefits includes the personal use component of the total cost of providing and maintaining a vehicle for an executive’s use, calculated using the FBT taxable value of the personal use component for the financial year plus the FBT payable thereon. Other benefits includes all other forms of employment allowances (excludes reimbursements such as travel, accommodation or meals), payments in lieu of leave, and any other compensation paid and payable. Termination benefits include all forms of benefit paid or accrued as a consequence of termination. Other long-term benefits include annual and long service leave movements.
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Termination benefits Termination payments during the current year included: - Mr Eriksson ceased employment effective 8 July 2022 was paid $88,475, which comprised leave entitlements and payments in lieu of notice. Acting Arrangements When members of key management personnel are unable to fulfil their duties, consideration is given to appointing other members of senior staff to their position during their period of absence. Individuals are considered members of key management personnel when acting arrangements are for more than a period of one month. In the current year, Mr Jenkins was appointed to the above positions for the periods shown, whilst the positions were vacant. D2 Transactions with Related Parties For all Tasmanian Government businesses, related parties are considered to include: - a subsidiary or joint venture; - key management personnel or close family members of key management personnel; - Ministers or close family members of Ministers; - any entities controlled or jointly controlled by key management personnel or their close family members; and - any entities controlled or jointly controlled by Ministers or their close family members. All related party transactions have been entered into on an arm’s length basis. During the year, Tasracing entered into the following transactions with related parties: Amount of transactions Nature of the transaction during the year Transaction description
Sponsorship income
$500
Stakes payments (including prizemonies and bonus payments)
$45,545
Armidale Stud, which is controlled by a member of KMP of Tasracing, made a sponsorship payment to the Thoroughbred Awards Dinner.
Stakes and prizemoney payments were made to KMP. These payments are made in the ordinary course of business in line with Tasracing stakes payment procedures.
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OTHER COMMITMENTS
2023
2022
$
$
4,302,806
1,616,723
4,302,806
1,616,723
- not later than one year
1,498,495
1,679,591
- later than 1 year but not later than 5 years
1,306,270
534,517
2,804,765
2,214,108
D3 Expenditure Commitments (i) Capital expenditure commitments Leasehold improvements Contractual commitments for the acquisition of property, plant or equipment: - not later than one year
(ii) Other contractual commitments Non-cancellable contracts payable:
Commitments in place are for vision and broadcast, medical services and general property maintenance service agreements.
OTHER D4 Economic Dependency A significant proportion of Tasracing’s revenue is dependent on a funding deed through to 2029 with the State government which provides base funding of $30.79m increasing by CPI annually. In addition, the deed allows for a $40m debt facility with TASCORP of which Treasury will provide support in the form of principal and interest reimbursements, subject to certain conditions. D5 Subsequent Events No matters or circumstances have occurred subsequent to the end of the financial year that have significantly affected, or may significantly affect, the operations of the company, the results of those operations, or the state of affairs of the company in future financial years. D6 Contingent Assets/Liabilities
After due investigation Tasracing has identified no material contingent assets or liabilities. D7 Operating Segments Reportable segments Tasracing operates in the racing industry, where its principal activity is the administration, oversight and funding of the three codes of racing in Tasmania. Tasracing has determined that the Company operates a single operating segment as defined under AASB 8 Operating Segments. The Company operates a single business activity (racing) in a single geographical environment (Tasmania). A substantial portion of Tasracing’s revenues and expenses cannot be reasonably allocated to individual racing codes in a manner that would result in relevant and meaningful disclosures. This is primarily due to the existence of revenues and expenses that are common across all racing codes or not directly linked to any specific code. The measurement of assets, liabilities, and equity are treated on a single business activity basis. Major customers One customer represents 10% or more of the operating revenue, totalling $9,141,401. For the purpose of AASB 8, State Government are not considered to be a major customer. OTHER SIGNIFICANT ACCOUNTING POLICIES The following significant accounting policies have been adopted in the preparation and presentation of the financial report: Goods and Services Tax Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except: i. where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of the cost of acquisition of an asset or as part of an item of expense; or
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ii. for receivables and payables which are recognised inclusive of GST. The amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables and payables. Impairment of non-financial assets At the end of each reporting period, Tasracing reviews the carrying amounts of its tangible and intangible assets to determine whether there is an indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, Tasracing estimates the recoverable amount of the cash generating unit to which it belongs. Where a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cashgenerating units for which a reasonable and consistent allocation basis can be identified. Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually, and whenever there is an indication that the asset may be impaired. The recoverable amount is the higher of fair value less costs to sell or value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in the Statement of Comprehensive Income, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. Impairment losses are allocated prorata across assets in the cash generating unit. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash generating unit) in prior years. A reversal of an impairment loss is recognised immediately in the Statement of Comprehensive Income, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. The impairment reversal is allocated prorata across assets in the cash generating unit. Current Year There was no impairment charge in 2023. Prior Year There was an impairment charge of $258,890 in 2022. a) Accounting standards adopted In the current year Tasracing has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that are relevant to its operations and effective for the current annual reporting period and determined that none would have a material effect on the Company’s operations or financial reporting. b) Pending Accounting Standards Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2023 reporting periods. Tasracing’s assessment of the impact of the relevant new standards and interpretations is set out below. AASB 2020-1 Amendments to Australian Accounting Standards – Classification of Liabilities as Current or Non-Current and AASB 2020-6 Amendments to Australian Accounting Standards – Classification of Liabilities as Current or Non-current – Deferral of Effective Date. The amendments to the Australian Accounting Standards require a liability to be classified as current when an entity does not have a substantive right to defer settlement at the end of the reporting period. The application of the amendments to the Standard applies to financial reporting periods beginning on or after 1 January 2024. The Company does not anticipate that the application of the amendments will have a material impact on the financial statements.
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AASB 2021-2 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and Definition of Accounting Estimates. The amendments to the Australian Accounting Standards are to improve accounting policy disclosures so that they provide more useful information to investors users of the financial statements and clarify the distinction between accounting policies and accounting estimates. The amendments are effective for annual periods beginning on or after 1 January 2023. The amendments to the individual Standards may be applied early, separately from the amendments to the other Standards, where feasible. The Company does not anticipate that the amendments will have a material impact, but may change the disclosure of accounting policy information included in the financial statements. All other Australian accounting standards and interpretations with future effective dates are either not applicable to Tasracing’s activities, or have no material impact. The directors anticipate that the adoption of these standards and interpretations in future periods will have no material financial impact on the financial statements of Tasracing. IFRS Accounting Standards and IFRS Interpretations Committee Interpretations were on issue but not yet effective, but for which Australian equivalent Standards and Interpretations have not yet been issued: In June 2023 the International Sustainability Standards Board (ISSB) issued its first two IFRS Sustainability Disclosure Standards, IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures. IFRS S1 is effective for annual reporting periods beginning on or after 1 January 2024 with earlier application permitted as long as IFRS S2 is also applied. The objective of IFRS S1 is to require an entity to disclose information about its sustainability-related risks and opportunities that is useful to users of general purpose financial reports in making decisions relating to providing resources to the entity. IFRS S2 is effective for annual reporting periods beginning on or after 1 January 2024 with earlier application permitted as long as IFRS S1 is also applied. The objective of IFRS S2 is to require an entity to disclose information about its climaterelated risks and opportunities that is useful to users of general purpose financial reports in making decisions relating to providing resources to the entity. Tasracing has not yet assessed the impact of IFRS S1 and S2.
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11 August 2023 The Board of Directors Tasracing Pty Ltd PO Box 730 GLENORCHY TAS 7010
Dear Board Members
Auditor’s Independence Declaration In accordance with section 307C of the Corporations Act 2001, I provide the following declaration of independence. As the auditor of the financial statements of Tasracing Pty Ltd for the financial year ended 30 June 2023, I declare that to the best of my knowledge and belief, there have been no contraventions of: (a)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit
(b)
any applicable code of professional conduct in relation to the audit.
In accordance with the Corporations Act 2001 a copy of this declaration must be included in the Directors’ Report. Yours sincerely
Rod Whitehead Auditor-General
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Independent Auditor’s Report To the Members of Tasracing Pty Ltd Report on the Audit of the Financial Report Opinion I have audited the financial report of the Tasracing Pty Ltd (the Company), which comprises the statement of financial position as at 30 June 2023 and statements of comprehensive income, cash flows and changes in equity for the year then ended, notes to the financial statements, including a summary of significant accounting policies and the directors’ declaration. In my opinion, the accompanying financial report of the Company is in accordance with the Corporations Act 2001, including: (a) giving a true and fair view of the Company’s financial position as at 30 June 2023 and of its financial performance for the year then ended (b) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion I conducted the audit in accordance with Australian Auditing Standards. My responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of my report. I am independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to my audit of the financial report in Australia. I have also fulfilled my other ethical responsibilities in accordance with the Code. The Audit Act 2008 further promotes the independence of the Auditor-General. The AuditorGeneral is the auditor of all Tasmanian public sector entities and can only be removed by Parliament. The Auditor-General may conduct an audit in any way considered appropriate and is not subject to direction by any person about the way in which audit powers are to be exercised. The Auditor-General has for the purposes of conducting an audit, access to all documents and property and can report to Parliament matters which in the AuditorGeneral’s opinion are significant.
1
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I confirm that the independence declaration required by the Corporations Act 2001, provided to the directors of the Company on 11 August 2023 and included in the Directors’ Report, would be in the same terms if provided to the directors at the time of this auditor’s report. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
Other Information The directors are responsible for the other information. The other information comprises the information included in the Company’s Directors’ Report for the year ended 30 June 2023, but does not include the financial report and my auditor’s report thereon. My opinion on the financial report does not cover the other information and accordingly I do not express any form of assurance conclusion thereon. In connection with my audit of the financial report, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or my knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards, and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report My objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.
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As part of an audit in accordance with the Australian Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit. I also: •
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
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Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
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Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify my opinion. My conclusion is based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
•
Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.
I communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit. I also provide the directors with a statement that I have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on my independence, and where applicable, actions taken to eliminate threats or safeguards applied.
Rod Whitehead Auditor-General Tasmanian Audit Office 14 August 2023 Hobart 3
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