Department of Racing, Gaming and Liquor · Racing, Gaming and Liquor for the financial year ended 30 June 2014. The Annual Report has been prepared in accordance with the provisions

Department of Racing, Gaming and Liquor 2013/14 Annual Report

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TABLE OF CONTENTS

Contacts ................................................................................................................................. 2

Statement of Compliance ....................................................................................................... 3

Overview of Agency ............................................................................................................... 4

Operational Structure ............................................................................................................. 6

Key Functions of the Department .......................................................................................... 9

Performance Management Framework................................................................................ 11

Agency Performance ........................................................................................................... 12

Report on Operations ....................................................................................................... 12

Liquor Regulation ............................................................................................................. 13

Gambling Regulation ........................................................................................................ 20

Strategic Regulation ......................................................................................................... 25

Administrative Law ........................................................................................................... 26

Significant Issues Impacting the Agency.............................................................................. 27

Changes in Legislation......................................................................................................... 58

Changes to Regulations ................................................................................................... 58

Restricted Area Regulations ............................................................................................. 58

Disclosures and Legal Compliance ...................................................................................... 60

Financial Statements ........................................................................................................ 60

Key Performance Indicators ............................................................................................. 96

Ministerial Directives .......................................................................................................... 103

Other Financial Disclosures ............................................................................................... 103

Governance Disclosures .................................................................................................... 105

Other Legal Requirements ................................................................................................. 105

Government Policy Requirements ..................................................................................... 107

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CONTACTS

Office location: Level 1

87 Adelaide Terrace East Perth WA 6004

Postal address: PO Box 6119

East Perth WA 6892 Telephone: (08) 9425 1888 Facsimile: (08) 9325 1041 Toll free: 1800 634 541 Internet: www.rgl.wa.gov.au Email: [email protected] AVAILABILITY IN OTHER FORMATS This publication can be made available in alternative formats such as compact disc, audiotape or Braille. The report is available in PDF format at www.rgl.wa.gov.au People who have a hearing or speech impairment may call the National Relay Service on 133 677 and quote telephone number (08) 9425 1888.

http://www.rgl.wa.gov.au/

mailto:[email protected]


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STATEMENT OF COMPLIANCE

Hon. Terry Waldron, MLA MINISTER FOR SPORT AND RECREATION; RACING AND GAMING In accordance with section 61 of the Financial Management Act 2006, I hereby submit, for your information and presentation to Parliament, the Annual Report of the Department of Racing, Gaming and Liquor for the financial year ended 30 June 2014. The Annual Report has been prepared in accordance with the provisions of the Financial Management Act 2006.

Michael Connolly ACTING DIRECTOR GENERAL 16 September 2014

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OVERVIEW OF AGENCY

Executive Summary While much of the discussion resonating throughout industry and other stakeholder groups during the reporting period focussed on the review of the Liquor Control Act 1988, it was business as usual for the Department across all areas of its portfolio, with more than 16,700 licences, transfers, permits, orders, notices and certificates being issued during the year. Of the 230 applications for new liquor licences determined during the year, 11 were refused. The widespread interest in the review, was evidenced by the 149 submissions received by the Liquor Act Review Committee. During the year, the Department assisted in the promulgation of 25 amendments to regulations that fall within the Department‟s areas of business, including the introduction of three new betting products for bookmakers; that is, top fluctuation, starting price guarantee and tote based betting. The number of people applying to be approved managers of licensed premises remained consistent with the previous financial year, with a total of 4407 approved during the year. Last year saw changes to the Liquor Control Regulations 1989 that simplified the process for restaurants accommodating 120 persons or less to apply for a Liquor Without a Meal (LWM) permit. Applicants who qualify for this form of permit do not have to provide a Public Interest Assessment and also pay less for the permit. These changes continued to influence the number of venues applying for a permit this year. During the year, 148

of these permits were granted by the Department, bringing the total number of active LWM permits to 317. The Department also received inquiries regarding the issue of purchasing liquor at licensed restaurants. Under the Act, the primary purpose of a restaurant licence is to allow the sale and supply of liquor ancillary to a meal. At venues that do not hold a LWM permit, the Act states liquor must be ancillary to a meal, which must be eaten while seated at a table (or fixed structure). Restaurants holding a LWM permit are allowed to sell liquor without the need for customers to purchase a meal, provided the liquor is consumed while sitting at a table or fixed structure. As at 30 June 2014, the number of orders prohibiting persons from entering licensed premises was 141 while the total number of private premises restricted from having alcohol brought into or consumed therein was 348. An issue that arose during the year centred on confusion surrounding the notion of special facility licences. Some sections of the public believe the decision to grant a special facility licence is linked to whether the proposed venture is tourism-based, and subsequently the granting of the special licence turns on the definition of “tourism”; this is incorrect. The licensing authority can only grant a special facility licence when no other licence category is suitable and the business model fits into one of the prescribed purposes. It was a busy year in terms of gaming permits and certificates issued by the

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Department on behalf of the Gaming and Wagering Commission (GWC), 2208 were issued during the year. This resulted in a gross amount of more than $62 million being raised by permit holders, with a net amount of approximately $21.5 million returned to beneficiary organisations after the deduction of expenses. During the financial year, casino gaming revenue of $665 million was generated, producing more than $115 million in casino taxation revenue for the State, while approximately $33 million in Racing Bets Levy was remitted to Racing and Wagering Western Australia (RWWA) for distribution to the WA racing industry. A total of 2247 and 87 staff members were licensed by the Department on behalf of the GWC, as Crown Perth and RWWA employees respectively. Aside from the regular inspections detailed later in this report, the Department‟s premises inspectors continued an ongoing statewide inspection program to ensure venues comply with the requirements of the Act and those imposed by the licensing authority. Essentially, the inspections were

to establish and enforce a minimum standard of services in relation to fire safety and evacuation of licensed premises that provide accommodation. From an administrative perspective, the Department formed a cluster with the Department of Local Government and Communities, the State Heritage Office and the Equal Opportunity Commission as part of the decommissioning process from the Office of Shared Services in October 2013. As a result, the Department has now gone live with its new Human Resources and Finance systems (Aurion and Tech ONE respectively). The Department also continued on a major initiative to retire three regulatory systems and implement a single unified model that combines licensing and compliance operations. Currently referred to as the Unified Regulatory System, the system will allow licence applications to be lodged online, and is scheduled to go live in early 2015. I take this opportunity to thank all staff for their continued contribution to the effective operation of the Department.

Barry A Sargeant DIRECTOR GENERAL

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OPERATIONAL STRUCTURE

ENABLING LEGISLATION

The Department of Racing, Gaming and Liquor is established as a Department under section 35 of the Public Sector Management Act 1994.

RESPONSIBLE MINISTER

The Minister responsible for the Racing and Gaming portfolio was the Honourable Terry Waldron MLA, Minister for Sport and Recreation; Racing and Gaming.

MISSION, VISION AND VALUES

The Department of Racing, Gaming and Liquor‟s mission is to regulate the liquor and gambling industries in Western Australia. This is achieved through the licensing of suppliers and industry support services. The vision of the Department is to regulate the liquor and gambling industries in Western Australia with integrity. The Department‟s values are respect, professionalism, innovation excellence, accountability and collaboration.

CORPORATE EXECUTIVE Barry Sargeant PSM, Director General

Mr Sargeant is the accountable officer for the Department of Racing, Gaming and Liquor, a position he has held since 1992. As Director General, Mr Sargeant is the administrative head for the operations of the Department of Racing, Gaming and Liquor. He is also the employing authority for all staff. Mr Sargeant also holds the statutory positions of Director of Liquor Licensing and, in an ex officio capacity, Chairman of the Gaming and Wagering Commission of Western Australia.

Michael Connolly, Deputy Director General

Mr Connolly leads the implementation of policies and initiatives relevant to the regulation of the liquor and gambling industries. Mr Connolly supports the Director General in establishing and refining the strategic direction of the Department, and overseeing the operational management of the Department. He also exercises high level statutory authority and delegation and makes legally binding decisions.

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Nicola Perry, Director Liquor Regulation

Ms Perry has more than 12 years experience with the Department, and has held licensing and compliance positions, as well as having four years experience as Deputy Director Licensing. Ms Perry is responsible for leading the regulation of the Western Australian liquor industry to support harm minimisation and ensure the integrity of industry operations.

Lance Sgro, Director Gambling Regulation

Mr Sgro has been in the Public Sector for more than 25 years in a number of diverse roles across compliance and policy. Mr Sgro leads a team of compliance and licensing officers who are responsible for the regulation of the Western Australian gambling industry to support harm minimisation and ensure the integrity of industry operations.

Mark Beecroft, Director Strategic Regulation

Mr Beecroft has more than 30 years experience in the public sector, including the past 21 years in various licensing, regulatory and policy roles within the Department. He is responsible for leading the policy, legislative, communications and regional engagement strategies in relation to the Western Australian liquor and gambling industries.

Peter Minchin, Director Administrative Law

Mr Minchin has more than 26 years experience in the public sector and began working at the Department in 1991. He has been appointed to various senior positions in the Department including Manager Licensing, Director of Liquor Licensing and Principal Adviser to the Liquor Commission of WA. Mr Minchin is responsible for the Administrative Law Division which delivers complex liquor licensing determinations and provides authoritative advice on liquor licensing matters. The Division also provides executive support services to the Racing Penalties Appeal Tribunal, the Liquor Commission, the Problem Gambling Support Services Committee and the Gaming Community Trust.

Vanessa Grant, Executive Director Governance and Strategy

Ms Grant has more than 21 years experience in both the WA state public sector and Australian Public Service. Ms Grant is responsible for the provision of operational and strategic financial, human resources, information technology, information management, planning and executive support services.

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DEPARTMENTAL ORGANISATIONAL CHART AS AT 30 JUNE 2014

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KEY FUNCTIONS OF THE DEPARTMENT

The Department is engaged in a range of activities and provides a number of core services to the public of Western Australia to ensure that government objectives and desired outcomes are achieved. In particular, the Department provides:

Licensing, inspectorial and audit services for the liquor and gambling industries;

Expertise and experience in structuring legislation and policy relevant to the liquor and gambling industries; and

Information and support to stakeholders, as well as programs designed to raise awareness of relevant legislation and policies.

In addition, the Department also provides support services to the Gaming and Wagering Commission of Western Australia, the Liquor Commission of Western Australia, the Racing Penalties Appeal Tribunal of Western Australia, the Gaming Community Trust and the Problem Gambling Support Services Committee.

ADMINISTERED LEGISLATION

The Minister for Racing and Gaming administers the following Acts:

Betting Control Act 1954;

Bookmakers Betting Levy Act 1954;

Casino (Burswood Island) Agreement Act 1985;

Casino Control Act 1984;

Gaming and Betting (Contracts and Securities) Act 1985;

Gaming and Wagering Commission Act 1987;

Liquor Control Act 1988;

Racing and Wagering Western Australia Act 2003;

Racing and Wagering Western Australia Tax Act 2003;

Racing Bets Levy Act 2009;

Racing Penalties (Appeals) Act 1990;

Racing Restriction Act 2003;

The Western Australian Turf Club Act 1892;

Western Australian Turf Club (Property) Act 1944;

Western Australian Greyhound Racing Association Act 1981; and

Western Australian Trotting Association Act 1946.

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OTHER KEY LEGISLATION IMPACTING ON THE DEPARTMENT’S ACTIVITIES

In the performance of its functions, the Department complies with the following relevant written laws:

Auditor General Act 2006;

Contaminated Sites Act 2003;

Criminal Procedures Act 2004

Criminal Investigation Act 2006

Disability Services Act 1993;

Equal Opportunity Act 1984;

Electronic Transactions Act 2003;

Financial Management Act 2006;

Freedom of Information Act 1992;

Industrial Relations Act 1979;

Minimum Conditions of Employment Act 1993;

Occupational Safety and Health Act 1984;

Public Interest Disclosure Act 2003;

Public Sector Management Act 1994;

Salaries and Allowances Act 1975;

State Records Act 2000; and

State Supply Commission Act 1991.

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PERFORMANCE MANAGEMENT FRAMEWORK

OUTCOME BASED MANAGEMENT FRAMEWORK

Broad government goals are supported by the Department by specific outcomes, and the Department delivers services to achieve these outcomes. The following table illustrates the relationship between the Department‟s services and desired outcomes, and the goals of Government.

GOVERNMENT GOAL DESIRED OUTCOME OF

THE DEPARTMENT

SERVICES DELIVERED BY THE

DEPARTMENT

Greater focus on achieving results in key service delivery

areas for the benefit of all Western Australians.

To minimise harm to the community of liquor and

gambling activities through the application of government

legislation and policy.

Evaluation and determination of

licensing applications.

Conduct of compliance audits and inspections.

CHANGES TO OUTCOME BASED MANAGEMENT FRAMEWORK

The Department‟s Outcome Based Management Framework did not change during 2013/14.

SHARED RESPONSIBILITIES WITH OTHER AGENCIES

The Department has shared responsibilities with the:

Department of Local Government and Communities;

Department of Heritage; and

Equal Employment Commission,

for the provision of Human Resources (Aurion) and Finance (Tech ONE) systems.

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AGENCY PERFORMANCE

REPORT ON OPERATIONS Actual Results versus Budget Targets

FINANCIAL TARGETS TARGET ACTUAL VARIATION

Total cost of services (expense limit) (sourced from Statement of Comprehensive Income)

$14,523 $16,382 $1859

Net cost of services (sourced from Statement of Comprehensive Income)

$4866 $6049 $1183

Total equity (sourced from Statement of Financial Position)

$9564 $8041 ($1523)

Net increase / (decrease) in cash held (sourced from Statement of Cash Flows)

$282 ($2535) ($2817)

No. No. No.

Approved full time equivalent (FTE) staff level 109 113 41

SUMMARY OF KEY PERFORMANCE INDICATORS

2013/142 TARGET

2013/14 ACTUAL

VARIATION

Licensee/service providers that comply with audit requirements and statutory criteria

93% 96% 3%

Evaluation and determination of licensing applications – average cost of determining applications

$501 $522 $21

Compliance audits and inspections – average cost of conducting an inspection

$1178 $1124 ($54)

1 Four former Office of Shared Services FTE staff were employed by the Department on the decommissioning of that office.

2 Detailed information on Key Performance Indicators can be found from pages 97 to 99.

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LIQUOR REGULATION The Liquor Control Act 1988 provides the legislative framework for the liquor licensing authority, comprising the Director of Liquor Licensing and the Liquor Commission, to regulate the:

Sale, supply and consumption of liquor;

Use of premises on which liquor is sold; and

Services and facilities provided in conjunction with the sale of liquor.

One of the primary objects of the Act is to minimise harm or ill-health caused to people, or any group of people, due to the use of liquor. In accordance with section 13 of the Act, the Director of Liquor Licensing is responsible for the administration of the legislation, other than those aspects that relate to the Liquor Commission. In addition to determining liquor licensing applications, the Director of Liquor Licensing is also empowered under other sections of the Act to:

Monitor the standards of licensed premises;

Ensure compliance with the requirements of the Liquor Control Act 1988;

Develop and implement policy consistent with Government objectives;

Provide policy advice;

Negotiate and liaise with industry groups on high level matters, such as Liquor Accords and industry training;

Consider section 117 complaints (complaints about noise or behaviour related to licensed premises) and be responsive to such complaints; and

Determine any matters arising from the administration of the Act.

The Department also performs functions for the Commonwealth Government in respect to liquor activities on Christmas and Cocos islands. The cost of services provided in the Indian Ocean Territories is recouped by the Department from the Commonwealth and retained as part of a net appropriation determination.

LIQUOR LICENSING

The Department provides a licensing service for the liquor industry where applications made in accordance with the provisions of the relevant legislation are evaluated and determined by the Liquor Regulation and Administrative Law Divisions. The table on page 14 provides a four-year summary of the type and quantity of liquor licence applications received by the Department. Overall there was approximately a five per cent decrease in the number of applications received compared to the previous year.

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The reduction in applications can be predominantly attributed to the number of occasional licence applications being significantly less than the previous year. This could be a result of a greater awareness in the community of the types of functions that previously required an occasional liquor licence but are now exempt under the regulations introduced in 2011. However, the introduction of a streamlined process for Liquor Without a Meal permits for restaurants with less than 120 people or less has seen an increase in the number of applications for the Extended Trading Permit (other long term) category.

LIQUOR LICENSING APPLICATIONS RECEIVED

Licence Type 2010/11 2011/12 2012/13 2013/14

Transfer of Licence 253 246 247 309

Grant and Removal of Licence 226 284 209 252

Alteration/Redefinition 151 161 114 150

Variation to Licence Conditions 203 219 249 272

Extended Trading Permits (long term extended) hours)

21 24 49 36

Extended Trading Permits (other long term) 58 70 185 303

One-off Extended Trading Permits 1234 1244 1300 1423

Approval of Manager 5774 4753 4541 4658

Protection Orders 61 92 74 49

Change of Premises Name 74 65 122 89

Position of Authority/Shareholding 128 144 148 112

Arrangement/Agreement 62 73 142 144

One-off variation of licensed area 110 101 67 56

One-off variation of licence hours 105 140 144 147

One-off variation of area and hours 22 16 15 10

Conversion: Club Restricted to full Club licence 1 1 1 1

Conversion: Hotel to Tavern or Hotel Restricted licence

0 4 1 0

Occasional 3215 3357 5001 3955

Liquor Restricted Premises N/A 49 186 196

Total 11,698 11,043 12,795 12,162

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The following table provides a four-year summary of the number of licensed premises in Western Australia as at 30 June each year. A comparison between this reporting period and the previous one shows the number of licensed premises in Western Australia has remained constant with growth of approximately one per cent in the total number of licensed premises.

LIQUOR LICENCES BY TYPES AND CATEGORIES

Licence Types 2010/11 2011/12 2012/13 2013/14

Hotel 282 273 275 272

Hotel Restricted 50 51 52 54

Tavern 374 373 389 382

Tavern Restricted 0 8 16 24

Small Bar 56 66 78 88

Liquor Store 530 536 547 557

Club 424 418 419 415

Club Restricted 545 550 560 568

Restaurant 779 782 824 867

Nightclub 45 43 44 42

Special Facility 557 577 588 581

Casino Liquor 1 1 1 1

Producer 574 567 557 544

Wholesaler 183 192 202 209

Total 4400 4437 4552 4604

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The following table provides a two-year summary of the number and nature of applications for the grant of a licence received by the Department, together with the outcome of determinations and the nature of licences cancelled and surrendered.

LIQUOR LICENCES RECEIVED AND DETERMINED, BY TYPE

Status Hotel Hotel

Restricted Tavern

Tavern Restricted

Small Bar

Liquor Store

Club Club

Restricted Restaurant Nightclub

Special Facility

Producer W’saler Total

12/13

Applications Received

1 0 7 6 15 17 2 20 64 0 28 16 14 190

Withdrawn 0 0 0 0 0 1 0 0 2 0 0 0 0 3

Refused/ Struck Out

0 0 0 0 0 4 0 0 1 0 0 0 1 6

Granted 3 1 10 8 15 14 0 17 57 0 23 16 20 184

Cancelled/ Surrendered

4 0 5 0 4 6 2 8 38 0 26 32 13 138

13/14

Applications Received

2 3 5 9 11 23 1 9 85 0 44 19 19 230

Withdrawn 0 1 0 0 0 0 0 0 2 0 6 0 0 9

Refused/ Struck Out

0 0 0 0 0 8 0 0 2 0 1 0 0 11

Granted 4 2 8 8 13 17 2 17 86 0 32 20 16 225

Cancelled/ Surrendered

1 0 6 0 2 1 5 8 22 2 35 28 8 118

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LIQUOR COMPLIANCE PROGRAM The Department undertakes regular inspectorial and audit activities to regulate the sale, supply and consumption of liquor, and to minimise harm and ill-health to the public. Additionally, inspections are undertaken to ensure that licensed premises are being operated and maintained to a standard that meets consumer expectations. To achieve this, the inspectorial program includes undertaking the following activities:

Assessing applications in relation to the proposed standard of licensed premises;

Inspecting licensed premises both in terms of standards and operations;

Assisting in the resolution of noise complaints relating to licensed premises;

Assessing and collecting licence fees; and

Investigating complaints.

Where licensed premises are being run contrary to the Act, cautions and infringements may be issued to the licensee/and or approved manager/employee. Over the reporting period, inspectors found the most common reason for the issue of a caution was a failure to maintain an Incident Register and/or Training Register, while the most common reason for an infringement was failure to have an approved manager on the premises during trading hours. A total of 127 cautions and 61 infringements were issued during 2013/14. In relation to maintaining a high standard of licensed premises, inspectors found the most common issue related to the general maintenance of the premises; such as damaged walls, floors, bars and toilets that required attention. Other matters to regularly arise during inspections related to emergency exits not being easily accessible or functioning correctly, and a lack of fire safety equipment, such as smoke alarms and approved exit signs. During the reporting period, 48 work orders were issued for such matters. Under the Act, licensed Western Australian wine producers are able to claim a liquor subsidy from the Western Australian Government in relation to the Commonwealth‟s Wine Equalisation Tax liability. As part of the 2013/14 compliance program, a total of $179,800 was repaid by producers who had claimed the subsidy in excess of their entitlement. The reporting period saw a decrease in the number of premises inspections conducted over the year which was a direct result of a temporary reduction in resources in this area. The table on page 18 provides a four-year summary of the number and nature of audits, inspections, assessments and investigations conducted, as well as the number of non compliance with legislative requirements.

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AUDITS, INSPECTIONS, ASSESSMENTS AND

INVESTIGATIONS 2010/11 2011/12 2012/13 2013/14

Compliance audits and inspections conducted 1056 1005 1407 1351

Premises inspections conducted 744 866 762 474

Subsidy claims 128 122 153 124

Returns checks completed 753 740 791 740

Subsidy audits conducted 0 0 0 21

Total 2681 2733 3113 2710

NON COMPLIANCE WITH LEGISLATIVE REQUIREMENTS

2010/11 2011/12 2012/13 2013/14

Work Orders issued 158 88 132 48

Infringements issued 73 73 123 61

Cautions issued 129 139 183 127

Breaches of the Liquor Control Act 1988 2 2 0 1

Total 362 302 438 237

Section 117 Complaints

Section 117 of the Liquor Control Act 1988 provides that a complaint may be lodged in writing with the Director of Liquor Licensing alleging that:

The amenity, quiet or good order of the neighbourhood of the licensed premises is frequently unduly disturbed by reason of any activity occurring at a licensed premises; or

The behaviour of persons on the licensed premises/noise emanating from the licensed premises/or disorderly conduct occurring frequently in the vicinity of the licensed premises is unduly offensive, annoying, disturbing or inconvenient to persons who reside or work in the vicinity, or to persons in or making their way to or from a place of public worship, hospital or school.

On receipt of a complaint an inspector will establish the facts and validity of the complaint. The investigation and evidence gathering process can be a time consuming exercise, especially if the complaint relates to an infrequent event; for example excessive noise on Sunday nights emanating from a licensed premises. Where a complaint is substantiated, an inspector will attempt to settle the matter by conciliation or negotiation. This process may result in the introduction of voluntary trading conditions. Should the conciliation process be unsuccessful, the Director may make an order or vary/impose conditions on the licence or otherwise deal with the matter.

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The following table shows the number of section 117 complaints that were handled by the Department during 2013-2014. A total of 11 complaints were resolved during the period, seven of which were successfully resolved through conciliation and mediation between the parties, two withdrawn after increased compliance activities, while a further two were referred to the Director for determination.

Complaints outstanding as at 1 July 2013 13

Complaints lodged 1 July 2013 – 30 June 2014 2

Complaints resolved 1 July 2013 – 30 June 2014 11

Total Outstanding Complaints 4

Section 95 Complaints

The Liquor Commission determines complaints and disciplinary matters in accordance with section 95 of the Liquor Control Act 1988. Complaints lodged to the Commission may be made by the Director of Liquor Licensing, the Commissioner of Police or a local government authority. The Commission will determine the validity of the complaint and impose disciplinary action if grounds exist for such a course of action. The following table shows the number of section 95 complaints that were handled by the Commission during 2013/14.

Complaints Outstanding as at 1 July 2013 5

Complaints lodged 1 July 2013 – 30 June 2014 5

Complaints resolved 1 July 2013 – 30 June 2014 (excluding withdrawal orders)

8

Total Outstanding Complaints 2

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GAMBLING REGULATION

The Gambling Regulation Division is responsible for the licensing, auditing and inspection of all gambling activities in Western Australia. The Division is divided into two sections; Licensing and Compliance.

GAMBLING LICENSING

Section 51 of the Gaming and Wagering Commission Act 1987 provides that gaming cannot be promoted or otherwise conducted for the purpose of private gain or any commercial undertaking. On behalf of the Gaming and Wagering Commission and under appropriate delegations, Gambling Division officers evaluate and determine licence and permit applications to enable community and sporting clubs to raise funds through the conduct of a variety of community gaming activities. These include standard lotteries (raffles), continuing lotteries (break-open bingo tickets), video lottery terminals (VLTs), bingo and gaming nights. In addition, people who assist in the conduct of community gaming for reward are required to hold a Gaming Operator‟s Certificate. The integrity of gaming operators is paramount in the conduct of community gaming activities, and applicants must satisfy a probity investigation in addition to demonstrating the required skills needed for working in the gaming industry. During 2013/14, 2208 community gaming permits were approved, while a total of 234 permits/certificates were issued across a number of areas relating to various gaming activities, such as the approval of premises to enable gaming activities to be conducted. The following table provides a four-year summary of the total number of gaming permits and certificates issued by the Commission. NUMBER OF GAMING PERMITS/CERTIFICATES ISSUED

2010/11 2011/12 2012/13 2013/14

Bingo 193 207 192 169

Continuing Lottery 246 249 212 194

Gaming Functions 441 462 456 437

Standard Lottery 907 879 856 936

Calcutta 41 44 51 47

Two-up 52 48 50 80

VLTS 386 382 386 345

Total 2266 2271 2203 2208

Class of Gaming Equipment 7 7 5 6

Item of Gaming Equipment 3 3 3 2

Approval of Premises 135 164 153 196

Gaming Operator‟s Certificate 42 34 26 21

Supplier‟s Certificate 7 9 8 9

Total 194 217 195 234

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During 2013/14 a gross amount of approximately $62.3 million was raised by permit holders during the reporting period, this represents a 10 percent increase in gross revenue generated by permit holders since 2011/12. Following the deduction of expenses associated with running the event, a net amount of approximately $21.5 million was returned to beneficiary organisations for the active promotion, support or conduct of sporting, social, political, literary, artistic, scientific, benevolent, charitable or other similar activities within the Western Australian community. This represents a 22 percent increase in net proceeds being returned to charities compared with 2011/12. The following table provides a three-year summary of the total gross and net revenue raised by gaming permit holders over the past three years.

COMPARISON OF GROSS AND NET REVENUE RAISED BY GAMING PERMIT HOLDERS

2011/12 2012/13 2013/14

Gross Net Gross Net Gross Net

Bingo $5,692,579 $799,015 $5,587,866 $375,101 $5,378,510 $594,019

Continuing Lottery

$7,310,059 $1,473,857 $6,245,089 $1,289,290 $5,824,688 $1,156,485

Gaming Functions

$2,977,872 $466,259 $2,921,635 $447,553 $3,652,391 $444,596

Standard Lottery

$30,878,560 $13,613,067 $34,838,005 $15,792,721 $36,672,333 $18,267,647

Calcutta $510,907 $135,320 $500,938 $99,208 $513,131 $80,066

Two-up $44,875 $24,392 $43,800 $23,018 $87,609 $39,084

VLTs $9,125,835 $1,113,594 $8,384,101 $1,003,435 $10,206,471 $935,881

TOTAL $56,540,687 $17,625,504 $58,521,434 $19,030,326 $62,335,133 $21,517,778

The Gambling Regulation Division is also responsible for the issue of licences and permits to allow persons to work in:

Licensed positions at Crown Casino Perth;

Licensed positions at Racing and Wagering Western Australia; and

Bookmaking operations.

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Licensing Casino Employees and Casino Key Employees

In order to maintain public confidence in those involved in providing gaming activities at Crown Perth, all people who have managerial responsibilities (casino key employees) or have duties that support the licensed casino (casino employees – such as croupiers, surveillance operators, security officers and so on) must be licensed under the Casino Control (Burswood Island) (Licensing of Employees) Regulations 1985.

The following table provides a four-year summary of the total number of licences in operation.

CASINO EMPLOYEE LICENSING

2010/11 2011/12 2012/13 2013/14

Casino Key Employee 378 376 417 408

Casino Employee 1686 1720 1895 1839

Total 2064 2096 2312 2247

Licensing RWWA Directors and Key Employees

In accordance with the provisions of sections 14 and 24 of the Racing and Wagering Western Australia Act 2003, the following table provides a four-year summary of the total number of licences in operation at Racing and Wagering Western Australia

RWWA EMPLOYEE LICENCES 2010/11 2011/12 2012/13 2013/14

Directors 12 11 11 11

Key Employee 72 73 72 76

Total 84 84 83 87

Licensing Bookmaker Operations

Bookmakers and bookmakers‟ employees are required to be licensed in accordance with the Bookmakers Betting Levy Act 1954. The following table provides a summary of the total number of licences in operation over the past four years. It can be seen that the number of licences has declined over the past four years, which is a result of increased competition with large out-of-State corporate and online bookmakers.

BOOKMAKER LICENCES 2010/11 2011/12 2012/13 2013/14

As at 30 June 49 45 40 38

BOOKMAKER’S MANAGER LICENCES 2010/11 2011/12 2012/13 2013/14

Issued 3 2 1 1

Expired 0 0 0 0

BOOKMAKER’S EMPLOYEE LICENCES 2010/11 2011/12 2012/13 2013/14

Issued 44 33 50 36

Expired 26 26 54 39

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Racing Bets Levy Returns

The Gaming and Wagering Commission collects and disburses the racing bets levy paid by betting operators who use Western Australian race fields as part of their betting operations. In this regard, the Commission remits all levies (less a monthly administration fee) to Racing and Wagering Western Australia (RWWA) for distribution among all WA registered racing clubs.

For 2013/14, the Commission remitted a total of $ 3 3 . 1 million in Racing Bets Levy to RWWA. Since the introduction of the racing bets levy scheme (applicable retrospectively to 1 September 2008), the Commission has remitted $157.2 million to RWWA for distribution to the WA racing industry.

GAMBLING COMPLIANCE PROGRAM

On behalf of the Gaming and Wagering Commission the Department undertakes inspectorial and audit activities in regulating the lawful conduct of gambling activities permitted under Betting Control Act 1954, the Casino Control Act 1984, the Gaming and Wagering Commission Act 1987, and the Racing and Wagering Western Australia Act 2003.

Inspectorial activities performed by the Gambling Regulation Division include:

Casino surveillance;

Inspection and auditing of financial returns in relation to permitted gaming activities;

Inspection of race day activities; and

Audits of TAB agencies.

The following table provides a four-year summary of the number and nature of audits, inspections, assessments and investigations conducted by the Commission. A breakdown of these figures is provided in the subsequent table.

In 2013/14, the Commission moved to electronic and system-based monitoring of electronic gaming machines, subsequently removing the need to physically inspect each machine to ensure compliance. This resulted in a reduction of inspections, as can be seen below. Similarly, the casino revenue verification process was also amended to remove the need for inspectors to attend every physical count of cash; instead, revenue is calculated and verified using an approved, tested and certified information system. This change also resulted in a reduction of inspections from previous years.

AUDITS, INSPECTIONS, ASSESSMENTS AND INVESTIGATIONS

2010/11 2011/12 2012/13 2013/14

Racing 535 333 323 522

Lotterywest 761 754 706 756

Community Gaming 747 398 364 280

Casino 5483 3714 3726 3021

Total 7526 5199 5119 4579

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The following table provides a four-year summary of the number of compliance activities undertaken by the Gambling Regulation Division.

INSPECTORATE PROGRAM 2010/11 2011/12 2012/13 2013/14

Wagering

Bookmaker telephone betting inspections 5 0 16 18

Bookmaker licensing and equipment checks 3 0 1 1

Bookmaker betting operations inspections 3 0 1 1

TAB agency inspections and cash counts 247 144 180 371

On course tote inspections and audits 54 1 2 4

Sports betting contingency audit 0 0 0 0

Race fields bet levy return audits 7 3 0 0

Racing industry GST reimbursement claims received 180 156 79 92

Racing industry GST reimbursement audits conducted 0 3 0 1

Lotterywest

Cash 3 draw verification 364 366 365 365

Lotto/Soccer Pools draw verification 364 366 312 365

Promotional draws verification 24 13 18 18

Lotterywest GST reimbursement claims received 9 9 11 8

Lotterywest GST reimbursement audits conducted 0 0 0 0

Community Gaming

Gaming inspections performed 56 149 198 154

Gaming investigations conducted 380 16 15 4

Gaming audits conducted 223 150 91 90

Casino

Equipment checks completed 6 0 0 0

EGM Prom and seal checks completed 2871 1380 2564 403

Daily revenue figures calculated 365 366 363 365

Illegal activity detected 0 0 6 10

Casino audits and inspections completed 1497 1252 7 1476

Hard and soft cash counts completed 676 677 725 726

Casino GST reimbursement claims received 12 10 12 12

Submissions to the Gaming and Wagering Commission

Racing industry 4 6 7 2

Racing and Wagering WA 32 20 37 32

Gaming 73 67 41 27

Casino 56 29 49 29

Gaming Compliance issues 15 16 19 5

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STRATEGIC REGULATION The Strategic Regulation Division is responsible for leading the policy, legislative, communications and regional engagement strategies in relation to the Western Australian liquor and gambling industries. The Division consists of Policy, Media and Communications, Customer Service, and Community Engagement teams. During the reporting period, the Policy and Media and Communications areas:

Progressed 25 legislative amendments across the suite of legislation administered by the Department;

Reviewed 37 liquor and gambling polices;

Provided ministerial support through the preparation of more than 200 requests for draft ministerial correspondence, briefing notes and parliamentary questions;

Undertook executive support roles to the Gaming and Wagering Commission, Problem Gambling Support Services Committee and Gaming Community Trust;

Responded to 146 media enquiries; and

Produced a number of publications, including the quarterly online magazine RGL Form.

In raising awareness of the legislation administered by the Department, the Customer Services and Community Engagement areas delivered a significant number of presentations to liquor licence holders, prospective applicants, community groups and other stakeholders throughout the metropolitan and regional areas of the State. Education and Advisory officers are the primary resource for the Department in face-to-face dissemination of information on legislative requirements and changes to external stakeholders and peak industry bodies. The information for external stakeholders is delivered in both metropolitan and regional areas by the Education and Advisory Officers, Manager Customer Services and Community Engagement Officer. These officers also attend various Liquor Accord meetings, visit/contact new licensees and present seminars and workshops to industry and interest groups to provide an overview of liquor, gaming and casino legislation.

During the reporting period, 298 new licensee visits/contacts were made and 62 seminars on “The liquor licensing process for applicants and community”, “Compliance with the liquor laws”, and “Community gaming‟ were conducted. The Customer Services team offers front counter, e-business and education, and advisory services for the Department. Front counter staff attended to 5938 face-to-face customer and

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stakeholder enquiries in relation to understanding the legislative requirements for liquor, gaming and casino applications. E-business officers provide assistance to external stakeholders for legislative requirements and online lodgement processes relating to approved managers, occasional liquor licences and racing bets levy. During the reporting period, the Department‟s e-business team received 3788 calls for assistance.

ADMINISTRATIVE LAW The Administrative Law Division determines applications that are subject to the public interest test contained in section 38(2) of the Liquor Control Act 1988.

An important focus of the Administrative Law Division is to ensure procedural fairness in the licensing authority‟s procedures, by providing parties with a reasonable opportunity to present their case. As such, the decision-making process employed by the Division includes weighing and balancing the sometimes competing interests of applicants, interveners and objectors, in order to determine a matter in a manner that is consistent with the Act‟s public interest provisions, the interpretation of the law by the courts and in a manner that promotes the objects of the Act.

While the Division‟s primary focus is on delivering complex liquor licensing determinations, it also provides authoritative advice on more difficult liquor licensing matters. In determining applications in accordance with the statutory delegation afforded to them by the Director of Liquor Licensing, decision-makers deliver ethical decisions that build public trust in the integrity of the liquor licensing process. Key matters for determinations are applications for:

The grant or removal of licences;

Extended trading permits for on-going extended hours;

Extended trading permits for liquor without a meal under a restaurant licence; and

Adding, cancelling or varying the trading conditions of a licence.

Another key area of decision-making relates to determining whether applicants (or other relevant persons) are fit and proper to:

Hold a licence or a position of authority in a body corporate that holds a licence;

Be approved as a restricted or unrestricted manager;

Be directly or indirectly interested in or in the profits or proceeds of, a business carried on under a licence.

The Administrative Law Division also provides executive support services to various tribunals and commissions supported by the Department.

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SIGNIFICANT ISSUES IMPACTING THE AGENCY

REVIEW OF THE LIQUOR CONTROL ACT 1988

In December 2012, the Minister for Racing and Gaming announced a review of the Liquor Control Act 1988 and appointed John Atkins, Ian Stanley and Nicole Roocke to the review committee. The committee considered matters relevant to the operation and effectiveness of the Act, while having regard to changing community needs and attitudes relating to the accessibility of liquor and related services.

The committee received 149 written submissions regarding the review and conducted more than 30 meetings with industry stakeholders. These included industry participants, representative groups, WA Police, government agencies, health groups, and members of the legal fraternity. The committee also travelled to New Zealand, New South Wales and Victoria to meet with licensing authorities, police and industry representative groups in those jurisdictions.

In January 2014, the committee presented its report, containing 141 recommendations relating to both legislative amendments to the Act and operational matters, to the Minister for Racing and Gaming.

The report is available from: http://www.rgl.wa.gov.au/ResourceFiles/Publications The Minister recently finalised consultation with industry stakeholders and representative groups regarding the recommendations contained in the report, and will submit the Government‟s liquor reforms to Cabinet later this year.

AMENDMENTS TO GAMBLING LEGISLATION

On 1 July 2013, Cabinet approved drafting of amendments to the:

Racing and Wagering Western Australia Act 2003;

Gaming and Wagering Commission Act 1987;

Betting Control Act 1954; and

Casino Control Act 1984.

The major objectives of the amendments were to:

Implement the recommendations of the Joint Standing Committee on the Review of the Racing and Wagering Western Australia Acts;

Reduce the regulatory burden on business and the community;

Introduce additional consumer protection measures in respect of responsible gambling matters; and

Align with other Australian jurisdictions, the application of “bet backs” in relation to wagering operations under the racing bets levy scheme.

The first draft Amendment Bill containing the proposed amendments was received in July.

http://www.rgl.wa.gov.au/ResourceFiles/Publications/23-12-2013%20-%20Liquor%20Control%20Act%201988%20–%20Review%20Report.pdf

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PUBLIC INTEREST ASSESMENTS

As in previous years, the need for the licensing authority to weigh and balance the evidence submitted by applicants, interveners and objectors in determining liquor licence applications continues to be a challenge for the licensing authority. An applicant, when applying for a licence, must satisfy the licensing authority that the granting of an application is in the public interest in accordance with sections 33 and 38 of the Liquor Control Act 1988. When making a decision, the reference to “public interest” indicates that both sections 5 and 38 of the Act are relevant. In this regard, the primary objects of the Act are set out in section 5. These are to:

Regulate the sale, supply and consumption of liquor;

Minimise harm or ill-health caused to people, or any group of people, due to the use of liquor; and

Cater for the requirements of consumers for liquor and related services, with regard to the proper development of the liquor industry, the tourism industry and other hospitality industries in the State.

In considering the primary objects of the Act, there is a requirement for the licensing authority to weigh and balance the competing interests with respect to minimising harm or ill-health and catering for the requirements of consumers and related services. For example, while an applicant has the ability to put forward a case to the licensing authority to increase the availability of liquor, this may result in an increased level of harm. In this regard, when determining an application the licensing authority will consider the harm or ill-health that may be caused due to the use of liquor. When considering harm or ill-health matters, the licensing authority will have regard to the Supreme Court decision relating to Executive Director of Health v Lily Creek International Pty Ltd & Ors [2000] WASCA 258, where Justice Ipp stated: “The potential of harm or ill-health to people, irrespective of whether the harm or ill-health is proved on the balance of probabilities, would be a powerful public interest consideration.” Furthermore, as explained by Justice Wheeler in Executive Director of Health v Lily Creek International Pty Ltd & Ors [2001] WASCA 410: “…it is not the “risk” of harm in some abstract sense which is relevant, but rather the risk having regard to the proved circumstances of the particular area in relation to which the application is made.” With respect to proceedings before the licensing authority, the Act provides an opportunity for the Commissioner of Police and Executive Director Public Health to intervene for the purpose of introducing evidence or making representation to relevant matters. There is no onus on an intervener to establish assertions of fact or opinion contained in the intervention. Additionally, any person has the right to object to an advertised application. However, the burden of establishing the validity of any objection lies with the objector.

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Important precedent decisions handed down by the Liquor Commission must be considered when determining an application. Previous determinations handed down by the Commission have established that a Public Interest Assessment must be supported by objective evidence. Assumptions, opinions, speculation and generalised statements alone do not demonstrate that an application is in the public interest. Further, when determining an application, the licensing authority must also be mindful of the standard of the application lodged. In this regard, consideration needs to be given to the Commission‟s determinations, such as the following:

LC 27/2013-Woolworths Limited, Margaret River

“Outlet density per se is not a matter of itself that is prescribed by the Act as requiring direct consideration by the licensing authority but is relevant in assessing where the public interest lies and in meeting the objects of the Act.”

LC 26/2014-Springbok Foods Pty Ltd

“The nature of the questions in the witness petitions about the public interest and minimising harm or ill-health to anyone in the locality are of limited value as there is no evidence that the petitioners are aware of the importance of these terms in the context of the Act. “The convenience of purchasing liquor products with other food and grocery products in the same store in the circumstances of this application is not, of itself, a persuasive factor in demonstrating a consumer requirement for liquor and related services as envisaged by section 5(1)(c) of the Act. “The determination of the size of the locality for the purposes of a licence application will very much depend on, amongst other things, the type of licence applied for, the nature of the business and its target market, and the size and nature of the proposed premises. Kalahari – A Taste of Africa is a relatively small liquor outlet, however, it operates in a similar market, offering specialised South African liquor and grocery products. “The Commission accepts the Director’s submission that the licensing authority is not constrained by a 2 km radius locality when considering whether the proposed licence will cater for the requirements of consumers for liquor and related services. Locality is only referred to in the Act in sections 38(4)(b) and 74(1)(g)(ii) relating to impact on the amenity of the locality.”

LC 28/2014- Mad Mex Fresh Mexican Grill Pty Ltd

“The size of the premises is not determinative. The business model is not determinative. The toilet facilities are not determinative. The number of seats is not determinative. The number of patrons who take away or eat on premises at a particular time and occasion is not determinative. But each and all of those factors, considered in their totality, lead the Commission to that conclusion.”

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LC17/2010 - Busswater Pty Ltd v Director of Liquor Licensing

“In considering the public interest under section 38, the licensing authority needs to consider both the positive and negative social, economic and health impacts that the grant of an application will have on a community (refer Second Reading Speech, Parliamentary Debates, WA Parliament, vol 409, p 6342). In determining the positive aspects of an application, mere opinions expressed by an applicant as to the perceived benefits of the grant of their application, in the absence of supporting evidence, falls well short of the level of evidence required to substantiate such a claim…Statements by applicants, without supporting evidence, cannot be construed as facts. ...letters of support from business people purporting to speak on behalf of consumers simply does not go far enough to satisfy the Commission that the general public has a requirement for liquor and related services...”

LC26/2010 - Shallcross Investments Pty Ltd v Director of Liquor Licensing

“The licensing authority cannot run an application, objection or intervention on behalf of the individual parties because to do so would place the licensing authority in an unsustainable position.‟

LC44/2010 - Harold Thomas James Blakeley v Director of Liquor Licensing

“The Commission has previously observed that it is not sufficient for an applicant merely to express opinions and make assertions about the perceived benefits of their application. Such opinions and assertions must be supported by an appropriate level of evidence (refer Busswater Pty Ltd v Director of Liquor Licensing LC 17/2010). …in the absence of other supporting evidence which is relevant, reliable and logically probative, the Commission finds that this applicant has failed to satisfy the Commission that the grant of the licence is in the public interest as required under s38(2) of the Act.”

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LIQUOR COMMISSION DECISIONS AND SUPREME COURT CHALLENGES

The Commission continued to make a number of significant decisions during the reporting period. Below are the high profile decisions made by the Commission.

The following table shows the number of reviews sought at the Liquor Commission of a decision made by the Director of Liquor Licensing, and the number of applications referred to the Liquor Commission by the Director.

MATTERS INVOLVING BOTH THE DIRECTOR AND THE LIQUOR COMMISSION

Number of reviews to the Liquor Commission carried over from previous year 2

Number of reviews lodged with the Liquor Commission during the year 22

Number of reviews heard by the Liquor Commission during the year 17

Number of reviews carried over to 2014/15 16

Number of applications referred by the Director to the Liquor Commission carried over from previous year

6

Number of applications referred by the Director to the Liquor Commission during the year

0

Number of applications referred by the Director to the Liquor Commission heard during the year

0

Number of applications referred by the Director to the Liquor Commission carried over to 2014/15

2

Liquor Commission Decisions Busselton liquor stores

This decision deals with two applications for liquor stores in Busselton (IGA and Woolworths), which were originally granted by the delegate of the Director of Liquor Licensing. The applications were heard together, and a review was subsequently sought by objectors to both applications.

The decision to hear the applications together by the Commission was based on the fact that both applications were for premises in reasonable proximity to each other and therefore pursuant to section 16(12) of the Liquor Control Act 1988 the evidence relating to one application was evidence relating to the other.

The submission and documentation lodged before the Director for IGA were examined by the Commission and a fair summary was contained in the written reasons of the delegate of the Director, some of which is set out below:

The applicant seeks to establish a small scale liquor store set within the IGA retail area of the Busselton Central Shopping Centre. The proposed liquor store will consist of approximately 120sqm of patron walk through display area and an adjoining cool room.

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The applicant proposes to provide one stop shopping convenience to the public who use the shopping centre. The applicant’s Public Interest Assessment (PIA), lodged in support of the application, provided information on the proposed manner of trade, the style and layout of the premises, the demographics and socio-economic profile of the locality and the matters contained in section 38(4) of the Act. In summary, it was submitted that this is an application for a small scale liquor store in a substantial, quality supermarket contained within a large and popular shopping centre in the fast growing town of Busselton.

The submission on behalf of the Executive Director Public Health were summarised by the delegate of the Director as follows:

The Executive Director Public Health (EDPH) lodged a Notice of Intervention in respect of the IGA application for the purpose of making representations regarding trading conditions that are likely to minimise alcohol-related harm by ensuring that the sale of packaged liquor within the existing regional community supermarket is separated from general grocery items. The EDPH was of the view that because the proposed licensed premises will be located within the grocery area of the IGA supermarket, there is an increased risk of exposure of children and young people to alcohol, positioning it as an ordinary commodity.

The EDPH recommended a number of conditions be imposed on the operation of the licence if the application is approved. The submission and documentation lodged before the Director for Woolworths were examined by the Commission and a fair summary was contained in the written reasons of the delegate of the Director, some of which is set out below as follows:

A large, new Woolworths supermarket is being established as part of a new retail development constructed on land between Kent and Duchess Streets in Busselton. It is submitted that the supermarket, totalling over 4761 m2, will be one of the largest and modern Woolworths supermarkets in Australia. This new supermarket will update and replace the existing Woolworths supermarket in Busselton and it will be considerably larger than the existing supermarket and provide a range of new services. The applicant’s Public Interest Assessment (PIA) lodged in support of the application provided information on the nature of the locality in which the premises is to be located, the demographics and social health profile of the area, and information on the existing packaged liquor outlets.

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The submission of the Commissioner of Police was outlined by the delegate of the Director as follows:

The Commissioner of Police lodged a Notice of Intervention in respect of the Woolworths application to express concerns that the existing level of alcohol-related harm in Busselton may increase if another packaged liquor outlet is established in the area.

According to the Commissioner of Police, there were 992 reported crimes in Busselton between January 2011 and July 2012, of which 63 were alcohol related. In view of the existing number of liquor outlets in Busselton, the grant of a further liquor store licence may increase the consumption of alcohol in the area and result in an increase in alcohol-related harm. If the application is approved, the Commissioner of Police recommends that appropriate conditions be imposed on the operation of the licence.

The objections to the applications were made on the following grounds, namely that the granting of the applications:

Would not be in the public interest;

Would cause undue harm or ill-health to people, or any group of people due to the use of liquor;

Would cause undue offence, annoyance, disturbance or inconvenience to persons in or travelling to or from an existing or proposed place of public worship, hospital or school; (only relates to the second application)

Would impact on the amenity, quiet or good order of the locality in which the premises are situated; and

Would be contrary to the Act.

In seeking a review of the Director‟s decision, the objectors lodged their grounds for that review under the following headings:

Denial of procedural fairness; The Objectors lack of objective evidence; Anti-needs test;

Growth in Busselton;

Convenience;

Outlet density;

Harm and ill-health;

Intervention by the Executive Director Public Health;

Woolworths supermarkets; and

Conclusion.

In making its decision, the Commission determined it was satisfied that each of the applications for liquor store licences satisfied the public interest test articulated in section 38(2) of the Act and that the objections to each application were not made out.

The decision of the delegate of the Director granting the applications for liquor store licences made by both applicants was therefore affirmed.

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Margaret River liquor store licence granted

An application that was lodged by Woolworths for the conditional grant of a liquor store licence in Margaret River was referred to the Commission under section 24 of the Liquor Control Act 1988. A total of 29 objections to the application were received. The applicant sought to operate a relatively small liquor store of approximately 165m2 forming part of a Woolworths supermarket at 49 Town View Terrace, Margaret River. The applicant argued that Margaret River was an important regional town which has experienced significant growth in the past decade. While the resident population of the region has grown to approximately 5800 and 1,570,900 visitor nights per year in 2011, the retail packaged liquor services and facilities had not changed since 1997. The applicant claimed that the three licensed venues authorised to sell packaged liquor were insufficient to provide adequately for the diverse packaged liquor requirements of the vast volume of consumers who live in or visit the Margaret River area. The largest group of objectors consisted of existing licensees and residents. The grounds cited for the objections were essentially that:

a) the application was not in the public interest; and that;

b) the grant of the application would cause undue harm or ill health and the amenity would be lessened.

The evidence submitted on behalf of the objectors was extensive and largely related to the existence of the “Margaret River Brand” and how the brand would be damaged by granting the application. The applicant claimed that the “real” objectors to the application were competitor licensees, and that all other objections relied on the same grounds of objection, relied on the same particulars and evidence to support the grounds of objection, and were repetitious of each other – and as such ought to be treated as a single objection. Furthermore, the applicant said much of the material presented by the identical objectors had little substantive or factual evidence of any real or actual issues and much was misconceived, exaggerated and emotive. In assessing the application, the Commission made it clear that the commonly held view of all parties was that Margaret River “included not only the township but the surrounding region which includes a large number of wineries offering cellar door sales, diverse food offerings and other tourist attractions”.

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On this definition, the resident population is approximately 12,000 but there is a large transient population of tourists/holiday makers/visitors (some 1.5 million bed nights per annum and 750,000 day trippers per annum). Thus in any assessment of where the public interest lies, not only residents but the high volume of visitors must be taken into account as constituting „the public‟, given the nature of the region as a major destination for tourists. The Commission found that objectors provided little evidence that the grant of the application would lead to undue harm and ill health (actual or potential) but relied on the supposition that the applicant would supply cheap liquor which would result in increased harm and ill health. The real focus of the class case was on the “brand” or image of Margaret River state-wide, nationally and internationally. This brand or image had been built up carefully over time and focused on a quality product and quality visitor experience. It was argued that the establishment of a “national chain” outlet would seriously diminish if not destroy this carefully built branding. The Commission accepted that Margaret River was a “special area” with a distinctive branding and quality image. However, the Commission did not accept that the establishment of this relatively moderate sized outlet as an adjunct to a supermarket would damage the carefully cultivated image of the Margaret River Township and the Margaret River wine region. In fact, there was little cogent evidence submitted to suggest that it would. The objectors‟ case was predicated more on emotion than demonstrable outcomes. Granting a licence would increase the packaged liquor floor space in Margaret River and self evidently outlet density but this did not in itself mean that the granting of the application would be contrary to the objects of the Act and/or not in the public interest. One of the primary objects of the Act pursuant to section 5 is to minimise alcohol-related harm, while another is to cater for the requirements of consumers for liquor and related services. Where there is conflict between the various objects of the Act, the licensing authority needs to weigh and balance those competing interests. It is relevant to note that Ipp J in Lily Creek (supra) observed that it is significant that the primary object in section 5(1)(b) is to “minimise” harm or ill-health, not to prevent it absolutely. There was no compelling evidence before the Commission to indicate that the population in Margaret River suffered from unacceptable levels of existing alcohol related harm. In assessing the application, the Commission held that granting the licence would be consistent with the objects of the Act and given the particular local, social, demographic and geographic circumstances of this application, on the balance of probabilities there was little likelihood that the granting of this licence located in a shopping centre, would result in any negative impact on the amenity of the area.

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The Commission was satisfied that the applicant has discharged its onus under section 38(2) of the Act and that granting the application is in the public interest. Accordingly, the application was granted. NB: A similar application to the above by Coles was granted on the same day as this decision was handed down.

Manjimup liquor store decision quashed

An application by Woolworths for the review of a decision made by the delegate of the Director of Liquor Licensing to refuse a liquor store licence in the country town of Manjimup was successful during the reporting period. The review, made under section 25 of the Liquor Control Act 1988 and was held on November 28, 2013, was for a 156m2 retail floor space within a Woolworths Supermarket. As part of its application, the applicant claimed that none of the existing liquor outlets in Manjimup had a close association with a major supermarket, and the proposed liquor store would provide the convenience of one-stop shopping for customers of the new supermarket and shopping centre. It was submitted that a primary object of the Act was to minimise, not eliminate harm and the proper development of the liquor industry was also a key factor to be considered under the objects. The applicant questioned a number of the statistics submitted by the objectors pointing out that in some cases they were not based on data specific to Manjimup. In lodging the application for a review of the decision of the Director to refuse a conditional grant for a liquor store licence, fourteen grounds for the application were submitted. The grounds generally being that the Director of Liquor Licensing erred in law and reached incorrect findings in respect to the material before him when making the decision. The applicant submitted that:

a. many of the conclusions reached by the Director were uncertain;

b. there was no basis for any conclusion other than the level of alcohol related harm in the town was consistent with that tolerated within the community;

c. there was no evidence that the granting of the application would increase this level; and

d. the benefits of granting the application outweighed any detriment.

Considerable comment was submitted in relation to conclusions reached by the Director relating to harm and ill-health issues associated with the application. Those conclusions were reached on the basis of the materials relied upon by the objectors.

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Regarding the position taken by the licensee objectors as to the presence of existing high levels of alcohol related harm and ill-health, this was both obviously self-serving and hypocritical. The self-serving nature of the licensee objectors‟ claims also ought to be acknowledged when considering assertions that the premises will be adjacent to sensitive premises, by which reference is made to the offices of the Department for Child Protection. There is nothing in the material relied upon that provides evidence that the office is, in fact, used by anyone other than departmental staff. Furthermore, data submitted by the objectors with respect to the effects of alcohol on the Manjimup community was closely analysed and was deemed inconclusive, general in nature, marginal in its findings and/or lacking a nexus between the grant of the proposed licence and the advent of alcohol related harm. In conducting a review, the Commission is not constrained by a finding of error on the part of the Director, but is to undertake a full review of the material before the Director and make its own decision on the basis of those materials. In support of the application, the applicant provided a petition signed by approximately 400 people together with 30 questionnaires completed by community members. The Commission considered the material submitted by the applicant and was satisfied that the granting of the application would be consistent with object 5(1)(c) of the Act, which is: to cater for the requirements of consumers of liquor and related services with regard to the proper development of the liquor industry, the tourism industry and other hospitality industries in the State.

The primary case of the objectors was the potential harm and ill-health impacts that the granting of this licence would cause. While the Commission was mindful of the possible vested commercial interests of the licensee objectors, these objections were dealt with on their merits and in association with those lodged by the incorporated groups and individuals. The Commission found it difficult to accept that the statistical data referred to by the objectors, and presented in the report “Impact of Alcohol on the Population of Western Australia”, could be specifically applied to demonstrate a nexus between higher alcohol-related hospitalisations and the number of packaged liquor outlets in the Manjimup locality. The data referred to was collected from regional or statistical local areas and went beyond the defined locality of this application. Manjimup‟s packaged liquor store ratio per population would change from one to 3333, to one to 2500 if the licence was granted. This was not considered to be inconsistent with the outlet density of Bunbury and Busselton, yet the Standard Rate Ratio data differs considerably.

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However, the Commission was obliged to consider the likelihood of harm and ill-health being caused by the grant of the application and was well aware of the academic research and reports that address the issues of outlet density and alcohol related harms. In doing so, the Commission was not persuaded that the locality of Manjimup would be subject to an unacceptable level of increase in alcohol related harm and ill-health as a consequence of the granting of this application. The Commission found that the evidence submitted in support of the grant satisfied the public interest test. The Commission also found that the benefit in increased competition, range of products and diversity of choice outweighed the potential harm that may result from the grant of the application. Further, it found that the objections to the application had not been made out. Accordingly, the decision of the Director refusing the application for the conditional grant of a liquor store licence was quashed.

City ordered to pay nightclub costs

In a first for the Commission, a local government authority was ordered to pay costs to a nightclub licensee during the reporting period.

The City of Rockingham had originally made complaints against Tocoan Pty Ltd, trading as Zelda‟s Nightclub, pursuant to sections 95 (disciplinary) and 117 (relating to noise or behaviour) of the Liquor Control Act 1988.

On 28 February 2012, the day before the hearing of the section 117 complaint, Council filed an appeal against the decisions of the Commission on February 7, 20 and 23, precluding Council from adducing further evidence on the hearing of the sections 95 and 117 complaints. The appeal and the substantive complaints, which were heard separately by the Commission, were dismissed on the basis that there was insufficient evidence in support of both matters. The licensee then made an application for costs in respect to the section 95 hearing, the section 117 hearing, and the interlocutory applications and appeal that required determinations prior to the hearing. The Commission concluded that while the section 95 and 117 complaints could not be deemed lacking in merit to be deemed to be vexatious or hopeless, the interlocutory applications and appeal lodged on February 28, 2012 were vexatious in the sense that the applications were bound to fail on previous orders made by the Commission. On 27 February 2013, Commissioner Seamus Rafferty (LC 27/2013), granted costs in favour of Tocoan Pty Ltd for interlocutory applications lodged by the City during the course of section 95 and 117 proceedings before the Commission, and a subsequent appeal instituted by the City on 28 February 2013, against the decisions of the Commission to disallow further evidence in the proceedings.

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In granting the costs in favour of Tocoan Pty Ltd, Commissioner Rafferty observed that having regard to the various orders made by the Commission, the applications and the appeal were foredoomed to fail and that they were vexatious in the sense that there was no merit to the applications and that they were unarguable. The City appealed this decision of a single Commissioner to a full panel of three Commissioners. Tocoan Pty Ltd also lodged a counter appeal on the basis that the Commission erred in not awarding costs in the section 117 proceeding, those proceedings being properly characterised as “vexatious”. By way of written submissions, solicitors for Tocoan set out the manner in which this matter should proceed and a schedule of costs. Submissions on behalf of the City were also initially filed but, due to a change in legal representation, the City was granted leave to file supplementary submissions, which was done on February 17, 2014. In determining the quantum of costs to be awarded, it was submitted that the Commission should apply the hourly rate for legal practitioners approved in the Legal Practitioners (District Court Appeals) (Contentious Business) Determination 2010. However, as the Liquor Commission is not a court, it was not considered appropriate for the Commission to adopt scales of rates allowable for legal costs in the District or Supreme Courts. Furthermore, there is no provision in the Liquor Control Act 1988, Liquor Control Regulations 1989 or Liquor Commission Rules 2007 as to the maximum allowable rate permitted for a senior practitioner. Accordingly, the submissions of the City were adopted and used to determine the issue of quantum of costs by applying the Legal Practitioners (State Administrative Tribunal) Determination 2010. The full panel in its decision (LC 44/2013) concluded that Commissioner Rafferty erred in that he should have found that the continuation of the section 117 proceedings following the section 95 hearing was vexatious and therefore made orders for the payment of costs by the City from the time following the section 95 hearing. Ultimately, the appeal by the City was dismissed and costs granted in favour of Tocoan Pty Ltd for the interlocutory applications, the appeal proceedings commenced on 28 February 2013, section 117 proceedings and the appeal to the full panel. In total, Tocoan Pty Ltd was awarded $15,840 in costs.

Zelda’s nightclub licence cancelled

In one of its last decisions of the reporting period, the Liquor Commission cancelled a nightclub licence (Tocoan Pty Ltd), and permanently disqualified the director of the company from being the holder of a position of authority in a body corporate that holds a licence and from being interested in or in the profits or proceeds of, a business carried on under a licence. On November 22, the Commissioner of Police filed a complaint pursuant to section 95 of the Liquor Control Act 1988 alleging there was cause for disciplinary action against Tocoan Pty Ltd, the licensee company of the premises known as Zelda‟s Nightclub and its approved manager.

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At the March 12, 2014 hearing, Police set out a history of complaints laid against the respondents and a detailed summary of the various provisions of the Act applicable to this complaint. The following four grounds were relied upon by the complainant in this matter:

1. The continuation of the licence is not in the public interest (s 95(4)(j));

2. The licence has not been exercised in the public interest (s 95(4)(j));

3. The safety, health or welfare of persons who resort to the licensed premises is endangered by an act or neglect of the licensee (s95(4)(k)); and

4. A person holding a position of authority in a body corporate that holds the licence, or who is interested in the business or the profits or proceeds of the business is not a fit and proper person to hold that position or to be so interested (s95(4)(h)).

In addition to evidence relating to serious assaults occurring at the premises, the material lodged by Police also included evidence relating to various reports of apparent criminal activities taking place at the licensed premises. The complainant‟s supporting material also included data on police and ambulance attendances at the licensed premises. Police provided the details of three specific incidents that occurred at the licensed premises in grounds 1, 2 and 3 of the complaint. Firstly, an assault occurred inside the premises on June 22, 2013 where a patron had been consuming alcohol and was approached by two other males, resulting in an unprovoked assault. The victim in this case sustained a broken jaw and nose. It was submitted that both the offender and victim were drunk at the time. Secondly, on November 23, 2012, an approved manager recorded in the Zelda‟s Incident Register an incident where a patron was caught selling drugs on the premises; the patron was removed and no attempt was made to contact the police. Police submit this matter was significant and the approved manager neglected his duty by not contacting police. Thirdly, on August 17, 2013 the security register reveals a patron dropped a bag of cannabis in front of crowd controllers when going outside the premises. Action taken was to dispose of the cannabis in a rubbish bin and the males were not permitted re-entry. Police claim the actions of crowd controllers constituted an offence by taking possession of the drugs and disposing of them. Furthermore, no attempt was made to contact police or provide any CCTV or ID scanner details of the patron involved.

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In addition to the three specific incidents, the complainant noted that the incident register revealed that on at least four separate occasions, patrons were removed for being found asleep either at the bar or in other areas at the venue, indicating high levels of drunkenness. The Commission found there was a consistency in statistical evidence pointing to a high level of incidents in the immediate vicinity of, and inside the premises, including criminal acts, which sustained the view that violence and anti-social behaviour was occasioned by patrons of the premises. A review of the incident register as well as security incident registers required to be maintained by staff and security found a discrepancy of 190 reports not being accurately transcribed during a 14-month period. Police claimed “The lack of sound management practices, the culture of uncooperative staff when being dealt with by police investigating offences, the permissive attitude of excessive alcohol consumption and offending on the licensed premises has been the catalyst for several previous complaints against this licensee pursuant to Section 95 of the Act. This level of unprofessionalism has extended to the detriment of patrons resorting to the licensed premises by way of anti-social behaviour and assaults over a sustained period of time. There is nothing from the recent incident registers to suggest any improvement in this regard.” The incident reports showed that the respondent, who was the approved manager of the premises, was personally involved in a significant number of the incidents as well as being aware of the overall incidents recorded, it is apparent that no strategies or practices to reduce harm were put in place to curb the assaults and anti-social behaviour at the venue by the licensee. In response, the respondent claimed that various incident reports were incorrect and the incidents recorded could not be attributed to the respondents. The respondent maintained the claim that anti-social behaviour is taking place in the vicinity of the premises where no other businesses are trading was wrong as late night food vending businesses were trading in Railway Terrace where the nightclub is located. The respondent claimed that many of the reported incidents related to preventing intoxicated persons entering the premises. In making its determination, the Commission found that the incidents referred to by Police were sufficient to prove grounds 1, 2 and 3 of the complaint. It found that the respondent relied heavily on a technique of attacking and attempting to cast doubt on the veracity of specific police reports and thereafter attempted to convince the Commission that on the basis that those specific reports were inaccurate, all of the reports were either wrong, or irrelevant or misleading. The Commission was not convinced about the doubts being raised in relation to the veracity of the evidence, primarily because the various data and reports were collated by different persons at different times thereby quashing any possibility of collusion to present false data.

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There was sufficient evidence provided before the Commission to show that the respondent used “gimmicks” to lure patrons into consuming alcohol rapidly. The Commission found that on the balance of probabilities, it could be concluded that the effect of a large number of ejections of intoxicated patrons and refusal of entry to intoxicated persons resorting to this premises would potentially give rise to alcohol related anti-social behaviour in the vicinity of this licensed premises. A decrease in police call outs and offending generally during the period when the premises was not operating supported this conclusion. The Commission observed that over the past four years the Director and the Commission had imposed various conditions on the licence to try and assist the licensee company in the management of the premises and the discharge of his duties under the Act. As a deterrent, the Commission also had imposed fines, yet serious incidents continued to occur. Given the observations made by the Commission in previous determinations, the Commission therefore had to decide whether it was in the public interest to allow the continuation of the licence. The Commission determined it was not, and was satisfied that the weight of evidence in respect of the conduct of the respondents over a considerable period of time justified the determination at which it arrived.

SUPREME COURT CHALLENGES Deen decision quashed

A decision by the Liquor Commission to reduce the hours of a hotel‟s extended trading permit (ETP) was challenged, and ultimately successful, in the Supreme Court during the reporting period. In 2012, the Deen Hotel applied to the Director of Liquor Licensing for an ETP to trade until 2am four days per week. This was in line with a previous ETP that had expired after being in place for five years. The delegate of the Director granted the application, however Police challenged this decision and sought a review at the Liquor Commission. In its decision, the Liquor Commission concluded that Northbridge is a premier entertainment area and there was substantial public interest in grant of this application to cater for people visiting the area. However, the Liquor Commission varied the terms of the permit by reducing the permitted trading hours on Monday, Thursday, Friday and Saturday from 2am to 1am, and imposing a lockout commencing 45 minutes before closing time.

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The licensee challenged this decision in the Supreme Court, on the following grounds:

1. The conclusion of the Liquor Commission lacked a manifest rational justification;

2. An error of law was made by the Liquor Commission;

3. There was a lack of procedural fairness; and

4. The Liquor Commission was not empowered to conduct a review.

The Supreme Court accepted that the imposition by the Liquor Commission lacked an evidential foundation and hence a rational explanation for its reasons contained in its decision. It also found that the licensee did not have a proper opportunity to address any alteration of the conditions upon the ETP from those which the Director had approved. However, the Court rejected the assertion that the Commission had no power to conduct a review because the Police, as intervener, had no power to apply for a review. In conclusion, the Supreme Court found the decision of the Liquor Commission to grant the permit on different terms involved a denial of procedural fairness, and subsequently the appeal was allowed.

Dan Murphy’s Bicton

On 30 August 2011, the Liquor Commission refused an application for the conditional grant of a liquor store licence for a Dan Murphy‟s store in Bicton. The application was refused due to a lack of evidence of consumer demand. The Commission‟s decision to refuse the application was appealed to a single judge of the Supreme Court. In dismissing the appeal, the judge found that the Commission had engaged with the appellant‟s case on its merits, had found all the necessary facts and had rejected the appellant‟s case and submissions on their merits (refer Woolworths Ltd v Director of Liquor Licensing [2012] WASC 384). The decision of the primary judge was appealed to a full bench of the Supreme Court which, in allowing the appeal and referring the application back to the Commission for redetermination, observed that the Commission was in error in considering the wrong question namely whether the popularity of the Dan Murphy‟s business model elsewhere justified the grant of the application. The court found that the correct question was whether having regard to all of the evidence was it in the public interest to grant the application? (refer Woolworths Ltd v Director of Liquor Licensing [2013] WASC 227). The application was referred back to the Commission for reconsideration. A remittal hearing for this application was heard before the Commission on 14 March 2014. On 11 June 2014, the Commission granted the application.

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KEY DEPARTMENTAL LICENSING DECISIONS AND THEMES The following decisions were made by the Director or his delegates and are featured in this report owing to the public interest they generated or for the likelihood of a precedent being set in future decisions. Redevelopment of Scarborough Beach Front The Matisse Beach Club

This concerned an application for a Tavern Restricted licence for premises located at Scarborough Beach where The Lookout and Club A previously operated. According to the application, the intention was to provide a beach-themed facility comprising bars, alfresco areas, dining facilities and ponds surrounded by decking. In granting the application, the delegate of the Director accepted that the redevelopment of the Scarborough Beach precinct, to improve the amenity and attractiveness of the area, was a priority project with significant benefits to the State. In accepting the benefits to the public in granting the application, the delegate also acknowledged the long history of alcohol-related problems at Scarborough and subsequently imposed a range of conditions on the licence. These included limiting the number of patrons on the premises to 750 in order to mitigate any potential negative impact that the operation of the licensed premises may have on the local community.

The Scarborough Beach Bar and Restaurant

The applicant sought a Tavern Restricted licence for premises which formerly operated as a restaurant on the first floor of 1 Manning Street, Scarborough. According to the application, the new tavern would provide dining and drinking services for mature adults overlooking the ocean. According to Tourism WA, a redeveloped Scarborough Beach Front has the potential to be one of WA‟s most successful tourist precincts. The licence was subsequently granted subject to a number of conditions relating to responsible service of alcohol practices, security, the provision of food and restricting patron numbers to 300. Suitability of premises Mad Mex Perth

An application for the conditional grant of a Restaurant licence for premises in Perth was refused because the proposed premise was considered unsuitable and the manner of trade conducted at the venue was deemed inappropriate for the type of licence sought. The proposed premise was considered unsuitable because the toilets to be used by patrons were not included within the premise that was the subject of the licence application. In fact, the toilets were located some 45 metres away, on a different level, and could only be accessed by use of a key. Furthermore, the facilities were also shared with other tenants of the building and were not easily accessible by the venue‟s patrons.

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The manner of trade to be conducted under the restaurant licence was also considered to be “not in keeping” with the requirements of section 50(3) of the Liquor Control Act 1988 which provides that the business conducted at a licensed premises must consist primarily and predominantly of the regular supply to customers of meals to be eaten on the premises. The business conducted at the premises was considered to be more in keeping with “a takeaway food outlet” where a patron, after having purchased food from the counter, could chose to eat at a table provided on the premises or elsewhere. (Note: an application to review this decision was received by the Liquor Commission). Grill‟d Brookfield

The applicant, Grill‟d Pty Ltd, applied for a Restaurant licence for premises located at Brookfield Place, 125 St Georges Terrace Perth. The delegate of the Director found that while the restaurant met the requirements of the Act in relation to the provision of meals for consumption on the premises, the restaurant did not meet the requirements of the Director‟s Policy in regards to the “Standards of Licensed Premises”. The delegate was not satisfied that the premises was of a sufficient standard or suitable for the proper conduct of a licensed restaurant due to the lack of onsite patron toilets, and the inadequacies of other available common access toilets (including access to the facilities and a lack of cover from the elements). As a result, the delegate determined that the proper development of the liquor industry would not be advanced by approving premises to operate under a Restaurant licence with inadequate patron toilet facilities. The application was refused. (Note: an application to review this decision was received by the Liquor Commission).

Liquor Stores

The Department continued to receive a considerable number of applications for the grant of liquor store licences. During the year, the Administrative Law Division determined 19 applications for liquor stores, nine of which were refused (one of these was subsequently approved by the Liquor Commission on review). Other Decisions Floatnshop

An application was lodged for the grant of a liquor store licence where a boat would travel the waterways and canals in the Peel region providing packaged liquor and delicatessen items to boaters and residents living on the canals. The Commissioner of Police and the City of Mandurah objected to the application while the Executive Director Public Health lodged a notice of intervention. In refusing the application, the delegate of the Director was of the view that the applicant‟s evidence and submissions were less than compelling when weighed against the potential risks associated with the grant of the application. Those risks related to the concerns raised by the interveners and objectors about the availability of alcohol on the waterways, impulse buying opportunities, and the consumption of liquor in a risky environment.

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Liquorland Karratha

Liquorland (Australia) Pty Ltd applied to establish a Liquorland liquor store adjacent to the Coles supermarket and K-Mart stores in the Centro Karratha Shopping Centre. The Executive Director Public Health and the Commissioner of Police intervened in the application while Ringthane Pty Ltd (licensee of the Karratha International Hotel) lodged an objection. It was submitted by the applicant that the grant of the licence would provide the public with the convenience of one-stop shopping and add to the choice and diversity of facilities available in the locality. The delegate refused the application because Karratha and surrounding areas already experience high levels of alcohol consumption and alcohol-related harm at rates significantly above the State average. It was found that the applicant‟s proposed premises may increase the availability of alcohol to at-risk groups in Karratha and could contribute to a higher likelihood of alcohol abuse and related illness. The delegate determined that if the application was granted, it would eventually contribute to the prevailing issues of alcohol-related violence and harm in the community. It was also noted that there was already a liquor store in the Centro Karratha Shopping Centre which would facilitate one-stop shopping.

The Batch Brewhouse

An application was received for the grant of a tavern licence for premises located on the edge of the Margaret River town site to facilitate a restaurant and microbrewery. There were a number of objections from local residents together with notices of intervention from the Executive Director Public Health and the Commissioner of Police. The objectors were concerned that noise and disturbance from the proposed tavern would negatively impact on them and disturb the quiet and peaceful amenity of the surrounding forest. The delegate of the Director was satisfied that the grant of the application was in the public interest, however in order to minimise any negative impact that the operation of the premises may have on the surrounding community a range of conditions were imposed on the licence, including reduced trading hours, limiting the maximum number of patrons permitted on the premises and compliance with a noise impact assessment.

Efes Cafe and Kebab House

An application for an extended trading permit was lodged to authorise the sale of liquor without a meal in a Northbridge restaurant. The Commissioner of Police intervened in the application in order to demonstrate that it was not in the public interest for the permit to be granted based on the inability of the restaurant management to effectively control patrons and that significant and repeated police attendances have been required to deal with liquor related offending in the past. Police also highlighted the current high level of alcohol related harm and ill health occurring in Northbridge and was of the opinion that the grant of this permit would increase that level of harm.

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The delegate of the Director determined that the intervention provided sufficient weight of evidence to demonstrate that the grant of the permit was not in the public interest in that it would likely lead to an increase in harm and ill-health in Northbridge.

Recent decision in Fremantle

In two recent decisions relating to extended trading permits for two Fremantle hotels, decision-makers noted that evidence of alcohol-related harm in Fremantle lodged by the Commissioner of Police and Executive Director Public Health was indicative of a community experiencing high levels of alcohol-related harm and ill health due to the consumption of liquor. In the case of The National Hotel, the decision-maker considered that the premises had only recently reopened, which necessitated a degree of “predicting the future” in assessing the likely potential impact that the premises would have on the locality, but nonetheless accepted the evidence of alcohol-related harm and ill health and determined, on the balance of probabilities, that the need to minimise such harm or ill-health in Fremantle was a strong public interest consideration. The delegate of the Director determined that this outweighed all other relevant factors and resulted in the application being refused. (Note: an application to review this decision was received by the Liquor Commission). In the case of the Newport Hotel, the decision-maker also accepted the evidence of alcohol-related harm and ill health and determined that the granting of extended trading on Friday and Saturday nights would not appreciatively increase the existing levels of alcohol-related harm in the locality, given that the licensee was already trading extended hours on those nights. However, the decision maker determined that even a relatively small risk of an increase in existing levels of alcohol-related harm would be unacceptable, and that any extension of trading hours on other nights or beyond 1am was not in the public interest, which resulted in the application being part granted. (Note: an application to review this decision was received by the Liquor Commission).

Upper Reach Fremantle

The operator of Upper Reach Winery in the Swan Valley sought a Special Facility (Tourism) licence in order to establish a satellite outlet at the Fremantle Markets. According to the application, the proposed premises would provide a “wine appreciation and interpretive experience” for locals and tourists visiting the Fremantle Markets who could then purchase Upper Reach wines as packaged liquor. In refusing the application, the delegate of the Director formed the viewed that the applicant had failed to discharge its onus under the Act, and it was not in the proper development of the liquor industry to allow an existing producer to set up a satellite outlet merely to create a further sales and distribution point for its products. (Note: an application to review this decision was received by the Liquor Commission).

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The Junction Pub and Tourist Park

An application was made by the Shire of Upper Gascoyne for the conditional grant of a Tavern licence for premises to be known as The Junction Pub and Tourist Park, with the applicant submitting that the proposed tavern would replace the former Junction Hotel, which was destroyed in floods in 2010. The Commissioner of Police intervened in these proceedings in order to make representations that both the Woodgamia and the Burringurrah Aboriginal Communities should be considered “at risk” groups for the purposes of the application, particularly given the views of police that community members may frequent the proposed venue to purchase large quantities of alcohol. After weighing and balancing the competing evidence of the parties, the delegate of the Director determined that it was in the public interest to grant the licence, which would provide a social hub for the families that live in the Shire, provided that the licence was subject to stringent conditions relating to the sale of packaged liquor (similar to the restrictions already imposed by the licensing authority in Meekatharra (see Page 48). This would serve to minimise potential harm or ill-health arising from the grant of the licence.

Discovery Parks Onslow

An application was made by Discovery Parks Onslow Pty Ltd for the grant of a Special Facility licence, for the prescribed purposes of a works canteen and tourism, for premises to be known as Discovery Parks Onslow. The application was objected to by Onslow General Pty Ltd, an existing liquor merchant in Onslow, and notices of intervention were lodged by the Executive Director Public Health and Commissioner of Police relating to concerns regarding existing alcohol-related harm in Onslow. The delegate of the Director did not consider Discovery Parks Onslow to be:

An attraction for tourists or a facility that enhances the State‟s tourist industry; or

A works canteen.

The application for a Special Facility licence was therefore refused. However, after weighing and balancing the competing evidence of the parties, the delegate accepted that there was a public interest in the grant of a licence at the premises and, pursuant to the discretion afforded by the Act, determined to conditionally grant the applicant a Hotel Restricted licence.

Probity

The probity of applicants for a liquor licence or seeking to be approved as managers of licensed premises remains a focus of the licensing authority. During the year, 30 people were found “not fit and proper” to be involved in the operation of licensed premises because of either their criminal record or antecedents. A further 44 were examined and subsequently approved.

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LIQUOR RESTRICTIONS Remote Communities

A significant number of Western Australian remote communities continue to explore methods to reduce the level of harm caused due to the use of liquor.

To address this, the Liquor Control Act 1988 enables areas of the State to be declared restricted areas, or private premises to be declared restricted premises. Both of these declarations prohibits the bringing in, possession and consumption of liquor over a specified period for an area/premises under declaration. Additionally, the Director of Liquor Licensing may impose conditions on licensees to restrict the sale and supply of liquor from licensed premises, where it is in the public interest.

Restricted Area Regulations

Section 175(1a) of the Act enables the Governor, on the recommendation of the Minister for Racing and Gaming, to declare an area of the State a restricted area that prohibits the bringing in, possession and consumption of liquor in the declared area. If a person commits an offence against the regulations, a penalty of between $2000 and $5000 applies. The restricted area declaration is currently the State Government‟s preferred legislative mechanism for alcohol management in Aboriginal communities. As at 30 June 2014, 16 Aboriginal communities throughout the Kimberley and Pilbara regions are declared restricted areas. In September 2013, the community of Warralong in the Pilbara was declared a restricted area for a period of three years. The declaration for the community of Oombulgurri in the Kimberley region lapsed in November 2013 and was not renewed due to the community being closed by the Government. It is expected that the Spinifex Native Title Determination Area in the Goldfields region will be declared a restricted area in early July 2014. Communities are seeing the effectiveness and benefits of restricting alcohol consumption through restricted area declarations and continue to extend the period of respective declarations. During 2013-14, 11 communities had existing declarations extended.

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The following table details those communities throughout the State that are declared restricted areas: Kimberley

Bayulu (Expires 29/6/16) Looma (Expires 28/5/17) Wangkatjungka (Expires 23/4/16)

Juwurlinji (Expires 25/7/14) Nicholson Block (Expires 18/9/16) Yakanarra (Expires 1/5/15)

Koongie Park (Expires 18/9/16) Noonkanbah (Expires 25/7/14)

Kundat Djaru (Expires 18/9/16) Pandanus Park (Expires 28/5/17)

Pilbara

Cheeditha (Expires 11/8/15) Jigalong (Expires 2/5/17) Punmu (Expires 4/12/16)

Irrungadji (Expires 4/12/16) Kunawarritji (Expires 4/5/15) Warralong (Expires 21/9/16)

Restricted Premises

Part 5B of the Act enables the owner or occupier of a private premises or privately owned land to apply to the Director of Liquor Licensing to have the premises declared a restricted premises. This makes it an offence for a person to bring into, consume or possess liquor on those premises for a specified period. Section 152P(4) of the Act also allows for a prescribed class of person to apply for a declaration of a liquor restricted premises. In this regard, the Chief Executive Officer of the Department for Child Protection is the only class of prescribed person in the regulations. As at 30 June 2014, a total of 366 premises have been declared by the Director as restricted premises. The following table details the locations of all declared premises:

Kimberley 181 Pilbara 66 Gascoyne -

Broome 24 Carnarvon 14

Derby 35 Karratha 5

Fitzroy Crossing 27 Marble Bar 1

Halls Creek 4 Newman 13

Kununurra 60 Port Hedland 4

Warmun 13 South Hedland 28

Wyndham 18 Wickham 1

Goldfields-Esperance 48 Wheatbelt 5 Peel 2

Boulder 2 Narrogin 1 Pinjarra 2

Coolgardie 1 Northam 2

Esperance 1 Toodyay 1

Kalgoorlie 14 Wongan Hills 1

Laverton 21

Leonora 5

Nulsen 4

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Mid West 48 Metropolitan 12 South West 4

Beachlands 2 Bayswater 1 Katanning 2

Cue 2 Belmont 1 Orana 1

Geraldton 3 Brookdale 2 Spencer Park 1

Meekatharra 25 Hamilton Hill 2

Mt Magnet 1 Highgate 1

Mullewa 1 Koondoola 1

Rangeway 1 Maddington 1

Spalding 2 Rivervale 1

Wiluna 10 Southlake 1

Wonthella 1 Willagee 1

Section 64 Inquiries

Under section 64 of the Act, the Director of Liquor Licensing is authorised to act in the public interest to impose restrictions on the sale of liquor from licensed premises to address alcohol related harm in any part of the State. A system of voluntary liquor accords also exists across the State whereby licensees, police and other local agencies agree on a set of voluntary liquor restrictions. As these accords are voluntary, their success depends on the will of the licensees to collectively abide by them. Under the above two processes, all major Kimberley towns currently have liquor restrictions in operation. While the State Government‟s position is that liquor restrictions in regional towns are useful in the short term as a circuit breaker, they are not a long term solution and more needs to be done by governments of all persuasions to identify and implement long term solutions that will address the underlying social issues. During 2013/14, the Director commenced section 64 Inquiries in relation to: Meekatharra (and surrounding areas)

In April 2013, police lodged a report with the Director regarding the extent of alcohol-related harm being experienced by people in Meekatharra, Cue, Mount Magnet, Sandstone and Yalgoo. As a consequence, licensees from these towns, as well as representatives from the shires of Meekatharra, Cue, Mount Magnet, Sandstone and Yalgoo, were invited by the Director to consider conditions that may be appropriate to address the negative impact of alcohol on the communities and on persons travelling from other areas to obtain packaged liquor. Following receipt of licensees‟ submissions, a decision will be made by the licensing authority as to whether restrictions should be imposed on liquor licences in these areas. It is anticipated that a determination on this matter will be made later this year.

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Wiluna

In conjunction with the inquiry into alcohol-related harm in Meekatharra and surrounding communities, a review of the effectiveness of the existing liquor restrictions in Wiluna has also commenced in consultation with the Shire of Wiluna. WA police provided a report on the extent of alcohol-related harm in Wiluna which has been provided to the licensee of the Club Hotel Wiluna, the only licensed premises in the town. The licensee was invited to comment on the report and on the effectiveness of the existing conditions imposed on the hotel licence. The licensee has responded to the Director and a report has also been received from the Executive Director Public Health. This matter is currently under consideration and should the view be formed that the trading conditions of the Club Hotel Wiluna are to be varied, a “show cause” notice under section 64(2a) of the Liquor Control Act 1988 will be issued to the licensee, affording the opportunity to provide submissions in response to the show cause notice. Following receipt of a submission, a decision will be made as to whether the trading conditions of the Club Hotel Wiluna are varied. Restrictions imposed under section 64 of the Act apply to the following rural and remote communities throughout Western Australia:

Agnew Kambalda Leonora Onslow Tom Price

Boulder Karratha Marble Bar Pannawonica Whim Creek

Coolgardie Kimberley Wide* Mardie Paraburdoo Wickham

Dampier Kookynie Meekatharra Pardoo Wiluna

Derby Kumarina Menzies Point Samson Wyndham

Fitzroy Crossing Kununurra Mount Magnet Port Hedland

Halls Creek Laverton Newman Sandfire Roadhouse

Kalgoorlie Leinster Nullagine South Hedland * Container restrictions apply to licences for premises north of 20 degrees south.

An interactive map showing the location of all liquor restrictions in WA (imposed under sections 64 and 175 of the Act), with a description of each restriction, is available on the Department‟s website: http://www.rgl.wa.gov.au/maps/tourism.html

BARRING NOTICES

Barring notices are an effective mechanism to prohibit people who display anti-social behaviour on licensed premises from entering licensed venues for a specified period. A barring notice can be in force for a maximum period of 12 months. Section 115AA of the Liquor Control Act 1988 provides that the Commissioner of Police may give a notice to a person prohibiting them from entering specified licensed premises, or a specified class of licensed premises, if the person has engaged in violent, disorderly or indecent behaviour, or has contravened any written law while on a licensed premises.

http://www.rgl.wa.gov.au/maps/tourism.html

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A $10,000 penalty applies to a person who is given a notice and fails to comply with it, unless the person is entering the premises solely for the purpose of performing duties related to their employment. During 2013-14, the Commissioner of Police issued 454 barring notices throughout the State compared with 347 barring notices issued during 2012-13.

PROHIBITION ORDERS

Prohibition orders aim to keep undesirable people or persons associated with serious and organised crime from entering or being employed on licensed premises. In this regard, the objective of a prohibition order is to protect the public from the unsavoury actions and activities that may be perpetrated by such individuals. Part 5A of the Liquor Control Act 1988 provides that the Commissioner of Police may apply to the Director of Liquor Licensing for a prohibition order to be made against a particular person. Prohibition orders can be issued to people who are involved in criminal or antisocial behaviour (such as “glassings”) in or around licensed premises, or whose employment in licensed premises is deemed to be problematic due to their involvement in serious or organised crime. A prohibition order may prohibit a person from:

Being employed by a licensee at a specified licensed premises, a particular class of licensed premises or any licensed premises; or

Entering a specified licensed premises, a specified class of licensed premises or any licensed premises.

An application for a prohibition order under section 152B must establish the reasons a person should be prohibited, and must also provide any other information that is relevant to the issue. The Director of Liquor Licensing is required to give written notice to the person who is the subject of the application; the notice must state that an application has been made, explain the proposed effect of the order and afford reasonable opportunity for the person to make submissions in relation to the matter. However, the Act states that the Director must not disclose information that is deemed to be confidential by the Commissioner of Police. The Director may impose a prohibition order only if he is satisfied it is in the public interest to do so. A prohibition order can be issued for a maximum of five years, or two years for a juvenile. A $10,000 penalty applies to a person who is given a copy of a prohibition order and fails to comply with that order. Similarly, a person given a copy of a prohibition order but who continues to employ the person subject to the prohibition order also commits an offence and faces a penalty of $10,000. There were 43 prohibition orders issued in 2013-14, compared to 37 issued during 2012-13. Further details are available on the department‟s website at: www.rgl.wa.gov.au/ProhibitionOrders.aspx

http://www.rgl.wa.gov.au/ProhibitionOrders.aspx

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NEW INFORMATION TECHNOLOGY SYSTEMS Unified Regulatory System (URS)

In 2013 the Department went through an open tender process to select a new computerised system to replace ageing and disparate licensing and compliance systems currently in use. As a result, Lighthouse HQ (based in Brisbane) was selected to provide their Navigate product as the new URS. The replacement of the Department‟s current licensing and compliance systems is continuing, with significant progress having been made on the development and implementation of the URS. The scope of the URS project has been enhanced to include an interactive web-based portal that will allow customers to lodge and view their applications online. The new portal will provide considerable benefits over the existing online functionality by allowing for the lodgement of applications, returns and other additional information required during processing. It will also provide the ability for customers to view details of applications and returns they have submitted as well as the current licence status and any outstanding payments. The portal functionality along with the new Navigate licensing and compliance system will provide greater flexibility in providing the services expected by the Department‟s customers. The design of the portal will also allow the services the Department offers online to be expanded over time to include more application types and functions than have been previously offered. Technical issues resulting from integration with the Department‟s finance and records management systems, and movement in the overall scope to include a portal solution, have resulted in a delayed “go live” date from November 2014 to February 2015. New Human Resource and Finance systems

As part of the decommissioning of the Office of Shared Services, the Department formed a partnership with the Department of Local Government and Communities, the State Heritage Office and Equal Opportunity Commission to deliver a Human Resource Management Information System (HRMIS) for payroll and human resource operational services, and a finance application. Through this partnership, the Department implemented a Financial Management Information System (Tech 1) which the Department hosts, and engaged a HRMIS provider (Aurion). The collaboration will lead to economic and productivity efficiencies for Government, and was successfully implemented in October 2013.

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RACING MINISTERS’ CONFERENCE

The Australasian Racing Ministers‟ Conference was held in Wellington, New Zealand on Friday 28 February 2014. The ministers came together to discuss common areas of interest to the industry. Ministers received briefings from Greyhounds Australasia, New Zealand Thoroughbred Racing, Harness Racing New Zealand, Greyhound Racing New Zealand, and the New Zealand Racing Board. They were also briefed by the New Zealand Ministry for Primary Industries on animal welfare, which is a significant topic for all three racing codes. Other matters discussed included racing integrity and track safety. Ministers agreed to establish a working party with the aim of taking actions that will minimise the issues that arose by the influx of unauthorised offshore wagering service providers. They also agreed to hold discussions with the Federal Government on the matter. This approach was deemed crucial towards preventing the continued operation of unauthorised offshore wagering service providers, which adversely affects revenue returns to the racing industry while undermining racing integrity assurance controls.

BEYOND GAMBLING GRANTS

The Beyond Gambling Grants Program is managed collaboratively by the Department of Local Government and Communities and the Department of Racing, Gaming and Liquor. The objectives of the grant program are to:

Raise awareness of the effects of problem social gambling on individuals, families and communities;

Strengthen the capacity of individuals, families and communities to reduce the level of gambling in the community;

Strengthen the capacity of the non-government sector to work with individuals, families and communities on the impact of problem social gambling; and

Address the impact of problem social gambling on individuals, families and communities.

For the 2013 funding round, an assessment panel comprising representatives from the Department of Racing, Gaming and Liquor, Department of Local Government and Communities, and Lotterywest considered a range of applications. Five grants, totalling $817,435, were recommended by the panel and subsequently approved. The details of the approved applications are listed below.

P a g e | 56

Bidyadanga Aboriginal Community La Grange

The Bidyadanga Gambling Diversion project provides positive diversionary activities for problem gamblers from the Bidyadanga community. Phase one of the project was funded via a Beyond Gambling grant in 2011 which established a range of diversionary activities for young people, such as basketball, football, dances and after school activities. The second phase of the program was approved to build on the ideas, relationships, networks and projects implemented in phase one, and to identify paths of transition to ensure the sustainability of the project. The focus in phase two will be on youth and senior women. Workshops promoting awareness of social gambling and related issues will continue to be provided.

Warburton Community Inc

The Wilurarra Creative Beyond Gambling program focuses on reducing the incidence of social and problem gambling among the young adults of the Ngaanyatjarra community. The project will engage local indigenous project workers to initiate constructive diversionary activities and educational workshops for problem and social gamblers.

By participating in activities across a range of creative engagement areas (such as hairdressing, fashion, photography, screen printing and design) participants learn new technical, creative and enterprising skills. These skills will culminate in the launch of a magazine which will portray healthy decision making to showcase positive contemporary Ngaanyatjarra Youth culture, good “money story” experiences, and specifically developed messages regarding the impacts of problem social gambling.

Arts Radio Ltd

The Youth in Radio Program aims to reduce the impact of problem gambling on young people through media stories/interviews, provision of work experience/training and diversionary opportunities to deter young people from participating in gambling. The program will engage young people from a variety of backgrounds to research and develop stories on a range of topics. Gambling and its social impact will be a major focus of the learning and program development training material. This will enable participants to understand the wider implications of problem gambling and its social impact.

EMO Community Services (ECOS) Inc

The EMO Community Services project provides a range of diversionary activities and educational workshops targeted towards African youth. The activities include sports, dance, drama, and music. Education sessions are facilitated by a social worker, and provide professional, cultural and spiritual support to this group of young people. The project aims to bridge cultural gaps, resolve conflict, support physical and mental health, and contribute to social cohesion and integration.

P a g e | 57

Langford Aboriginal Association

Langford Aboriginal Association received a grant to implement the Gambling Ends Today Moorditj project. The project will address the needs of the Aboriginal community through educational opportunities, counselling, support groups, research, reporting and the development of a resources directory.

Three educational retreats will be held incorporating motivational workshops, guest speakers, empowerment sessions, family sessions and counselling support to increase awareness of the risks/issues associated with gambling, as well as highlighting available support services. Short term, culturally appropriate counselling sessions will also be made available for problem gamblers and their families. An art therapy peer support group will be provided for the children of problem gamblers. The project will also have a research component to capture Aboriginal people‟s perceptions of gambling and the issues that are present within Perth metropolitan Aboriginal communities.

ATTENDANCES AT CONFERENCES AND MEETINGS Senior officers from the Department attended the following conferences in 2013/14:

Mr Sargeant travelled to Macao in July 2013 to gain a greater understanding of the importance of the international VIP business to casinos;

Mr Connolly attended the Electronic Gaming Machine National Standards working party meeting and Australasian Gaming Expo in August 2013 in Sydney;

Mr Sargeant attended the Australasian Liquor Licensing Authorities conference in November 2013, in Hobart and the CEOs of Casino and Gaming Regulators Forum in the same city;

Mr Connolly and Mr Sgro attended the Better Practice in Investigation and Inspection workshop in November 2013 in Adelaide;

Mr Connolly attended a Users Forum in Brisbane in February 2014 presented by Lighthouse HQ Pty Ltd which is under contract to supply the Department‟s new licensing and compliance system.

Mr Sargeant accompanied the Minister for Racing and Gaming to Wellington, New Zealand in February/March 2014 to attend the Annual Racing Ministers‟ Conference; and

Mr Sargeant attended the CEOs Forum and Annual Australasian Casino and Gaming Regulators Conference in Melbourne in June 2014.

P a g e | 58

CHANGES IN LEGISLATION

CHANGES TO REGULATIONS

On 20 August 2013 the Liquor Control Amendment Regulations 2013 amended the Liquor Control Regulations 1989 to reflect amendments to the Fines, Penalties and Infringement Notices Enforcement Amendment Act 2012 in relation to unpaid infringement notices.

On 21 September 2013 the Liquor Control Amendment Regulations (No. 5) 2013 amended regulation 27 of the Liquor Control Regulations 1989 to allow for an offence under the Liquor Control (Warralong Restricted Area) Regulations 2013 to be dealt with by way of an infringement notice.

On 7 December 2013 the Liquor Control Regulations 1989 were amended by the Liquor Control Amendment Regulations (No. 8) 2013 to amend the conditions of the exemption that applies to the sale of gift packages and hampers.

New fees and charges effective 1 January 2014 were introduced by the Liquor Control Amendment Regulations (No. 7) 2013.

On 22 March 2014 the Liquor Control Regulations 1989 were amended by the Liquor Control Amendment Regulations 2014 to allow for annual licence fees to be charged on a quarterly pro-rata basis.

On 17 June 2014 the Liquor Control Regulations 1989 were amended by the Liquor Control Amendment Regulations (No. 3) 2014 to prescribe the WA Photo Card as a document that can be accepted to prove the age of a suspected juvenile wishing to enter licensed premises. This was coordinated by the Department of Transport following the introduction of the Western Australian Photo Card Act 2014.

On 28 June 2014 the Liquor Control Regulations 1989 were amended by the Liquor Control Amendment Regulations (No. 2) 2014 to prescribe proof of age cards issued by a State or a Territory and a New South Wales Photo Card as additional documents that can be accepted to prove the age of a suspected juvenile wishing to enter licensed premises.

RESTRICTED AREA REGULATIONS

The Liquor Control (Koongie Park Restricted Area) Amendment Regulations 2013 came into effect on 14 September 2013 and extended the restricted area regulations for the Koongie Park Aboriginal Community for a further three years.

The Liquor Control (Nicholson Block Restricted Area) Amendment Regulations 2013 came into effect on 14 September 2013 and extended the restricted area regulations for the Nicholson Block Aboriginal Community for a further three years.

The Liquor Control (Kundat Djaru Restricted Area) Amendment Regulations 2013 came into effect on 14 September 2013 and extended the restricted area regulations for the Kundjat Djaru Aboriginal Community for a further six months. In March 2014 the Liquor Control (Kundat Djaru Restricted Area) Amendment Regulations 2014 extended the regulations for a further two and a half years.

P a g e | 59

The Liquor Control (Warralong Restricted Area) Regulations 2013 came into effect on 21 September 2013 for a period of three years. The regulations prohibit the bringing in, possession and consumption of liquor within the Warralong Aboriginal Community.

The Liquor Control (Irrungadji Restricted Area) Amendment Regulations 2013 came into effect on 16 November 2013 and extended the restricted area regulations for the Irrungadji Aboriginal Community for a further three years.

The Liquor Control (Punmu Restricted Area) Amendment Regulations 2013 came into effect on 16 November 2013 and extended the restricted area regulations for the Punmu Aboriginal Community for a further three years.

The Liquor Control (Bayulu Restricted Area) Amendment Regulations 2013 came into effect on 30 November 2013 and extended the restricted area regulations for the Bayulu Aboriginal Community for a further three years.

The Liquor Control (Jigalong Restricted Area) Amendment Regulations 2014 came into effect on 5 April 2014 and extended the restricted area regulations for the Jigalong Aboriginal Community a further three years.

The Liquor Control (Kunawarritji Park Restricted Area) Amendment Regulations 2014 came into effect on 3 May 2014 and extended the restricted area regulations for the Kunawarritji Aboriginal Community for a further 12 months.

The Liquor Control (Looma Restricted Area) Amendment Regulations 2014 came into effect on 24 May 2014 and extended the restricted area regulations for the Looma Aboriginal Community for a further three years.

The Liquor Control (Pandanus Park Restricted Area) Amendment Regulations 2014 came into effect on 24 May 2014 and extended the restricted area regulations for the Pandanus Park Aboriginal Community for a further three years.

The Liquor Control (Noonkanbah Restricted Area) Amendment Regulations 2014 came into effect on 7 June 2014 and extended the restricted area regulations for the Noonkanbah Aboriginal Community for a further three years.

P a g e | 60

DISCLOSURES AND LEGAL COMPLIANCE

FINANCIAL STATEMENTS

The aim of the Financial Statements is to present to the Parliament details of revenue and expenditure for the Department of Racing, Gaming and Liquor in the format determined by Statement of Accounting Standard AAS 29: Financial Reporting by Government Departments. It should be noted that:

The Department of Racing, Gaming and Liquor is a Department as defined under the Public Sector Management Act 1994;

These financial statements have been prepared on an accrual basis in accordance with the provisions of the Financial Management Act 2006; and

The Department provides financial management and other corporate services to the Gaming and Wagering Commission, the Racing Penalties Appeal Tribunal and the Liquor Commission.

CERTIFICATION OF FINANCIAL STATEMENTS For the year ended 30 June 2014 The accompanying financial statements of the Department of Racing Gaming and Liquor have been prepared in compliance with the provisions of the Financial Management Act 2006 from proper accounts and records to present fairly the financial transactions for the financial year ended 30 June 2014 and the financial position as at 30 June 2014. At the date of signing we are not aware of any circumstances which would render the particulars included in the financial statements misleading or inaccurate.

Barry A Sargeant DIRECTOR GENERAL 8 September 2014

Terry Ng CHIEF FINANCE OFFICER

8 September 2014

P a g e | 61

DEPARTMENT OF RACING, GAMING AND LIQUORSTATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 JUNE 2014

Note 2014 2013

$000 $000

COST OF SERVICES

Expenses

Employee benefits expense 6 10,536 9,962

Supplies and services 7 3,713 2,979

Depreciation and amortisation expense 8 560 411

Accommodation expenses 9 1,272 1,271

Other expenses 10 301 245

Total cost of services 16,382 14,868

Income

Revenue

User charges and fees 11 10,333 9,842

Total revenue 10,333 9,842

Total income other than income

from State Government 10,333 9,842

NET COST OF SERVICES 24 6,049 5,026

Income from State Government 12

Service appropriation 5,750 4,311

Services received free of charge 124 92

Total income from State Government 5,874 4,403

SURPLUS/(DEFICIT) FOR THE PERIOD (175) (623)

Total other comprehensive income 0 0

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD (175) (623)

The Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

See also the 'Schedule of Income and Expenses by Service'.

See also the 'Schedule of Income and Expenses by Service'.

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DEPARTMENT OF RACING, GAMING AND LIQUORSTATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2014

Note 2014 2013

$000 $000ASSETS

Current Assets

Cash and cash equivalents 24 38 2,598

Restricted cash and cash equivalents 13, 24 5 6

Receivables 14 533 620

Amounts receivable for services (Holding Account) 15 250 100

Total Current Assets 826 3,324

Non-Current Assets

Restricted cash and cash equivalents 13, 24 270 244

Amounts receivable for services (Holding Account) 15 2,230 1,922

Plant and equipment 16 635 487

Intangible assets 17 7,184 2,867

Total Non-Current Assets 10,319 5,520

TOTAL ASSETS 11,145 8,844

LIABILITIES

Current Liabilities

Payables 19 834 714

Provisions 20 1,453 1,346

Other current liabilities 21 90 50

Total Current Liabilities 2,377 2,110

Non-Current Liabilities

Provisions 20 727 673

Total Non-Current Liabilities 727 673

TOTAL LIABILITIES 3,104 2,783

NET ASSETS 8,041 6,061

EQUITY 22

Contributed equity 6,480 4,325

Accumulated surplus/(deficit) 1,561 1,736

TOTAL EQUITY 8,041 6,061

See also the 'Schedule of Assets and Liabilities by Service'.

The Statement of Financial Position should be read in conjunction with the accompanying notes.

P a g e | 63

DEPARTMENT OF RACING, GAMING AND LIQUORSTATEMENT OF CHANGES IN EQUITY


Accumulated

Contributed surplus/

Note equity Reserves (deficit) Total equity

$000 $000 $000 $000

Balance at 1 July 2012 22 454 0 2,359 2,813

Changes in accounting policy or correction of 0 0 0 0

prior period errors

Restated balance at 1 July 2012 454 0 2,359 2,813

Surplus/(deficit) 0 0 (623) (623)

Other comprehensive income 0 0 0 0

Total comprehensive income for the period 0 0 (623) (623)

Transactions with owners in their capacity as owners:

Capital appropriations 3,871 0 0 3,871

Other contributions by owners 0 0 0 0

Distributions to owners 0 0 0 0

Total 3,871 0 0 3,871

Balance at 30 June 2013 4,325 0 1,736 6,061

Balance at 1 July 2013 4,325 0 1,736 6,061

Surplus/(deficit) 0 0 (175) (175)

Other comprehensive income 0 0 0 0

Total comprehensive income for the period 0 0 (175) (175)

Transactions with owners in their capacity as owners:

Capital appropriations 2,155 0 0 2,155

Other contributions by owners 0 0 0 0

Distributions to owners 0 0 0 0

Total 2,155 0 0 2,155

Balance at 30 June 2014 6,480 0 1,561 8,041

The Statement of Changes in Equity should be read in conjunction with the accompanying notes.

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DEPARTMENT OF RACING, GAMING AND LIQUORSTATEMENT OF CASH FLOWS


Note 2014 2013

$000 $000

CASH FLOWS FROM STATE GOVERNMENT

Service appropriation 5,192 4,073

Capital appropriations 2,155 3,871

Holding account drawdowns 100 150

Non-retained revenue returned 0 (500)

Net cash provided by State Government 7,447 7,594

Utilised as follows:

CASH FLOWS FROM OPERATING ACTIVITIES

Payments

Employee benefits (10,496) (10,211)

Supplies and services (3,551) (3,050)

Accommodation (1,282) (1,166)

GST payments on purchases (706) (657)

GST payments to taxation authority 0 0

Other payments (204) (118)

Receipts

User charges and fees 10,340 10,249

Other revenues 19 39

GST receipts on sales 0 5

GST receipts from taxation authority 694 643

Net cash provided by/(used in) operating activities 24 (5,186) (4,266)

CASH FLOWS FROM INVESTING ACTIVITIES

Payments

Purchase of non-current assets (4,817) (1,157) Payments from fees in trust (613) (975)

Receipts

Proceeds from fees in trust 634 940

Net cash provided by/(used in) investing activities (4,796) (1,192)

Net increase/(decrease) in cash and cash equivalents (2,535) 2,136

Cash and cash equivalents at the beginning of the period 2,848 712

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 24 313 2,848

The Statement of Cash Flows should be read in conjunction with the accompanying notes.

P a g e | 65

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P a g e | 68

P a g e | 69

DEPARTMENT OF RACING, GAMING AND LIQUORNOTES TO THE FINANCIAL STATEMENTS


Note 1. Australian Accounting Standards

General

Note 2. Summary of significant accounting policies

(a) General statement

(b) Basis of preparation

(c) Reporting entity

The financial statements have been prepared on the accrual basis of accounting using the historical cost convention.

The accounting policies adopted in the preparation of the financial statements have been consistently applied throughout all periods presented unless otherwise stated.

The financial statements are presented in Australian dollars and all values are rounded to the nearest thousand dollars ($'000).

Note 3 'Judgements made by management in applying accounting policies‟ discloses judgements that have been made in the process of applying the Department's accounting policies resulting in the most significant effect on amounts recognised in the financial statements.

Note 4 „Key sources of estimation uncertainty‟ discloses key assumptions made concerning the future, and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

The Department‟s financial statements for the year ended 30 June 2014 have been prepared in accordance with Australian Accounting Standards. The term „Australian Accounting Standards‟ includes Standards and Interpretations issued by the Australian Accounting Standard Board (AASB).

The Department has adopted any applicable, new and revised Australian Accounting Standards from their operative dates.

Early adoption of standardsThe Department cannot early adopt an Australian Accounting Standard unless specifically permitted by TI 1101 Application of Australian Accounting Standards and Other Pronouncements . There has been no early adoption of Australian Accounting Standards that have been issued or amended (but not operative) by the Department for the annual reporting period ended 30 June 2014.

The reporting entity comprises the Department only.

MissionTo regulate the liquor and gambling industries in Western Australia

The Department is partly funded by Parliamentary appropriations. During 2013-14, the Department provided financial management and other corporate support services to other agencies that are charged out on a full cost recovery basis:- Racing Penalties Appeal Tribunal; and- Gaming and Wagering Commission of Western Australia.

The Department is a not-for-profit reporting entity that prepares general purpose financial statements in accordance with Australian Accounting Standards, the Framework, Statements of Accounting Concepts and other authoritative pronouncements of the AASB as applied by the Treasurer's instructions. Several of these are modified by the Treasurer's instructions to vary application, disclosure, format and wording.

The Financial Management Act 2006 and the Treasurer's instructions impose legislative provisions that govern the preparation of financial statements and take precedence over Australian Accounting Standards, the Framework, Statements of Accounting Concepts and other authoritative pronouncements of the AASB.

Where modification is required and has had a material or significant financial effect upon the reported results, details of that modification and the resulting financial effect are disclosed in the notes to the financial statements.

P a g e | 70

(d) Contributed equity

(e) Income

Revenue recognition

Sale of goods

Provision of services

Service appropriations

Net Appropriation Determination

Gains

Service Appropriations are recognised as revenues at fair value in the period in which the Department gains control of the appropriated funds. The Department gains control of appropriated funds at the time those funds are deposited to the bank account or credited to the „Amounts receivable for services‟ (holding account) held at Treasury.

The Treasurer may make a determination providing for prescribed receipts to be retained for services under the control of the Department. In accordance with the determination specified in the 2013-14 Budget Statements, the Department retained $10.33 million in 2014 ($9.84 million in 2013) from the following:

* proceeds from the provision of services to the racing and gaming Industries;* proceeds from the provision of services to the Commonwealth in respect of Indian Ocean Territories; and* liquor fees and other revenue.

ServicesThe Department provides the following services:

Service 1 : Licensing - Evaluation and determination of applications*Receive, process and determine applications in accordance with the legislation.

Service 2 : Compliance audits and inspections*Perform audits and inspections to verify that the provision of gambling and liquor is conducted in a responsible and lawful manner.

The Department administers assets, liabilities, income and expenses on behalf of Government which are not controlled by, nor integral, to the function of the Department. These administered balances and transactions are not recognised in the principal financial statements of the Department but schedules are prepared using the same basis as the financial statements and are presented at note 34 „Disclosure of administered expenses and income‟ and note 35 „Administered assets and liabilities‟.

Revenue is recognised and measured at the fair value of consideration received or receivable. Revenue is recognised for the major business activities as follows:

Revenue is recognised from the sale of goods and disposal of other assets when the significant risks and rewards of ownership transfer to the purchaser and can be measured reliably.

Revenue is recognised by reference to the stage of completion of the transaction.

Realised or unrealised gains are usually recognised on a net basis. These include gains arising on the disposal of non-current assets.

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 TI 955 Contributions by Owners made to Wholly Owned Public Sector Entities and have been credited directly to Contributed equity.

The transfer of net assets to/from other agencies, other than as a result of a restructure of administrative arrangements, are designated as contributions by owners where the transfers are non-discretionary and non-reciprocal.

Grants, donations, gifts and other non-reciprocal contributionsRevenue is recognised at fair value when the Department obtains control over the assetscomprising the contributions, usually when cash is received.

Other non-reciprocal contributions that are not contributions by owners are recognised at their fairvalue. Contributions of services are only recognised when a fair value can be reliably determinedand the services would be purchased if not donated.

P a g e | 71

(f) Plant and equipment

Initial recognition and measurement

Subsequent measurement

Depreciation

(g) Intangible Assets

All non-current assets having a limited useful life are systematically depreciated over their estimated useful lives in a manner that reflects the consumption of their future economic benefits.

Depreciation is calculated using the straight line method, using rates which are reviewed annually. Estimated useful lives for each class of depreciable asset are:

Furniture equipment 10 - 15 years Office equipment 3 - 20 years

Plant and equipment are initially recognised at cost.

For items of plant and equipment acquired at no cost or for nominal consideration, the cost is the fair value at the date of acquisition.

Subsequent to initial recognition as an asset, the Department uses the historical cost model for the measurement of plant and equipment. Plant and equipment are stated at historical cost less accumulated depreciation and accumulated impairment losses.

Capitalisation/expensing of assetsAcquisitions of intangible assets costing $5,000 or more and internally generated intangible assets costing $50,000 or more are capitalised. The cost of utilising the assets is expensed (amortised) over their useful lives. Costs incurred below these thresholds are immediately expensed directly to the Statement of Comprehensive Income.

Intangible assets are initially recognised at cost. For assets acquired at no cost or for nominal cost, the cost is their fair value at the date of acquisition.

The cost model is applied for subsequent measurement requiring the asset to be carried at cost less any accumulated amortisation and accumulated impairment losses.

Amortisation for intangible assets with finite useful lives is calculated for the period of the expected benefit (estimated useful life which is reviewed annually) on the straight line basis. All intangible assets controlled by the Department have a finite useful life and zero residual value.

The expected useful lives for computer software is five to ten years.

LicencesLicences have a finite useful life and are carried at cost less accumulated amortisation and accumulated impairment losses.

Development costsResearch costs are expensed as incurred. Development costs incurred for an individual project are carried forward when the future economic benefits can reasonably be regarded as assured and the total project costs are likely to exceed $50,000. Other development costs are expensed as incurred.

Computer SoftwareSoftware that is an integral part of the related hardware is treated as plant and equipment. Software that is not an integral part of the related hardware is recognised as an intangible asset. Software costing less than $5,000 is expensed in the year of acquisition.

Website costsWebsite costs are charged as expenses when they are incurred unless they relate to the acquisition or development of an asset when they may be capitalised and amortised. Generally, costs in relation to feasibility studies during the planning phase of a website, and ongoing costs of maintenance during the operating phase are expensed. Costs incurred in building or enhancing a website, to the extent that they represent probable future economic benefits that can be reliably measured, are capitalised.

Capitalisation/expensing of assetsItems of plant and equipment costing $5,000 or more are recognised as assets and the cost of utilising assets is expensed (depreciated) over their useful lives. Items of plant and equipment costing less than $5,000 are immediately expensed direct to the Statement of Comprehensive Income (other than where they form part of a group of similar items which are significant in total).

P a g e | 72

(h) Impairment of assets

(i) Leases

(j) Financial instruments

(k) Cash and cash equivalents

(l) Accrued salaries

(m) Amounts receivable for services (holding account)

(n) Receivables

(o) Payables

Receivables are recognised at original invoice amount less an allowance for any uncollectible amounts (i.e. impairment). The

collectability of receivables is reviewed on an ongoing basis and any receivables identif ied as uncollectible are written of f against the

allowance account. The allowance for uncollectible amounts (doubtful debts) is raised when there is objective evidence that the

Department will not be able to collect the debts. The carrying amount is equivalent to fair value as it is due for settlement within 30

days.

For the purpose of the Statement of Cash Flows, cash and cash equivalent (and restricted cash and cash equivalent) assets comprise cash on hand.

The Department holds operating leases for motor vehicles, of f ice accommodation and of fice equipment. Lease payments are expensed on a straight line basis over the lease term as this represents the pattern of benef its derived f rom the leased prop erties.

Payables are recognised at the amounts payable when the Department becomes obliged to make future payments as a result of a purchase of assets or services. The carrying amount is equivalent to fair value, as settlement is generally within 30 days.

Accrued salaries (see note 19 „Payables‟) represent the amount due to staf f but unpaid at the end of the f inancial year. Accrued salaries are settled within a fortnight of the f inancial year end. The Department considers the carrying amount of accrued s alaries to be equivalent to its fair value.

The accrued salaries suspense account (see note 13 „Restricted cash and cash equivalents') consists of amounts paid annually into a suspense account over a period of 10 f inancial years to largely meet the additional cash outf low in each eleventh year when 27 pay days occur instead of the normal 26. No interest is received on this account.

Plant and equipment, and intangible assets are tested for any indication of impairment at the end of each reporting period. Where

there is an indication of impairment, the recoverable amount is estimated. Where the recoverable amount is less than the carrying

amount, the asset is considered impaired and is written down to the recoverable amount and an impairment loss is recognised.

Where an asset measured at cost is written down to recoverable amount, an impairment loss is recognised in prof it or loss. Where

a previously revalued asset is written down to recoverable amount, the loss is recognised as a revaluation decrement in other

comprehensive income. As the Department is a not-for-prof it entity, unless an asset has been identif ied as a surplus asset, the

recoverable amount is the higher of an asset's fair value less costs to sell and depreciated replacement cost.

The risk of impairment is generally limited to circumstances where an asset's depreciation is materially understated, where t he

replacement cost is falling or where there is a signif icant change in useful life. Each relevant class of assets is reviewed annually to

verify that the accumulated depreciation/amortisation ref lects the level of consumption or expiration of the asset's future economic

benef its and to evaluate any impairment risk f rom falling replacement costs.

Intangible assets with an indef inite useful life and intangible assets not yet available for use are tested for impairment at the end of each reporting period irrespective of whether there is any indication of impairment.

The recoverable amount of assets identif ied as surplus assets is the higher of fair value less costs to sell and the present value of future cash f lows expected to be derived f rom the asset. Surplus assets carried at fair value have no risk of material impairment where fair value is determined by reference to market-based evidence. Where fair value is determined by reference to depreciated

replacement cost, surplus assets are at risk of impairment and the recoverable amount is measured. Surplus assets at cost are tested for indications of impairment at the end of each reporting period.

In addition to cash, the Department has two categories of f inancial instrument:

* Receivables; and* Financial liabilities measured at amortised cost.

Financial instruments have been disaggregated into the following classes:

* Financial Assets- Cash and cash equivalents- Restricted cash and cash equivalents

- Receivables- Amounts receivable for services

* Financial Liabilities- Payables

Initial recognition and measurement of f inancial instruments is at fair value which normally equates to the transaction cost or the face

value. Subsequent measurement is at amortised cost using the ef fective interest method.

The fair value of short-term receivables and payables is the transaction cost or the face value because there is no interest rat e

applicable and subsequent measurement is not required as the ef fect of discounting is not material.

The Department receives funding on an accrual basis. The appropriations are paid partly in cash and partly as an asset (holdi ng account receivable). The accrued amount receivable is accessible on the emergence of the cash funding requirement to cover leaveentitlements and asset replacement.

P a g e | 73

(p) Provisions

Provisions - employee benefits

Provisions are liabilities of uncertain timing or amount and are recognised where there is a present legal or constructive obligation as a result of a past event and when the outflow of resources embodying economic benefits is probable and a reliable estimate can be made of the amount of the obligation. Provisions are reviewed at the end of each reporting period.

All annual leave and long service leave provisions are in respect of employees' services up to the end of the reporting perio d.

Annual leave Annual leave is not expected to be settled wholly within 12 months after the end of the reportingperiod and is therefore

considered to be „other long-term employee benefits‟. The annual leave liability is recognised and measured at the present value of amounts expected to be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement.

When assessing expected future payments consideration is given to expected future wage and salary levels including non-salary components such as employer superannuation contributions, as well as the experience of employee departures and periods of service. The expected future payments are discounted using market yields at the end of the reporting period on national government bonds with terms to maturity that match, as closely as possible, the estimated future cash outflows.

The provision for annual leave is classified as a current liability as the Department does not have an unconditional right to defer

settlement of the liability for at least 12 months after the end of the reporting period.

Long service leaveLong service leave is not expected to be settled wholly within 12 months after the end of the reporting period and is therefore recognised and measured at the present value of amounts expected to be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement.

When assessing expected future payments consideration is given to expected future wage and salary levels including non-salary components such as employer superannuation contributions, as well as the experience of employee departures and periods of service. The expected future payments are discounted using market yields at the end of the reporting period on

national government bonds with terms to maturity that match, as closely as possible, the estimated future cash outflows.

Unconditional long service leave provisions are classified as current liabilities as the Department does not have an unconditional right to defer settlement of the liability for at least 12 months after the end of the reporting period. Pre-conditional and conditional long service leave provisions are classified as non-current liabilities because the Department has an unconditional right to defer the settlement of the liability until the employee has completed the requisite years of service.

Sick LeaveLiabilities for sick leave are recognised when it is probable that sick leave paid in the future will be greater than the ent itlement that will accrue in the future.

Past history indicates that on average, sick leave taken each reporting period is less than the entitlement accrued. This isexpected to continue in future periods. Accordingly, it is unlikely that existing accumulated entitlements will be used by employees and no liability for unused sick leave entitlements is recognised. As sick leave is non-vesting, an expense is recognised in the Statement of Comprehensive Income for this leave as it is taken.

Purchased LeaveThe provision for purchased leave relates to Public Service employees who have entered into an agreement to self -fund up to an additional 10 weeks leave per calendar year. The provision recognises the value of salary set aside for employees and is measured at the undiscounted amounts expected to be paid when the liabilities are settled.

SuperannuationThe Government Employees Superannuation Board (GESB) and other fund providers administer public sector superannuation arrangements in Western Australia in accordance with legislative requirements. Eligibility criteria for membership in particular schemes for public sector employees vary according to commencement and implementation dates.

Eligible employees contribute to the Pension Scheme, a defined benefit pension scheme closed to new members since 1987, or the Gold State Superannuation Scheme (GSS), a defined benefit lump sum scheme closed to new members since 1995.

Employees commencing employment prior to 16 April 2007 who were not members of either the Pension Scheme or the GSS

became non-contributory members of the West State Superannuation Scheme (WSS). Employees commencing employment on or after 16 April 2007 became members of the GESB Super Scheme (GESBS). From 30 March 2012, existing members of the WSS or GESBS and new employees have been able to choose their preferred superannuation fund provider. The Department makes contributions to GESB or other fund providers on behalf of employees in compliance with the Commonwealth Government’s Superannuation Guarantee (Administration) Act 1992. Contributions to these accumulation schemes extinguish the Department‟s liability for superannuation charges in respect of employees who are not members of the Pension Scheme or GSS.

There is no Pension Scheme and the pre-transfer benefit for the Department.

The expected future payments are discounted to present value using market yields at the end of the reporting period on national government bonds with terms to maturity that match, as closely as possible, the estimated future cash outflows.

P a g e | 74

Provisions - Other

(q) Superannuation expense

(r) Assets and services received free of charge or for nominal cost

(s) Fees in trust

(t) Comparative figures

Note 3. Judgements made by management in applying accounting policies

Note 4. Key sources of estimation uncertainty

Assets or services received free of charge or for nominal cost, that the Department would otherwise purchase if not donated, are recognised as income at the fair value of the assets or services where they can be reliably measured. A corresponding expense is recognised for services received. Receipts of assets are recognised in the Statement of Financial Position.

Comparative figures are, where appropriate, reclassified to be comparable with the figures presented in the current financialyear.

Fees in trust mainly represent the outstanding balances of liquor licence fees related to Christmas and Cocos Islands.

Employment on-costsEmployment on-costs, including workers‟ compensation insurance, are not employee benefits and are recognised separately as liabilities and expenses when the employment to which they relate has occurred. Employment on -costs are included as part of „Other expenses‟ and are not included as part of the Department‟s „Employee benefits expense‟. The related liability is

included in „Employment on-costs provision‟.

Restoration CostsA provision is recognised where the Department has a legal or constructive obligation to undertake restoration work. Estimates are based on the present value of expected future cash outflows.

The preparation of financial statements requires management to make judgements about the application of accounting policies that have a significant effect on the amounts recognised in the financial statements. The Department evaluates thes e judgements regularly.

Operating Lease CommitmentsThe Department has entered into a number of commercial lease arrangements for motor vehicles, office accommodation and office equipment and has determined that the lessor retains substantially all the significant risks and rewards incidental toownership. Accordingly, these leases have been classified as operating leases.

Key estimates and assumptions concerning the future are based on historical experience and various other factors that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year.

Long Service Leave

Several estimations and assumptions used in calculating the Department's long service leave provision include expected future salary rates, discount rates, employee retention rates and expected future payments. Changes in these estimations and assumptions may impact on the carrying amount of the long service leave provision.

Superannuation expense is recognised in the Statement of Comprehensive Income in profit or lossfor defined contribution plans, including the concurrent payment of employer contributions to theGSS scheme, as and when the contributions fall due.

For defined benefit plans (the Pension Scheme and the pre-transfer component of the GSS),changes in the defined benefit obligation are recognised in the Statement of ComprehensiveIncome either in profit or loss, or, other comprehensive income as follows:

* profit or loss:

o current service cost;o past service cost; ando interest cost.

* other comprehensive income:o actuarial gains and losses.

The GSS, the WSS, and the GESBS, where the current service superannuation charge is paid by the Department to the GESB, are defined contribution schemes. The liabilities for current service superannuation charges under the GSS, the WSS, and the GESBS are extinguished by the concurrent payment of employer contributions to the GESB.

The GSS is a defined benefit scheme for the purposes of employees and whole-of-government reporting. However, from an agency perspective, apart from the pre-transfer benefits, it is a defined contribution plan under AASB 119.

P a g e | 75

Note 5. Disclosure of changes in accounting policy and estimates

AASB 13

AASB 119

AASB 1048

AASB 2011-8

AASB 2011-10

AASB 2012-2

AASB 2012-5

AASB 2012-6

AASB 2012-9

AASB 2012-10

AASB 2013-9

Initial application of an Australian Accounting StandardThe Department has applied the following Australian Accounting Standards effective for annual reporting periods beginning on or after 1 July 2013 that impacted on the Department.

Fair Value Measurement

This Standard defines fair value, sets out a framework for measuring fair value and requires additional disclosures for assets and liabilities measured at fair value. There is no financial impact.

Employee Benefits

This Standard supersedes AASB 119 (October 2010), making changes to the recognition, presentation and disclosure requirements.

The Department assessed employee leave patterns to determine whether annual leave is a short -term or other long-term employee benefit. The resultant discounting of annual leave liabilities that were previously measured at the undiscounted amounts is not material.

Interpretation of Standards

This Standard supersedes AASB 1048 (June 2012), enabling references to the Interpretations in all other Standards to be updated by reissuing the service Standard. There is no financial impact.

Amendments to Australian Accounting Standards arising from AASB 13 [AASB 1, 2, 3, 4, 5, 7, 9, 2009-11, 2010-7, 101, 102, 108, 110, 116, 117, 118, 119, 120, 121, 128, 131, 132, 133, 134, 136, 138, 139, 140, 141, 1004, 1023 & 1038 and Int 2, 4, 12, 13, 14, 17, 19, 131 & 132]

This Standard replaces the existing definition and fair value guidance in other Australian Accounting Standards and Interpretations as the result of issuing AASB 13 in September 2011. There is no financial impact.

Amendments to Australian Accounting Standards arising from AASB 119 (September 2011)[AASB 1, 8, 101, 124, 134, 1049 & 2011-8 and Int 14]

This Standard makes amendments to other Australian Accounting Standards and Interpretations as a result of

issuing AASB 119 in September 2011. The resultant discounting of annual leave liabilities that were previously measured at the undiscounted amounts is not material.

Amendments to Australian Accounting Standards – Disclosures – Offsetting Financial Assets and Financial Liabilities [AASB 7 & 132]

This Standard amends the required disclosures in AASB 7 to include information that will enable users of an entity‟s financial statements to evaluate the effect or potential effect of netting arrangements, including rights of set-off associated with the entity‟s recognised financial assets and recognised financial liabilities, on the entity‟s f inancial position. There is no financial impact.

Amendments to Australian Accounting Standards arising from Annual Improvements 2009-11 Cycle [AASB 1, 101, 116, 132 & 134 and Int 2]

This Standard makes amendments to the Australian Accounting Standards and Interpretations as a

consequence of the annual improvements process. There is no financial impact.

Amendments to Australian Accounting Standards – Mandatory Effective Date of AASB 9 and Transition Disclosures [AASB 9, 2009-11, 2010-7, 2011-7 & 2011-8]

This Standard amends the mandatory effective date of AASB 9 Financial Instruments to 1 January 2015

(instead of 1 January 2013). Further amendments are also made to numerous consequential amendments arising from AASB 9 that will now apply from 1 January 2015. There is no financial impact.

Amendment to AASB 1048 arising from the Withdrawal of Australian Int 1039

The withdrawal of Int 1039 Substantive Enactment of Major Tax Bills in Australia has no financial impact for the Department during the reporting period and at balance date. Measurement of tax assets and liabilities

continues to be measured in accordance with enacted or substantively enacted tax law pursuant to AASB 112.46-47.

Amendments to Australian Accounting Standards – Transition Guidance and Other Amendments [AASB 1, 5, 7, 8, 10, 11, 12, 13, 101, 102, 108, 112, 118, 119, 127, 128, 132, 133, 134, 137, 1023, 1038, 1039, 1049 & 2011-7 and Int 12]

The Standard introduces a number of editorial alterations and amends the mandatory application date of Standards for not for profit entities accounting for interests in other entities. There is no financial impact.

Amendments to Australian Accounting Standards – Conceptual Framework, Materiality and Financial Instruments

Part A of this omnibus Standard makes amendments to other Standards arising from revisions to the Australian Accounting Conceptual Framework for periods ending on or after 20 December 2013. Other Parts of this Standard become operative in later periods. There is no financial impact for Part A of the Standard.

P a g e | 76

Operative for

reporting periods

beginning

on/after

Int 21

AASB 9

AASB 10

AASB 11

AASB 12

AASB 14

AASB 127

1 Jan 2018Financial Instruments

This Standard supersedes AASB 139 Financial Instruments: Recognition and Measurement, introducing a number of changes to accounting treatments.

The mandatory application date of this Standard was amended to 1 January 2018. The Department has not yet determined the application or the potential impact of the Standard.

1 Jan 2014Consolidated Financial Statements

This Standard, issued in August 2011, supersedes AASB 127 Consolidated and Separate Financial Statements and Int 112 Consolidation – Special Purpose Entities, introducing a number of changes to accounting treatments.

Mandatory application of this Standard was deferred for not-for-profit entities by AASB 2012-10 Amendments to Australian Accounting Standards – Transition Guidance and Other Amendments. The adoption of the new Standard has no financial impact for the Model Department as it does not impact accounting for related bodies and the Department has no interests in other entities.

1 Jan 2014Disclosure of Interests in Other Entities

This Standard, issued in August 2011, supersedes disclosure requirements in AASB 127 Consolidated and Separate Financial Statements, AASB 128 Investments inAssociates and AASB 131 Interests in Joint Ventures. Mandatory application was deferred for not-for-profit entities by AASB 2012-10. There is no financial impact.

1 Jan 2014Levies

This Interpretation clarifies the circumstances under which a liability to pay a government levy imposed should be recognised. There is no financial impact for the Department at reporting date.

1 Jan 2016Regulatory Deferral Accounts

The Department has not yet determined the application or the potential impact of the Standard.

1 Jan 2014Separate Financial Statements

This Standard, issued in August 2011, supersedes AASB 127 Consolidated and Separate Financial Statements, removing the consolidation requirements of the earlier standard whilst retaining accounting and disclosure requirements for the preparation of separate financial statements. Mandatory application was deferred for not-for-profit entities by AASB 2012-10. There is no financial impact.

Future impact of Australian Accounting Standards not yet operative

The Department cannot early adopt an Australian Accounting Standard unless specifically permitted by TI 1101 Application of Australian Accounting Standards and Other Pronouncements . Consequently, the Department has not applied early any of the following Australian Accounting Standards that have been issued that may impact the Department. Where applicable, the Department plans to apply these Australian Accounting Standards from their application date.

1 Jan 2014Joint Arrangements

This Standard, issued in August 2011, supersedes AASB 131 Interests in Joint Ventures, introduces new principles for determining the type of joint arrangement that exists, which are more aligned to the actual rights and obligations of the parties to the arrangement.

Mandatory application of this Standard was deferred for not-for-profit entities by AASB 2012-10. There is no financial impact for the Model Department as the new standard continues to require the recognition of the Department‟s share of assets and share of liabilities for the unincorporated joint operation.

P a g e | 77

Operative for

reporting periods

beginning

on/after

AASB 128

AASB 1031

AASB 1055

AASB 2009-11

AASB 2010-7

AASB 2011-7

AASB 2012-3

AASB 2013-3

1 Jan 2014Materiality

This Standard supersedes AASB 1031 (February 2010), removing Australian guidance on materiality not available in IFRSs and refers to guidance on materiality in other Australian pronouncements. There is no financial impact.

1 Jul 2014Budgetary Reporting

This Standard requires specific budgetary disclosures in the financial statements of not-for-profit entities within the General Government Sector. The Department will be required to disclose additional budgetary information and explanations of major variances between actual and budgeted amounts, though there is no financial impact.

1 Jan 2015Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 & 1038 and Int 2, 5, 10, 12, 19 & 127]

This Standard makes consequential amendments to other Australian Accounting Standards and Interpretations as a result of issuing AASB 9 in December 2010. The Department has not yet determined the application or the potential impact of the Standard.

1 Jan 2014Investments in Associates and Joint Ventures

This Standard, issued in August 2011 supersedes AASB 128 Investments in Associates, introducing a number of clarifications for the accounting treatments of changed ownership interest.

Mandatory application was deferred for not-for-profit entities by AASB 2012-10. The adoption of the new Standard has no financial impact for the Model Department as it does not hold investments in associates and the accounting treatments for joint operations is consistent with current practice.

1 Jan 2014Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards [AASB 1, 2, 3, 5, 7, 101, 107, 112, 118, 121, 124, 132, 133, 136, 138, 139, 1023 & 1038 and Int 5, 9, 16 & 17]

This Standard gives effect to consequential changes arising from the issuance of AASB 10, AASB 11, AASB 127 Separate Financial Statements and AASB 128 Investments in Associates and Joint Ventures. For not-for-profit entities it applies to annual reporting periods beginning on or after 1 January 2014. The Department has not yet determined the application or the potential impact of the Standard.

1 Jan 2014Amendments to Australian Accounting Standards – Offsetting Financial Assets and Financial Liabilities [AASB 132]

This Standard adds application guidance to AASB 132 to address inconsistencies identified in applying some of the offsetting criteria, including clarifying the meaning of “currently has a legally enforceable right of set-off” and that some gross settlement systems may be considered equivalent to net settlement.

The model Department does not routinely hold financial assets and financial liabilities that it intends to settle on a net basis, therefore there is no financial impact.

1 Jan 2014Amendments to AASB 136 – Recoverable Amount Disclosures for Non-Financial Assets

This Standard introduces editorial and disclosure changes. There is no financial impact.

1 Jan 2015Amendments to Australian Accounting Standards arising from AASB 9 [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 121, 127, 128, 131, 132, 136, 139, 1023 & 1038 and Int 10 & 12]

[modified by AASB 2010-7]

P a g e | 78

Operative for

reporting periods

beginning

on/after

AASB 2013-4

AASB 2013-8

AASB 2013-9

AASB 2014-1

1 Jan 2014Amendments to Australian Accounting Standards - Australian Implementation Guidance for Not-for-Profit Entities – Control and Structured Entities [AASB 10, 12 & 1049]

The amendments, issued in October 2013, provide significant guidance in determining whether a not-for-profit entity controls another entity when financial returns are not a key attribute of the investor‟s relationship. The Standard has no financial impact in its own right, rather the impact results from the adoption of the amended AASB 10.

1 Jan 20141 Jan 2017

Amendments to Australian Accounting Standards - Conceptual Framework, Materiality and Financial Instruments

This omnibus Standard makes amendments to other Standards arising from the deletion of references to AASB 1031 in other Standards for periods beginning on or after 1 January 2014 (Part B), and, defers the application of AASB 9 to 1 January 2017 (Part C). The Department has not yet determined the application or the potential impact of AASB 9, otherwise there is no financial impact for Part B.

1 Jan 2014Amendments to Australian Accounting Standards – Novation of Derivatives and Continuation of Hedge Accounting [AASB 139]

This Standard permits the continuation of hedge accounting in circumstances where a derivative, which has been designated as a hedging instrument, is novated from one counterparty to a central counterparty as a consequence of laws or regulations. The model Department does not routinely enter into derivatives or hedges, therefore there is no financial impact.

1 Jul 20141 Jan 20151 Jan 20161 Jan 2018

Amendments to Australian Accounting Standards

The Department has not yet determined the application or the potential impact of the Standard.

P a g e | 79

Note 6. Employee benefits expense

2014 2013

$000 $000

Wages and salaries (a) 9,552 9,028

Superannuation - defined contribution plans (b) 984 934

10,536 9,962

Note 7. Supplies and services

2014 2013

$000 $000

Communications 207 179

Consultants and contractors 2,566 1,680

Consumables 305 232

Repairs and maintenance 23 270

Travel 33 89

Advertising and promotion 35 29

Motor vehicle leasing 51 72

Office equipment leasing 15 14

Insurance 80 123

Legal services - Services received free of charge 117 86

Other 281 205

3,713 2,979

Note 8. Depreciation and amortisation expense

2014 2013

$000 $000

Depreciation

Furniture equipment 36 20

Office equipment 178 98

Total depreciation 214 118

AmortisationLicenses 6 0Computer software 340 293

Total amortisation 346 293

Total depreciation and amortisation 560 411

Note 9. Accommodation expenses

2014 2013

$000 $000

Lease rentals 1,265 1,265


1,272 1,271

(b) Defined contribution plans include West State and Gold State (contributions paid).

The charge was a levy applied by Government for the use of its capital. The final charge was levied in 2006-07.

(a) Includes the value of the fringe benefit to the employee plus the fringe benefits tax component, leave entitlements including superannuation contribution component.

(b) Defined contribution plans include West State, Gold State, GESB and other eligible funds.

Employment on-costs expenses, such as workers' compensation insurance, are included at note 10 'Other expenses'.

Employment on-costs liability is included at note 20 'Provisions'.

P a g e | 80

Note 10. Other expenses 2014 2013$000 $000

Restoration costs 7 5

Employment on-costs 5 (8)

Other employee related expenses 99 94

Audit fee (a) 190 154

301 245

Note 11. User charges and fees

2014 2013

$000 $000

Recoups for services provided:

Net Appropriation Revenues

Gaming and Wagering Commission of Western Australia 4,420 4,226

Racing Penalties Appeal Tribunal 168 163

Commonwealth Government 94 89

Liquor fees and other charges 5,651 5,364

10,333 9,842

Note 12. Income from State Government

2014 2013

$000 $000

Appropriation received during the period:

- Service appropriation (a)5,750 4,311 0 0

5,750 4,311

Services received free of charge from other State government agencies

during the period:

Department of Treasury

- Building and Management Works 7 6

Department of the Attorney General

- Legal services 117 86

124 92

5,874 4,403

(a) Service appropriations fund the net cost of services delivered. Appropriation revenue comprises a cash component and a receivable (asset). The receivable (holding account) comprises the budgeted depreciation expense for the year and any agreed increase in leave liabilities during the year.

(a) Audit fee, see also note 27 'Remuneration of auditor'.

P a g e | 81

Note 13. Restricted cash and cash equivalents

2014 2013

$000 $000

Current

Special purpose accounts (refer to note 23) 5 6

5 6

Non-current

Accrued salaries suspense account (a)270 244

270 244

Note 14. Receivables

2014 2013

$000 $000

Current

Receivables 10 163

Allowance for impairment of receivables 0 0

Other receivables 357 288

GST receivable 118 88

Prepayments 48 81

Total current 533 620

Credit Risk

Note 15. Amounts receivable for services (Holding Account)

2014 2013

$000 $000

Current 250 100

Non-current 2,230 1,922

2,480 2,022

Credit Risk

(a) Funds held in the suspense account for the purpose of meeting the 27th pay in a financial year that occurs every 11-years.

Ageing of receivables past due but not impaired based on the information provided to senior Receivables individually determined as impaired at the balance sheet date:The Department does not hold any collateral or other credit enhancements as security for receivables.

The Department has a significant exposure to the Gaming and Wagering Commission of Western Australia. The Commission is expected to settle its debt of $280,972 (2013: $268,640) in due course.

Ageing of receivables past due but not impaired based on the information provided to senior Receivables individually determined as impaired at the balance sheet date:Represents the non-cash component of service appropriations. it is restricted in that it can only be used for asset replacement or payment of leave liability.

P a g e | 82

Note 16. Plant and equipment

2014 2013

$000 $000

Furniture equipment

At cost 442 193

Accumulated depreciation (115) (79)

327 114

Office equipment

At cost 808 720

Accumulated depreciation (500) (521)

308 199

Sub-total 635 313

Add: Work in progress 0 174

Total 635 487

Furniture Office Work in

equipment equipment progress Total

$000 $000 $000 $000

2014

Carrying amount at start of period 114 199 174 487

Additions 249 113 0 362

Transfers 0 174 (174) 0

Disposals 0 (199) 0 (199)

Accumulated depreciation reversal - disposal 0 199 0 199

Depreciation (36) (178) 0 (214)

Carrying amount at end of period 327 308 0 635

Furniture Office Work in

equipment equipment progress Total

$000 $000 $000 $000

2013

Carrying amount at start of period 134 128 86 348

Additions 0 83 174 257

Transfers 0 86 (86) 0

Depreciation (20) (98) 0 (118)

Carrying amount at end of period 114 199 174 487

Reconciliations of the carrying amounts of plant and equipment at the beginning and end of the reporting period are set out in the table below.

P a g e | 83

Note 17. Intangible assets

2014 2013

$000 $000

Licence

At cost 28 0

Accumulated amortisation (6) 0

Accumulated impairment losses 0 0

22 0

Computer software

At cost 5,562 4,191

Accumulated amortisation (2,565) (2,317)

Accumulated impairment losses 0 0

2,997 1,874

Sub-total 3,019 1,874

Add: Work in progress 4,165 993

Total 7,184 2,867

Reconciliations:

Computer Work in

Licenses software progress Total

$000 $000 $000 $000

2014

Carrying amount at start of period 0 1,874 993 2,867

Additions 28 470 4,165 4,663

Transfers 0 993 (993) 0

Disposals 0 (91) 0 (91)

Accumulated amortisation reversal - disposal 0 91 0 91

Amortisation expense (6) (340) 0 (346)

Carrying amount at end of period 22 2,997 4,165 7,184

Computer Work in

Licenses software progress Total

$000 $000 $000 $000

2013

Carrying amount at start of period 0 1,878 289 2,167Additions 0 0 993 993Transfers 0 289 (289) 0

Amortisation expense 0 (293) 0 (293)

Carrying amount at end of period 0 1,874 993 2,867

Note 18. Impairment of assets

Note 19. Payables

2014 2013

$000 $000

Current

Trade payables 202 138

Other payables 23 9

Accrued expenses 372 337

Accrued salaries 237 230

Total current 834 714

There were no indications of impairment to plant and equipment, or intangible assets at 30 June 2014.

The Department held no goodwill or intangible assets with an indefinite useful life during the reporting period.

All surplus assets at 30 June 2014 have been written-off.

Reconciliations of the carrying amounts of intangible assets at the beginning and end of the reporting period are set out in the table below.

P a g e | 84

Note 20. Provisions

2014 2013

$000 $000

Current

Employee benefits provision

Annual leave (a) 240 308

Purchased leave 17 (3)

Long service leave (b) 1,064 910

1,321 1,215

Other provisions

Employment on-costs (c) 132 131

132 131

1,453 1,346

Non-current

Employee benefits provision

Long service leave (b) 467 424

467 424

Other provisions

Employment on-costs (c) 54 50

Restoration costs (d) 206 199

260 249

727 673

2014 2013

$000 $000

Within 12 months of the end of the reporting period 226 279

More than 12 months after the end of the reporting period 14 29

240 308

2014 2013

$000 $000

Within 12 months of the end of the reporting period 323 279

More than 12 months after the end of the reporting period 1,208 1,055

1,531 1,334

Movements in other provisions

2014 2013

$000 $000

Restoration costs provisions

Carrying amount at start of period 199 194

Additional provisions recognised 7 5

Carrying amount at end of period 206 199

Employment on-cost provision

Carrying amount at start of period 181 189

Additional provisions recognised 5 (8)

Carrying amount at end of period 186 181

(b) Long service leave liabilities have been classif ied as current where there is no unconditional right to defer settlement for at least 12 months af ter the end of the reporting period. Assessments indicate that actual settlement of the liabilities is expected to o ccur as follows:

(c) The settlement of annual and long service leave liabilities gives rise to the payment of employment on-costs including workers'

compensation insurance. The provision is the present value of expected future payments.

The associated expense, apart f rom the unwinding of the discount (f inance cost), is disclosed in note 10 'Other expenses'.

(d) At the termination of the lease, the Department has a legal or constructive obligation to dismantle and restore the property at

Level 1, Hyatt Centre, East Perth. The total restoration cost is estimated at $240,000. The present value of the year to date cost is

$206,207.

The associated expense, apart f rom the unwinding of the discount (f inance cost), is disclosed in note 10 'Other expenses'.

Movements in each class of provisions during the period, other than employee benef its, are set out below.

(a) Annual leave liabilities have been classif ied as current as there is no unconditional right to defer settlement for at least 12 months af ter the end of the reporting period. Assessments indicate that actual settlement of the liabilities is expected to occur as follows:

P a g e | 85

Note 21. Other liabilities

2014 2013

$000 $000

Current

Special purpose accounts (refer to note 23) 5 6

Fees in trust 85 44

Total current 90 50

Note 22. Equity

Contributed equity

2014 2013

$000 $000

Balance at start of period 4,325 454

Contributions by owners

Capital appropriation 2,155 3,871

Total contributions by owners 2,155 3,871

Balance at end of period 6,480 4,325

Accumulated surplus/(deficit)

2014 2013

$000 $000

Balance at start of period 1,736 2,359Restated balance at the start of the year 1,736 2,359

Result for the period (175) (623)

Balance at end of period 1,561 1,736

Total Equity at end of period 8,041 6,061

Note 23. Special purpose accounts

Special Purpose Account (a)

Indian Ocean Territories Reimbursement Trust Fund

2014 2013

$000 $000

Balance at start of period 6 18

Receipts 93 77

Payments (94) (89)

Balance at end of period 5 6

(a) Established under section 16(1)(d) of FMA.

The Indian Ocean Territories Reimbursement Trust Fund was established in March 1996 and became operational in July 1996.

The purpose of the account is to hold funds received from the Commonwealth, for services provided by the Department in relation to the regulation of liquor operations on Christmas and Cocos Islands. The balance of the trust fund at the end of the financial year is held in the Department's operating account.

The figures presented below for the Trust Fund have been prepared on a cash basis.

The Government holds the equity interest in the Department on behalf of the community. Equity represents the residual interest in the net assets of the Department.

P a g e | 86

Note 24. Notes to the Statement of Cash Flows

2014 2013

$000 $000

Reconciliation of cash

Cash and cash equivalents 38 2,598

Restricted cash and cash equivalents 275 250

313 2,848

Reconciliation of net cost of services to net cash flows provided by/(used in) operating activities

2014 2013

$000 $000

Net cost of services (6,049) (5,026)

Non-cash items

Depreciation and amortisation expense 560 411


(Increase)/decrease in assets

Current receivables (a)

87 342

Increase/(decrease) in liabilities

Current payables (a)

(99) 30

Current provisions 107 (59)

Non-current provisions 54 (61)

Net GST receipts/(payments) (b)

(12) (9)

Change in GST in receivables/payables (c)

42 14

Net cash provided by/(used in) operating activities (5,186) (4,266)

Note 25. Commitments

Non cancellable operating lease commitments

2014 2013

$000 $000

Within 1 year 960 954

Later than 1 year and not later than 5 years 45 956

Later than 5 years 0 0

1,005 1,910

Capital expenditure commitments

2014 2013

$000 $000

Within 1 year 498 1,768



1,443 2,949

Cash at the end of the financial year as shown in the Statement of Cash Flows is reconciled to the related items in the Statement of Financial Position as follows:

Commitments for minimum lease payments are payable as follows:

Non-cancellable lease commitments include property, office equipment and motor vehicle leases. The property lease is

(a) Note that the Australian Taxation Office (ATO) receivable/payable in respect of GST and the receivable/payable in respect of the sale/purchase of non-current assets are not included in these items as they do not form part of the reconciling items.

(b) This is the net GST paid/received, i.e. cash transactions.

(c) This reverses out the GST in receivables and payables.

The commitments below are exclusive of GST.

Capital expenditure commitments, being contracted capital expenditure additional to the amounts reported in the financial statements, are payable as follows:

Non-cancellable lease commitments include property, office equipment and motor vehicle leases. The property lease is a non-cancellable lease with a three year term, with rent payable monthly in advance. Contingent rent provisions within the lease agreement require that the minimum lease payments shall be increased by 3.5% per annum. An option exists to renew the lease at the end of the three year term for an additional term of two years.

P a g e | 87

Note 25. Commitments (contd)

Other expenditure commitments

2014 2013

$000 $000

Within 1 year 277 1,170



732 1,849

Note 26. Remuneration of senior officers

2014 2013$

110,001 - 120,000 0 1

130,001 - 140,000 0 3

140,001 - 150,000 2 1

150,001 - 160,000 3 0

170,001 - 180,000 0 0

190,001 - 200,000 0 1

220,001 - 230,000 1 0

290,001 - 300,000 0 1330,001 - 340,000 1 0

$000 $000

Base remuneration and superannuation 1,276 1,187

Annual leave and long service accruals 12 (40)

Other benefits 26 25

Total remuneration of senior officers 1,314 1,172

Note 27. Remuneration of auditor

2014 2013

$000 $000

Auditing the accounts, financial statements and key performance indicators 73 71

Compliance audit 119 86

192 157

The number of senior officers whose total fees, salaries, superannuation, non-monetary benefits and other benefits for the financial year fall within the following bands are:

The total remuneration includes the superannuation expense incurred by the Department in respect of senior officers.

Remuneration paid or payable to the Auditor General (a) in respect of the audit for the current financial year is as follows:

(a) The fee for the 2012-13 audit ($71,000) was due and payable in the 2013-14 financial year.

The fee for the 2013-14 audit ($72,500) will be due and payable in the 2014-15 financial year.

Other expenditure commitments, namely administrative expenditure, contracted for at the end of the reporting period but not recognised as liabilities, are payable as follows:

P a g e | 88

Note 28. Explanatory statement

2014 2014

Estimate Actual Variance

$000 $000 $000

5,065 5,750 685

2014 2013 Variance

$000 $000 $000

Total appropriation provided to deliver services for the year (a) 5,750 4,311 1,439

Total income (b) 10,333 9,842 491

Service Expenditure

Significant variances between estimate and actual for 2014

2014 2014


$000 $000 $000

Service 1 - Evaluation and determination of applications 7,261 8,191 930

Service 2 - Compliance audits and inspections 7,262 8,191 929

2014 2013 Variance

$000 $000 $000

Service 1 - Evaluation and determination of applications 8,191 7,434 757

Service 2 - Compliance audits and inspections 8,191 7,434 757

The Summary of Consolidated Fund Appropriations and Revenue Estimates discloses appropriations and other statutes expenditure estimates, the

Total appropriations provided to deliver services

Significant variances between estimate and actual for 2014

Significant variations between estimates and actual results for income and expense as presented in the financial statement titled 'Summary of Consolidated Account Appropriations and Income Estimates' are shown below. Significant variations are considered to be those greater than 10% or $100,000.

The increase in the expenditure of Service 1 and Service 2 was mainly due to the increased expenditure associated withpositions reclassification as a result of an organisational restructure, delivery of the Liquor Review ($187,000), and the implementation of the Unified Regulatory System and the decommissioning of shared services.

The increase in the expenditure of Service 1 and Service 2 was mainly due to the increased expenditure associated withpositions reclassification as a result of an organisational restructure, delivery of the Liquor Review ($187,000), and the implementation of the Unified Regulatory System and the decommissioning of shared services.

Total appropriations provided to deliver services

(a) Total appropriation provided to deliver services for the year - The variance of $1.439 million was largely attributed to the funding associated with the implementation of the Unified Regulatory System and the decommissioning of shared services project.

(b) Total income- The variance of $491,000 was mainly due to the higher fee revenues received.

Significant variances between actual results for 2014 and 2013

Significant variances between actual results for 2014 and 2013

The variance was mainly due to additional appropriation for the implementation of decommissioning of shared services project in 2013-14.

P a g e | 89

Note 28. Explanatory statement (contd)

2014 2014


$000 $000 $000

2,155 2,155 0

2014 2013 Variance

$000 $000 $000

2,155 3,871 (1,716)

Total administered transactions

Significant variances between estimate and actual for 2014, and actuals for 2014 and 2013

2014 2014


$000 $000 $000

Administered grants and transfer payments 113,347 112,934 413

Amount Authorised by Other Statutes 5,000 1,604 3,396

- Liquor Control Act 1988

118,347 114,538

2014 2013 Variance

$000 $000 $000

Administered grants and transfer payments 112,934 100,499 12,435

Amount Authorised by Other Statutes 1,604 2,211 (607)

- Liquor Control Act 1988

114,538 102,710

2014 2014


$000 $000 $000

Casino tax 130,000 127,459 2,541

2014 2013 Variance

$000 $000 $000

Casino tax 127,459 110,579 16,880

Significant variances between actual results for 2014 and 2013The variance was due to the implementation of the Unified Regulatory System and the decommissioning of shared services in 2012-13.

Administered grants and transfer payments

Administered Income

Significant variance between estimate and actual for 2014, and actuals for 2014 and 2013

Administered Grants and Transfer Payments


2010 casino gross revenue was higher than budgeted.

2014 Casino Taxable Revenue was higher than the 2013 revenue.


The claims for administered grants and transfer payments in 2014 were lower than anticipated.

Amount Authorised by Other Statutes - Liquor Control Act 1988

The claims for liquor subsidies lodged were significantly lower than anticipated.

2014 Casino Taxable Revenue was lower than budgeted.



Capital contribution

Significant variances between estimate and actual for 2014No variance. Capital contribution related to the implementation of the Unified Regulatory System and the decommissioning of

shared services.

Administered Grants and Transfer PaymentsThe claims for administered grants and transfer payments in 2014 were higher than those in 2013.

Amount Authorised by Other Statutes - Liquor Control Act 1988The claims lodged in 2014 were lower than those in 2013.

P a g e | 90

Note 29. Financial instruments

(a) Financial risk management objectives and policies

(b) Categories of financial instruments

2014 2013

$000 $000

Financial Assets

Cash and cash equivalents 38 2,598

Restricted cash and cash equivalents 275 250

Receivables (a) 2,895 2,554

Financial Liabilities

Financial liabilities measured at amortised cost 924 764

(a) The amount of receivables excludes GST recoverable from the ATO (statutory receivable).

The Office has subrogated commitments in respect of leasing arrangements made by the Government Property Office for office accommodation and

Financial instruments held by the Department are cash and cash equivalents, restricted cash and cash equivalents, receivables , and


Market riskMarket risk is the risk that changes in market prices such as foreign exchange rates and interest rates will affect the Department's income or the value of its holdings of financial instruments. The Department does not trade in foreign currency and is not materially exposed to other price risks.

The Department is not exposed to interest rate risk because all cash and cash equivalents and restricted cash are non-interest bearing, and have no borrowings.

The carrying amounts of each of the following categories of financial assets and financial liabilities at the end of the reporting period are:

Financial instruments held by the Department are cash and cash equivalents, restricted cash and cash equivalents, receivables and


Liquidity riskLiquidity risk arises when the Department is unable to meet its financial obligations as they fall due.

The Department is exposed to liquidity risk through its trading in the normal course of business.

The Department has appropriate procedures to manage cash flows by monitoring forecast cash flows to ensure that sufficient funds are available to meet its commitments.

Financial instruments held by the Department are cash and cash equivalents, restricted cash and cash equivalents, receivables and payables. The Department has limited exposure to financial risks. The Department's overall risk management program focuses on managing the risks identified below.

Credit riskCredit risk arises when there is the possibility of the Department's receivables defaulting on their contractual obligations resulting in financial loss to the Department.

The maximum exposure to credit risk at balance sheet date in relation to each class of recognised financial assets is the gross carrying amount of those assets inclusive of any allowance for impairment, as shown in the table at Note 29(c) 'Financial Instruments Disclosures' and Note 14 'Receivables'.

Credit risk associated with the Department's financial assets is minimal because the main receivable is the amounts receivable for services (holding account). For receivables other than government, the Department trades only with recognised, creditworthy third parties. The Department has policies in place to ensure that sales of products and services are made to customers with an appropriate credit history. In addition, receivable balances are monitored on an ongoing basis with the result that the Department's exposure to bad debts is minimal. At the balance sheet date there were no significant concentrations of credit risk.

P a g e | 91

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P a g e | 92

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P a g e | 93

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P a g e | 94

Note 30. Services provided free of charge

2014 2013

$000 $000

Department of Local Government and Communities 427 0

State Heritage Office 102 0

Equal Opportunity Commission 91 0

620 0

Note 31. Contingent liabilities and contingent assets

Note 32. Events occurring after the end of the reporting period

Note 33. Supplementary financial information

(a) Write-offs

(b) Losses through theft, defaults and other causes

There was no record of losses through theft, defaults and other causes in 2014.

The Department did not write off any public property, revenues and debts due to the State, during the financial year.

The Department is not aware of any matters or circumstances that have arisen since the end of the financial year to the date of this report which has significantly affected or may significantly affect the activities of the Department, the results of those activities or the state of affairs of the Department in the ensuing or any subsequent year.

During the period the following services were provided to other agencies free of charge for functions outside the normal operations of the Department:

Contingent liabilities

The Department is aware of the 2.75% pay increase negotiated in the General Agreement 6. The quantified amount of salary and super payable as a result of the pay increase for the financial year is $11,127.

Contingent assets

The Department is not aware of any contingent assets at the end of the reporting period.

P a g e | 95

DEPARTMENT OF RACING, GAMING AND LIQUOR

NOTES TO THE FINANCIAL STATEMENTS


Note 34. Administered expenses and income

2014 2013

$000 $000

COST OF SERVICES

Expenses

Transfer payments for liquor subsidies, gambling tax rebates, and other subsidies 115,317 103,554

Receipts paid into Consolidated Fund 125,849 110,282

Total administered expenses 241,166 213,836

Income

Appropriations for liquor subsidies, gambling tax rebates, and other subsidies 114,538 102,710

Taxes collected under the Casino (Burswood Island) Agreement Act 1985 127,459 110,579

Other revenue 0 1,184

Total administered income 241,997 214,473

2014 2013

$000 $000

Transfer Payments made for the year :

Grants and subsidies to Government Agencies 46,579 40,887

Grants and subsidies to Others 68,738 62,667

Total 115,317 103,554

Note 35. Administered assets and liabilities

2014 2013

$000 $000

Assets

Current

Cash and cash equivalents 2,519 3,285

Receivables 10,350 8,808

TOTAL ADMINISTERED ASSETS 12,869 12,093

Liabilities

Current

Payables 932 986

TOTAL ADMINISTERED LIABILITIES 932 986

The 'Compliance audits and inspections' of the Department was responsible for the administration of the Administered Transactions. The requirement to disclose the Administered Income and Expenses by Service is therefore not applicable.

P a g e | 96

KEY PERFORMANCE INDICATORS

Key performance indicators (KPIs) are required by the Financial Management Act 2006 and are provided to assist interested parties such as Government, Parliament and community groups in assessing an agency‟s performance in meeting its desired outcomes. KPIs measure the effectiveness and efficiency of an agency.

CERTIFICATION OF KEY PERFORMANCE INDICATORS I hereby certify that the key performance indicators are based on proper records, are relevant and appropriate for assisting users to assess the performance of the Department of Racing, Gaming and Liquor, and fairly represent the performance of the Department of Racing, Gaming and Liquor for the financial year ended 30 June 2014.

Barry A Sargeant DIRECTOR GENERAL 8 September 2014

P a g e | 97

DETAILED INFORMATION IN SUPPORT OF KEY PERFORMANCE INDICATORS

Desired outcome: To regulate, monitor and enforce responsible and lawful gambling

and liquor services. The Department is engaged in a range of activities and provides a number of core services to the public of Western Australia to ensure that government objectives and desired outcomes are achieved. In particular, the Department provides:

Licensing, inspectorial and audit services for the liquor and gambling industries;

Expertise and experience in structuring legislation and policy relevant to the liquor and gambling industries; and

Information and support to stakeholders, as well as programs designed to raise awareness of relevant legislation and policies.

Key Effectiveness Indicator

2010/11 Actual

2011/12 Actual

2012/13 Actual

2013/14 Target

2013/14 Actual

Licensees/service providers that comply with audit requirements and statutory criteria3

96% 96% 94% 93% 96%

Conducting compliance audits and inspections contributes to the promotion, monitoring and enforcement of responsible and lawful gambling and liquor services. Effectiveness can be measured by the percentage of licensees and service providers that complied with audit requirements and statutory criteria. Areas of non-compliance typically include:

conducting activities without a valid permit or licence, for example:

• conducting gaming (e.g. bingo) when permit has expired;

• liquor license holders failing to maintain incident registers;

• overcrowding at licensed premises; and

• not having an approved manager on the premises.

breaching conditions of permits, for example:

• permit holders failing to submit financial returns;

• standard lotteries failing to maintain records; and

• continuing lotteries failing to conduct monthly reconciliations.

3 The Key Effectiveness Indicator is calculated by determining the number of licensees/service providers that complied with audit requirements and statutory criteria as a percentage of the total number of audits/inspections conducted in the year.

P a g e | 98

Service 1: Licensing – Evaluation and determination of applications

Key Efficiency Indicator 2010/11 Actual

2011/12 Actual

2012/13 Actual

2013/14 Target

2013/14 Actual

Average cost of determining applications4

$469 $483 $477 $468 $522

The average cost of determining applications can change for each reporting year as a result of increases or reductions in the number of licences determined, combined with the allocated cost of providing the licensing service, where the cost of providing the service is a fixed cost. This means the more applications that are determined in a given year the less it costs on average to determine applications. Conversely, if fewer applications are determined in a given year, then it costs more on average to determine applications. In addition, any variations to the allocated cost will also impact upon the average cost of providing the service.

Licence Type 2012/13 Actual

2013/14 Actual

Difference

Liquor 11,890 12,126 236

Gaming 2404 2450 46

Racing 67 50 (17)

Casino 1219 1051 (168)

Totals 15,580 15,677 97

The Department evaluated and determined 97 more applications compared to the previous year. The average cost to determine each application has increased by $54 from the target for this year. This is due to an overall increase in the allocated cost of providing the licensing service, despite there being an increase in number of applications.

4 The efficiency indicator for this activity is derived by dividing the cost of allocation for the activity by the number of licenses and permits determined.

P a g e | 99

Service 2: Compliance audits and inspection

Key Efficiency Indicator 2010/11 Actual

2011/12 Actual

2012/13 Actual

2013/14 Target

2013/14 Actual

Average cost of conducting inspections5

$629 $891 $862 $878 $1124

The cost of inspections can change for each reporting year as a result of increases or reductions in the number of audits and inspections carried out, combined with the cost of allocation to provide a compliance service.

This means the more investigations, audits and inspections conducted in a given year, the less it costs on average to conduct inspections. Conversely, if fewer investigations, audits and inspections are conducted in a given year, then it costs more on average to conduct inspections/investigation.

The average cost of conducting inspections has increased by $246 from the target for this year. This is due to an overall increase in the allocated cost of providing the compliance audits and inspections, despite there being an increase in the number of assessments conducted.

In 2013/14 the estimated target was 5676 investigations, audits, inspections and assessments conducted; and in 2013/14 there were 7289 actual investigations, audits, inspections and assessments conducted. This means the difference is 1613. A breakdown of the figure is provided in the table below:

Audits/Inspections/Investigations/Assessments 2012/13 Actual

2013/14 Actual

Difference

Racing 395 522 127

Lotterywest 748 756 8

Gaming 349 280 (69)

Casino 2372 3021 649

Liquor 1812 2710 898

Total 5676 7289 1613

The overall increase to actual compared to targets was due to an increase in audits and inspections, along with availability of staff.

5 The efficiency indicator for this activity is derived by dividing the cost of allocation for the activity by the number of inspections and audits conducted.

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MINISTERIAL DIRECTIVES

There were no Ministerial Directives during the reporting period.

OTHER FINANCIAL DISCLOSURES

PRICING POLICIES OF SERVICES PROVIDED

When analysing its fees and charges, the Department considers the Department of Treasury‟s recommendation that agencies‟ fees and charges should achieve full cost recovery where applicable. In addition, the Department also considers the Joint Standing Committee on Delegated Legislation‟s recommendations that fees and charges do not exceed cost recovery and/or do not cross subsidise. In setting fees, the Department recognises that not for profit organisations and charitable bodies form a large part of the Department‟s customer base. Fees for services levied under the respective Regulations should not pose a barrier to entry for those organisations attempting to raise funds through lawful liquor and gambling activities. The Department is fully aware that increasing the fees to meet cost recovery will actually impose barriers to entry, which the Department is reluctant to do. Consistent with the Department of Treasury‟s instructions, increases that approximate CPI or catch up on CPI applied over previous years are to be considered routinely by the Minister. The Department‟s fees and charges were increased on 1 January 2014. The list of fees and charges are available on the Department‟s website at www.rgl.wa.gov.au and are reviewed annually.

CAPITAL WORKS

The Department spent $4.81 million on capital expenditure over two years (from 2012/13 to 2013/14) to develop and implement a Unified Regulation System to replace legacy licensing systems. This will put the Department in a better position to deliver modern, effective and efficient services to the Western Australian community. This upgrade will support the Department‟s strategic goals of e-government and “citizen centric” services, by providing online licensing services to the community. In addition, the Department has spent $1.49 million on replacing corporate infrastructure in accordance with IT best practice. This includes fitting out a server room with new servers to support the Department‟s responsibilities in the hosting of financial system obligations to a cluster of Government agencies, such as Department of Local Government and Communities, the Equal Opportunity Commission and the State Heritage Office.


P a g e | 104

EMPLOYMENT AND INDUSTRIAL RELATIONS

THE DEPARTMENT’S STAFF PROFILE

2012/13 2013/14

Full-time permanent 92 96

Full-time contract 9 2

Part-time measured on an FTE basis 9 7.5

On secondment 0 0

Total FTE 110 105.5

The Department is committed to training and developing its employees, in order to build a highly skilled, professional and ethical workforce with the ability to adapt to changing business, technology and environmental needs.

During the year, the Department‟s training and development program covered the following areas:

Fire warden training;

Senior first aid;

Occupational health and safety;

Leadership development;

Public sector induction;

Mentoring;

Corruption and misconduct;

Job application and interview skills;

Recruitment and selection;

IT systems and desktop applications;

Accountable and ethical decision-making;

Grievance officer training; and

Traineeships.

WORKERS’ COMPENSATION During the reporting period, there were no workers‟ compensation claims lodged.

P a g e | 105

GOVERNANCE DISCLOSURES

CONTRACTS WITH SENIOR OFFICERS

At the date of reporting, other than normal contracts of employment of service, no senior officers, or firms of which senior officers are members, or entities in which senior officers have substantial interests had any interests in existing or proposed contracts with the Department and senior officers.

OTHER LEGAL REQUIREMENTS

ADVERTISING

In accordance with section 175ZE of the Electoral Act 1907, the Department must report any expenditure incurred for advertising, market research, polling, direct mail and media advertising. Total advertising expenditure for 2013/14 was $21,222 with expenditure incurred in the following areas:

Government Agencies $21,057

Market research organisations $0

Polling organisations $0

Direct mail organisations $0

Media advertising organisations $165

Total $21,222

DISABILITY ACCESS AND INCLUSION PLAN OUTCOMES

The Department‟s updated Disability Access and Inclusion Plan 2014-19 is available on the Department‟s website (www.rgl.wa.gov.au) The plan details the Department‟s disability services priorities to meet the needs of customers (and their carers and families) with physical, intellectual, sensory and cognitive disabilities. The Department recognises the importance of making its services, building and information accessible for people with disabilities.

COMPLIANCE WITH PUBLIC SECTOR STANDARDS AND ETHICAL CODES

The Department encourages a culture of openness, honesty and responsibility which is set out in the customer service charter and code of conduct. This includes ensuring employees are provided with adequate training and materials to ensure they are fully aware of their ethical responsibilities and can deliver our services with integrity. The Department is committed to achieving high standards in ensuring compliance with the public sector standards, the WA Public Sector Code of Ethics and the Department‟s Code of Conduct. The Department is also committed to continually seeking opportunities to improve current practices through internal auditing, reviewing of policies and


P a g e | 106

procedures and through performance management and feedback. The following is an overview of the Department‟s activities with respect to compliance with public sector standards and ethical codes: Recordkeeping Plans

The Department is committed to continuously improving recordkeeping practices consistent with the State Records Act 2000, and it aims for best practice recordkeeping practices. During the reporting period, the Department conducted an awareness pilot program in relation to personal and confidential information with the intention of rolling it out to all officers. The records management system, TRIM, used by the Department for its records is under review; it will be updated when the review is completed with changes to the security options, retention schedules and other changes to be determined.

NEW INITIATIVES FOR THE YEAR Leadership

The Department of Racing, Gaming and Liquor strives to ensure its leadership team has the attributes to lead the organisation through a period of significant change and deliver services that meet the expectations of Government, industry and the community. A 12-month program was launched in October 2013 that focuses on leadership style and behaviour in the context of the organisation‟s preferred culture and values. The program also incorporates the role of managers in leading teams through periods of change.

Traineeships

The Department has run a 12-month traineeship program for two young people who were employed on a full-time basis. The two trainees successfully gained a nationally recognised Certificate III in Government qualification.

Performance Recognition Awards 2013

Each year the Department recognises both individual staff and teams for outstanding work through the following Recognition Program. The awards identify and recognise behaviour in line with the Departments‟ values to support the “RETHINK” cultural change program. The following awards were recognised during this reporting period.

Excellence and Innovation Award

Granted to an employee who streamlines existing (or introduces new) work processes, practices or technologies that result in an effective, efficient improvement to business activities.

P a g e | 107

Customer Service Award

Granted to an employee who embodies professionalism and delivers high quality service to internal and/or external customers.

Teamwork Award

Granted to an individual or group that demonstrates effective collaboration, honours their commitments, shows respect to their colleagues and takes ownership of team outcomes and productivity.

Professional Development Award

Granted to an employee who has shown a commitment to (and achievement of) professional growth, including a willingness to learn and apply new skills in the workplace.

GOVERNMENT POLICY REQUIREMENTS

SUBSTANTIVE EQUALITY

The Department of Racing, Gaming and Liquor is committed to the elimination of systematic racial discrimination from all policies and practices, in accordance with the Policy Framework for Substantive Equality.

OCCUPATIONAL SAFETY, HEALTH AND INJURY MANAGEMENT

As a responsible employer, the Department of Racing, Gaming and Liquor recognises and accepts its obligation to provide employees with, as far as practicable, the highest possible standards of safety. The achievement of this objective is both an individual and a shared responsibility that requires commitment from both management and employees. It is particularly important that responsibilities are accepted and a willingness to cooperate in the elimination of workplace hazards is demonstrated by all staff members. The Department believes that workplace accidents and injuries are preventable and the safety and health of employees is paramount. The Department‟s Occupational Health and Safety Policy commits the Department to the provision of a safe and healthy working environment for all employees through the provision of a comprehensive safety and health program. In meeting its responsibilities, the Department undertakes to provide and maintain a working environment that is safe and without risks to health.

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In particular the Department will:

Provide and maintain safe plant, equipment and systems of work;

Make and monitor arrangements for the safe use, handling, storage, and transport of plant and substances;

Maintain the workplace in a safe and healthy condition;

Provide health surveillance for designated staff;

Provide adequate resources to implement the policy and programs introduced for the safety and health of all employees; and

Provide information, training and supervision for employees so that all work related activities may be conducted in a safe and healthy manner.

CONSULTING EMPLOYEES ON OHS AND INJURY MANAGEMENT ISSUES

The Executive Director Governance and Strategy and the Occupational Health and Safety Committee are responsible for coordinating consultations on OHS issues. In the past 12 months, this has included consultations on a range of issues.

INJURY MANAGEMENT

The Department‟s Governance and Strategy Division coordinates the implementation of the Occupational Health and Safety Program, and provides consultancy and advisory services on legislation, best practice and other initiatives associated with the program. The Department‟s Occupational Health and Safety Committee, with assistance from the Governance and Strategy Division, has an Occupational Health and Safety Program and Policy, which was developed by both management and employees. The Occupational Health and Safety Program requires that employees at all levels understand and accept specific responsibilities associated with their positions. The safety and health program includes strategies to prevent incidents and accidents in the workplace, such as:

Induction and training;

Safe work procedures and guidelines on safe behaviour;

Provision for workplace inspections;

Display of safety information;

Publishing of emergency procedures;

First aid and emergency assistance;

Incident reporting and investigation;

A rehabilitation program; and

An employee assistance program.

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ASSESSMENT OF OHS MANAGEMENT SYSTEMS

The Department is committed to ensuring its OHS management systems are fit for purpose.

LOST TIME INJURY SEVERITY RATE

INDICATOR 2013/14

Number of fatalities 0

Lost time injury/disease incidence rate N/A

Lost time injury severity rate N/A

Percentage of injured workers returned to work within: i) 13 weeks ii) 28 weeks

N/A

Department of Racing, Gaming and Liquor · Racing, Gaming and Liquor for the financial year ended 30 June 2014. The Annual Report has been prepared in accordance with the provisions

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