annual review 2020 - standards.org.au

2020 Annual Review

ABOUT US

Australia’s peak independent, non-government, not-for-profit standards organisation and developer of Australian Standards®

MISSION

Empowering communities

VISION

A global leader in trusted solutions that improve life – today and tomorrow

Cladding receives guidance 11

Smarter, safer, sustainable cities 15

Broadening access to our content 19

Contents

Chairman’s report 4

CEO’s report 6

Standards development performance 8

Standard solutions 10

A year of significant challenge 12

Renewing energy options 14

Standards in the digital age 14

An international organisation 16

Business transformation 18

Our people 20

Standards Awards 21

Financial overview 22

Directors’ report 24

Auditor’s independence declaration 30

Directors’ declaration 31

Statement of profit or loss and other

comprehensive income 32

Statement of financial position 33

Statement of changes in equity 34

Statement of cash flows 35

Notes to the financial statements 36

Independent auditor’s report 44

Member organisations 46

Standards Australia Limited – 2020 Annual Review 5Chairman’s report

commitment that we are able to

develop and adopt world-class

standards for Australia.

This is my last report as Chair

of the Board as my term ends in

November 2020. I will remain on the Board until next

November 2021. I want to take this somewhat early

opportunity to thank our members, the directors I

have served with, our stakeholders, and staff for the

support they have shown me through my tenure.

In my opinion, the last five years have seen the most

significant changes and innovations in Standards

Australia’s recent history.

The recovery of the right to distribute standards

by the termination of the publishing and licence

agreement required an enormous commitment by the

executive team in conjunction with our legal advisors

and counsel. Without the successful finalisation

of the previous arrangements, the implementation

of our new distribution arrangements and digital

strategy would not be possible.

As part of our vision to be a leader within the

‘Standards World’ we saw many other achievements

such as the ongoing improvement in our

communications, standards development processes,

staff and technical committee training, young leaders

program, and the governance reviews.

It is remarkable what we have achieved over the last 11

years, and I look forward to cheering from the sidelines

once my term on the Board ends, and watching

Standards Australia go from strength to strength.

Richard Brooks – Chairman

The last 12 months have been some of

the most challenging in Australia’s

history, with the bushfires that plagued

many parts of our country and the most significant

health and economic shock of our lifetime. I know

that many of you are actively involved in helping

Australia rise to these challenges, and will

continue to play an integral role in the next phase

of the national response.

If there is any positive effect coming out of this

time, it must be on our national resilience. The

question of resilience was one that the Standards

Australia Board spent a day working through in

February as we met for our strategy discussions

with the executive team. This was a momentous

discussion for us as we came to the end of our

5-year strategic plan.

In 2017, the Board presented a broad and

ambitious plan to improve the contributor

experience, lay the foundations needed for a

digital Standards Australia, and embark on the

task of resetting our distribution arrangements

and ensuring that our standards development

process remained fit for purpose. We were mostly

successful in the execution of this plan. As we

move into our next strategic horizon, we need

to be even more focused on delivering for the

Australian community.

I would like to thank the Directors for their work

this year through very challenging times. While

the short, mid and long-term financial impact of

the pandemic is yet to be known, I am thankful

to the Finance Risk and Audit committee for

managing the company’s risk. Standards

development will forever be the lifeblood of

the company. The work of the Standards

Development and Accreditation committee again

this year has us in good stead as we continue to

focus on building capability in this area.

My biggest thanks in closing, goes to our staff

and contributors. It is because of their continuing

As I write these remarks, it occurs to me that in my lifetime, Australia has not faced anything near what it has faced over the last 12 months.

Standards Australia Limited – 2020 Annual Review 7CEO’s report

As the National Standards Body and

developer of Australian standards,

we have been dedicated to

delivering the best results we can, both

domestically and internationally.

Our goal, simply put, is to help Australian

industry, government and the community

broadly, to develop or adopt trusted solutions

that empower and enable them to deliver on

our economic and social advancement.

Our role and goal have taken on a renewed

importance in the context of the rapidly

changing geopolitical and economic

environment – change that will likely

accelerate in the post-COVID-19 environment.

New global dynamics and challenges are

emerging, impacting political stability,

global sustainability and cooperation,

and competition for the ownership and

commercialisation of emerging technology

and critical resources.

These global changes and challenges

are awakening awareness among senior

policymakers and public commentators

on the strategic role standards play in

international technology development and

deployment and other key matters that

underpin Australia’s national sovereignty and long-

term prosperity. These include, among other things,

supply chain stability, security, local manufacturing,

and the maintenance of open rules-based

international order.

As Australia addresses these challenges, it is the

role of Standards Australia to maximise the value

we can add and deliver trusted solutions where

required.

Our vision is simply a clear statement of this intent.

To be a world leader in what we do and how we do

it – for the benefit of Australia.

Our new strategic plan builds on our success

to-date. It is an extension of what we have been

working towards over the past five years.

We have been improving and innovating on

standards development and engagement and

other aspects of our business, like our distribution

arrangements.

We are now building new functions from scratch

in our business around distribution, product

development, and retail operations.

In working with the Board and Executive Team, I am

excited that as we head into this next strategic plan

we do so from a strong base and with an absolute

focus on meeting the needs of our customers.

what we hope will be one of the best customer

experiences for standards that we hope will go

live early next year.

We are settling in our first new distributors

and working with others on new opportunities.

We are implementing new systems to ensure

our compliance with competition law on the

distribution of standards and we are upskilling in

not almost, but every sector of our business.

I want to acknowledge all of the hard work

that has gone into standards development

over the last 12 months from so many of our

contributors, members, and governments. It’s

been a challenging time for us all. Our almost

instant move to remote working was something

I never thought I’d see in my lifetime. One of the

few benefits of this period is that we are now

looking at how we can make remote working for

our stakeholders and us the new normal.

Adrian O’Connell, Chief Executive

When we talk about customers, we mean

equally the committee members and

stakeholders that we work with and empower

through the adoption and development of

standards where they are needed and those

who use and purchase them down the line.

For an organisation of our size, this is a

significant endeavour. These are substantial

transformative changes. We are committed

to success, not only for us but also for

the those we work with and the broader

Australian community.

Our new strategic plan has value and service

at the core of our four strategic objectives,

Reputation, Reach, Relevance, and Revenue.

If a vision is going to become a reality, then it

needs an action plan sitting behind it.

You will see that we are very focused on core

engagement and standards development

work. This includes implementing the next

set of outcomes of the Technical Governance

Review. We are also focused on upskilling our

contributors and ourselves through our learning

and development programs.

On the technology front, we will continue our

work building better systems and support for

our stakeholders and staff. We are building

Technical standardisation, often unnoticed by the general public and policy makers, has been a critical enabler of trade, economic development, and social development for decades.

As Australia addresses challenges, it is the role of Standards Australia to maximise the value we can add and deliver trusted solutions where required. Our vision is simply a clear statement of this intent. To be a world leader in what we do and how we do it – for the benefit of Australia.

Standards Australia Limited – 2020 Annual Review 9Standards development performance

Australian Standards 5,162

Amendments 1,046

Supplements 156

Rulings 18

Handbooks 165

Miscellaneous Products/Publications 30

Technical Specifications/Reports 173

Participating Members 5,816

Nominating Organisations 2,937

Active Technical Committees 371

Active Subcommittees 421

Active Working Groups 368

Stakeholders Active projects: 432

Total catalogue

Australian Standards®

(40% joint AS/NZS)

287 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII

Amendments 57 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII

Handbooks 3 II

Supplements 1

Technical Specifications 12 IIIIIIIIIII

Technical Reports 11 IIIIIIIIII

Rulings 1

Production FY 2020 372

6,750

Notable publications

ISO/IEC 27102:2019 Information security management – Guidelines for cyber-insurance

AS 4253:2019 Mailboxes

AS 2080:2019 Safety glazing for land vehicles

SA TS 5344:2019 Permanent labelling for Aluminium Composite Panel (ACP) products

AS/NZS 5139:2019 Electrical installations – Safety of battery systems for use with power conversion equipment

SA/SNZ HB 331:2020 Overhead line design handbook

AS/NZS 3000:2018 Amd 1:2020 Electrical installations (known as the Australian/New Zealand Wiring Rules)

AS/NZS 1158.2:2020 Lighting for roads and public spaces, Part 2: Computer procedures for the calculation of light technical parameters for Category V and Category P lighting

AS/NZS 2063:2020 Helmets for use on bicycles and wheeled recreational devices

AS ISO 16111:2020 Transportable gas storage devices – Hydrogen absorbed in reversible metal hydride

AS/NZS 2500:2020 Safe use of medical electrical equipment in health care

AS ISO 37122:2020 Sustainable cities and communities – Indicators for smart cities

Projects by age

0 – 2 years 375

2 – 4 years 53

4+ years 4

22% Electrotechnology and Energy

16% Building and Construction

16% Manufacturing and Processing

10% Public Safety; Public Admin; Business & Mgmt

9% Mining

6% Consumer Products and Services, Safety

5% Communications; Info Tech and e-Commerce

5% Water and Waste Services

4% Transport and Logistics

3% Health and Community Services

3% Agriculture, Forestry, Fishing and Food

1% Education and Training Services

Projects by sector

10 Standards Australia Limited – 2020 Annual Review 11

The role of standards, often unnoticed, underpins

Australian life, keeping us safe, building economic

value, and connecting Australia to the world.

Cladding receives guidanceDevastating fires in Australian high-rise buildings

have again highlighted the fire safety risks arising

from the non-compliant use of external cladding,

particularly Aluminium Composite Panel (ACP) with a

100% polyethylene (PE) core.

The technical specification SA TS 5344:2019,

Permanent labelling for Aluminium Composite Panel

(ACP) products, provides minimum requirements for

the marking of ACPs to enable their identification

throughout the life of the product.

The publication saw stakeholders coming together to

address community concerns quickly and efficiently.

Completed in just 3 months and immediately

accepted for referencing in Australia’s National

Construction Code (NCC), this guidance redefined

the standards development process, challenging the

perception that producing quality content is lengthy

and difficult.

Connecting Australian communitiesAustralia is no stranger to extreme weather

conditions and with a huge number of towns

and cities hundreds of kilometres apart, strong

powerlines are integral in keeping communities

connected.

SA/SNZ HB 331:2020, Overhead line design,

guides the design, construction and maintenance of

overhead powerlines. This handbook aims to ensure

that powerlines are suitably resistant to the exposure

of extreme climate conditions and designed in a safe

and consistent manner.

With the significant impact of bushfires in our

country, the handbook includes construction of

powerlines in bushfire prone areas as well as safety

clear zones, vegetation management and high

voltage live working considerations.

Stamping out mail theftConversations around privacy are focused heavily on

cyber and data protection, however 29 percent of

Australians still aren’t locking their letter boxes.

Credit cards, payslips and personal identification are

among the many documents taken from mailboxes

across Australia. AS 4253:2019, Mailboxes, aims

to help combat mail theft and identity fraud by

improving the security of individual mailboxes and

banks of mailboxes.

This standard was welcomed by industry in a

time where communities are seeing more and

more apartment buildings, which are often leaving

mailbox banks on the street sidewalk in full view

of passers-by. AS 4253:2019 outlines guidance

around secure entry to banks of mailboxes,

including where they should be placed and how

they can be accessed.

Protecting our water systemsDebates around what is appropriate to flush were

only heightened by COVID-19 and the toilet paper

shortages that came with it. Consumers and industry

were left seeking clarity in what can be flushed down

the toilet.

DR AS/NZS 5328, Flushable products, is currently

in development and will aim to outline methods to

determine which products are suitable to be flushed

down a domestic toilet and establish appropriate

consumer disposal labelling requirements.

Road to safetyMany Australians are using their cars every single day

both on bumpy regional roads and weaving through

small city streets. The glazing of windscreens is an

important aspect to the safety of vehicles making

AS 2080:2019, Safety glazing for land vehicles, a key

addition to the sector.

This standard specifies methods of testing for

windscreens and other glazing for power-driven

land vehicles. It aims to promote awareness across

the industry of the agreed requirements around

windscreens, which in turn assists in building the

confidence of road users.

From manufacturers to the general public, this

standard is an important addition in increasing

certainty around the safe design of windscreens.

Standard solutions


The end of last year and beginning of 2020

saw Australia in the grips of a bushfire

crisis, with the already challenging recovery

process compounded by the emergence of

COVID-19. These two events have shaped

much of 2020. While devastating, Australians

have come together in a show of compassion

and strength. The international standards

development community rallied to show their

support with addressing these challenges.

Assisting with bushfire recoveryThe impact of the summer bushfires has been both

devastating and ongoing, with approximately 17

million hectares burnt across the country. These

events have seen communities, governments,

businesses and the third sector work together to

rebuild and better prepare communities for similar

future events.

Standards Australia committed to assisting in making

the rebuild process easier and safer, resulting in

the Commonwealth Government and Standards

Australia jointly funding access for all Australians to

AS 3959:2018, Construction of buildings in bushfire-

prone areas.

The ability to open up access to this standard flowed

from the release of our Distribution and Licensing

Framework, which launched at the end of 2019. The

framework is key to the work we are doing in providing

more options in accessing Australian Standards to

support communities across the country.

Standards Australia and the Commonwealth, through

the Department of Industry, Science, Energy and

Resources, will be jointly funding the access to

AS 3959:2018 until 30 June 2021.

Moving PPE to the frontlinesCOVID-19 has brought challenges to many

organisations. Sadly, the virus has impacted

almost all Australian communities, businesses, and

families. However, like the bushfires, COVID-19 has

seen unprecedented support and action from the

Australian people.

As the virus began to spread, the country was

grappling with shortages in masks, surgical gowns,

and hand sanitiser. Supply chains moved quickly to

respond to the increased demand for products with

Standards Australia staff working with numerous

stakeholders as part of the national response.

Multiple sets of guidance material were prepared and

released to assist in the national effort.

This material, prepared in consultation with the

Australian Technical Infrastructure Alliance (ATIA),

helped to move gloves, masks, surgical gowns, and

other personal protective equipment (PPE) from the

warehouse to the frontline using Australian facilities.

Views of the material on our website indicate it has

been an important resource.

In addition to this material, Standards Australia

expedited key risk management and continuity

standards as well as engaged with the committee

SF-010, Occupational Respiratory Protection, to

identify potential international standards for adoption.

Remote standards developmentCOVID-19 saw all Standards Australia staff

and contributors move to online meetings for

standards development.

This move has seen much success and is a

testament to our adaptable community.

Simon Croft, of committee FP-20, reflected on

a recent remote meeting: “It kept a concise

agenda, was ran and chaired well, and

everyone got a chance to have a say.”

The work from home transition fast tracked several IT initiatives like the rollout of Microsoft Teams, OneDrive, Office 365 MFA and improved security tools.” — Prem Bhawnani, Head of IT

“

A year of significant challenge


Smarter, safer, sustainable citiesMore than just buzz words, smart cities encompass

a huge technological transformation across

regional townships, major cities, and international

borders. The goal of smart cities is to help promote

an efficient and sustainable planet through the

interconnected nature of technology and human life.

In November 2019, Standards Australia adopted

nine sustainable cities and communities standards,

covering areas such as indicators for resilient cities

and guidance on establishing smart city operating

models. The standards will be used to help guide the

implementation of technologies to support smarter,

and more sustainable communities.

The work is far from over, with engagement with

stakeholders continuing as we understand the

standards and guidance needed to help make smart

cities and communities a reality across the country.

Positive battery storageA gap in safety guidance for the battery

storage sector was filled with the publication

of AS/NZS 5139:2019, Electrical installations

– Safety of battery systems for use with power

conversion equipment.

Battery systems offer a level of stability to the

grid as they can provide power when needed.

A first for this technology, the standard provides

guidance on safety and installation requirements

to manufacturers, system integrators, designers

and installers.

It proved to be a project of many complexities

and was made possible through support from

industry, government regulators, consumers and

technical experts.

Renewing energy options

Ready H2 go!In little more than 12 months, Standards Australia’s

hydrogen committee published eight standards to

support hydrogen use and transportation in Australia.

These standards can be used to support the safety

of users with guidance on the storage, transport and

refuelling of hydrogen.

This work will help change the way we power

transport, communities and businesses. The

adoption of international standards not only supports

the safety of users but will go far in facilitating

international trade and enabling Australia to

participate in the global hydrogen economy.

Many governments and communities worldwide

are working towards a more renewable and

sustainable future, with energy a significant

element of this. Standards Australia continues

to be a part of the conversation by providing

support, innovation, and expertise into the

ongoing development and implementation of

sustainable energy options.

Standards in the digital age

Strong and adaptable standards are important

in supporting digital innovation while providing a

level of protection to governments, businesses

and the broader community. Standards

Australia has made some exciting progress

in its development of guidance for more

robust cybersecurity in both the national and

international space.

Working with our neighboursBy partnering with the wider Pacific region in the

development of standards, Australia can better

protect our digital economy and that of our

neighbours.

The Pacific Islands Cyber Security Standards

Cooperation Agenda, published in early 2020,

sets out recommendations on how to strengthen

cybersecurity in the Pacific Islands with the use

of standards. It includes some of our closest

neighbours: Fiji, Papua New Guinea, Solomon

Islands, Tonga and Vanuatu.

The report is an example of the work Standards

Australia is doing to support Australia’s International

Cyber Engagement Strategy and the overall

cybersecurity of our closest neighbours.

Increasing Australia’s cybersecurityIn response to growing concerns around privacy,

Standards Australia, alongside AustCyber and the

NSW Government, has established a Cybersecurity

Taskforce. The taskforce consists of industry

experts from the defence, energy, health, financial

services, and the education sector to support

Australia becoming a more resilient nation in terms of

cybersecurity.

The group has agreed on improving the practice

of cybersecurity across Australian industry through

sector-specific initiatives and technical guidance,

greater cooperation between technologies, and

learning from global examples.

Priorities for artificial intelligenceThe responsible deployment of Artificial Intelligence

(AI) has been given a helping hand with the

publication of Standards Australia’s Artificial

Intelligence Standards Roadmap: Making Australia’s

Voice Heard.

The Roadmap aims to give the Australian market the

best chance at capitalising on this technology. Since

2017, AU$86 billion in focused AI programs and

activities have been announced by fourteen of the

world’s most advanced economies, a clear indication

of growing interest in this space.

The report, which was built on public consultations

and submissions, provides clear and actionable

recommendations that aim to support Australia to

reach its full potential in the adoption and use of

this technology.

Artificial Intelligence Roadmap panel, from left: Aureliee Jacquet Chair, Standards Australia IT-043 Committee; Ed Santow, Australia’s Human Rights Commissioner; Colin Dominish, Australian Digital Leader at GHD Digital; and Katherine Teh, Managing Director FUTUREYE.

16

An international organisation

This year has seen the international standards

world provided with the unique and unforeseen

challenges posed by international borders

closing across the globe. However, thanks to the

flexibility of stakeholders, staff and contributors,

international standardisation and collaboration

has continued to thrive entirely digitally.

With a focus on Australia’s economic efficiency,

trade and international competitiveness,

Standards Australia has been involved in

activities that enhance Australia’s global reach

and relevance.

to build our digital economy. It has set the

groundwork for stronger national standards bodies

in ten countries across South Asia and the Pacific:

Bangladesh, Bhutan, Nepal, Sri Lanka and Fiji,

Papua New Guinea, Samoa, Solomon Islands, Tonga

and Vanuatu.

Work has also continued on the ASEAN-Australian

Digital Trade Standardisation Initiative, which has

brought together ASEAN member states and

stakeholders to discuss digital trade priorities.

Standards in areas like e-commerce for small and

medium-sized enterprises, blockchain and emerging

technologies, and cybersecurity have been on the

agenda throughout the program.

This work encourages cooperation and alignment

in the development of standards. They’re part of

Standard Australia’s integral work outside of our own

borders in creating relationships with countries to

identify opportunities and solve challenges in global

standardisation.

Working hand in handStandards Australia supported the government

on relevant legal standardisation language for the

Singapore Australia Digital Economy Agreement (DEA),

which concluded in March 2020. This contributed

to identifying priority standards for cooperation, to

facilitate existing or potential digital trade.

Engagement and collaborationThis year, we encouraged adoption of international

standards in key markets identified in Australia’s

trade agreements and strategic partnerships.

Throughout the year, Standards Australia led and

influenced strategic priority topics for our country in

a fast-evolving international standards landscape.

We co-ordinated and ensured active participation by

Australia in the international system and focused on

collaboration and engagement in key international

standards bodies such as International Organization

for Standardization (ISO) and International

Electrotechnical Commission (IEC).

Contributing internationallyStandards Australia has a strong history of

collaboration with the International Electrotechnical

Commission (IEC). Last year, we collaborated with

regional partners and national counterparts to

engage on issues and challenges, agree common

objectives, and drive consensus in negotiations.

Australia was elected to participate on IEC’s

Standardization Management Board (SMB) and

the IEC Governance Review Task Force. General

Manager of Operations, Kareen Riley-Takos, was

elected to represent Australia on the SMB, and

we hosted our very first virtual conference to

collaborate with stakeholders and discuss Australia’s

international priorities.

Regional partnerships In its second year of the three-year standards

enabling program, The Indo-Pacific Digital Trade

Standardisation Initiative has continued to work

ISO IEC JTC 1

Participating 262 84 13

Secretariats 22 2 1

Observing 82 42 2

International committee participation

510

FY 2019 –20Taking adoptions to 41% of the total catalogue

Adoptions

63%

It is more efficient to develop international standards than each country developing their own.” —Baoying TongJT-001-01, Smart Cities Standards Reference Group

“


the Standards Australia Webstore and Distribution

and Licensing Policy Framework are indications of

meeting Standards Australia’s core objective.

Product focusIn 2019, we established a product team to gain a

better understanding of our customers.

Through interviewing a wide range of people, the

team has provided insight into their challenges,

motivations and expectations.

This research has fed into a range projects we are

excited to bring to life. As we progress, we will

continue to test our concepts with users to ensure

that we are offering our customers the best product

possible.

Distribution transitionIn the last year, several key elements of our transition

to new modes of distribution have completed with

others ongoing.

Both SAI Global and Techstreet are now operating

on a distribution model managed by Standards

Australia. Direct licensing arrangements, previously

with SAI Global, are now handled in-house.

We are continuing to explore new opportunities,

including discussions with international standards

bodies as potential resellers of our content.

Business transformation

Standards Australia is continually working

on providing better experiences for our

stakeholders, contributors and consumers. As

part of our Technical Governance Review we

have been trialling new initiatives and updating

and integrating our systems to provide an even

greater digital experience.

Connect(ing) contributorsConnect is an all-encompassing online portal for

contributors. It provides committee members and

the public the opportunity to learn about standards

projects, comment on draft standards and engage

with other stakeholders.

It is also a tool for nominating organisations to

stay involved and up to date on the work of their

representatives.

Faster project completionsThe introduction of Technical Writers and Committee

Facilitators has taken some of the strain off large and

complex projects. This Technical Governance Review

initiative will ideally see projects delivered in shorter

time frames.

To aid in some of the complexities of a project, a

Technical Writer was assigned and Professor David

Eager, Chairperson of the relevant committee said,

“The drafting of the three parts of this standard has

been improved immensely by having a dedicated

Technical Writer involved from the get-go.”

There has been similar feedback from other

committees, with Standards Australia pleased to see

Technical Governance Review initiatives improving

the effectiveness of our hard-working committees.

Finding a resolutionCommittee members bring expertise and passion to

standards development projects. Understandably,

with many of them holding differing viewpoints,

having a document that can help resolve any issues

quickly and effectively is important.

Our FY-20 implementation plan saw the development

and use of SG-008, Committee Dispute Avoidance

and Resolution. This document champions efficient

standards development and is an essential addition

to the support available for committees.

AcademyStandards Australia ran many workshops to better

educate stakeholders on standards development

processes and platforms. This year has seen plenty

of engagement and participation from both internal

and external contributors.

Internal External Total

Workshops 88 87 175

Attendees 951 647 1,598

Hours 210 193 403

NEXTgen: 22 participantsThe NEXTgen program brings young industry leaders

and technical experts together and provides them

with an opportunity to gain insights and experience

in the standardisation process.

For the 2019–20 cohort, it was a year like no other,

with the workshops moved completely online mid-

way through the program. Despite the disruption, the

adaptability of the 22 participants saw the program

maintain momentum through to online graduation.

Broadening access to our contentA successful legal battle saw Standards Australia

regain distributing and licensing rights which has

provided significant opportunity for Standards

Australia’s content to become more accessible for

stakeholders, contributors and consumers.

The exciting first step was the announcement of

the new distribution agreement with Techstreet, a

Clarivate Analytics company. This led to the launch

of the Standards Australia Webstore, providing a

new channel for accessing standards and creating a

competitive market.

In addition, Standards Australia released a

Distribution and Licensing Policy Framework.

By talking with individuals from different areas of

Australian life, it gave Standards Australia an in-

depth look into how we can better deliver content.

Standards Australia has a firm core objective: to

develop standards for public benefit. The launch of

20

Graduate program launchesIn February, we launched our graduate program

with four graduates joining us from different fields of

study to learn more about Standards Australia and

standards development.

Over the year, George Sfinas, Samantha Smith,

Josephine Gasparre and Abbey Dorian (pictured),

have been embedded across four divisions of the

business (stakeholder engagement, international

stakeholder engagement, product and standards

development).

The program provides an avenue to reach the next

generation of technical professionals and employees,

but also for Standards Australia to learn more about

ourselves as an employer.

According to our graduates, the program has

offered a unique insight into the complexities of the

standards development process, with each business

unit offering new opportunities and experiences to

develop different skills.

Josephine Gasparre: “The graduate role gives me the

opportunity to learn, develop and choose my path …

I am gaining valuable experience and insight into key

aspects of standardisation.”

Barbara Geens

Involved in standards since 2015, protecting consumers is her driving goal as both a Product Safety Manager and as chairperson of the industry working group on button battery safety as well as other committee roles.

David Eager

It would be impossible to put Professor David Eager’s success down to one committee or area of interest. Since 1997, David has been dedicated to standards development across many areas related to playground and recreational equipment safety.

Nigel Wilmot

Dedicated to renewable energy device standards for close to 20 years, Nigel’s contribution has been pivotal in the development of over eight published standards, playing a leading role, as Chair, in the development of five of those standards.

Mike Wood

Among many accom-plishments in standards, Mike is chairperson of the International Electro-technical Commission’s (IEC) TC 106, which has global responsibility for EME (Electromag-netic Energy) testing standards for mobile phones, devices, wire-less networks and radio communication systems.

Rachelle Doyle

New to the standards world as the chair of ME-093, Hydrogen Technologies, the committee has worked tirelessly with government and industry to ensure Australia has a voice in this emerging energy.

Our people

Our graduate program is an avenue to reach the next generation of technical professionals and employees.”—Emma Lowes, Head of HR L&D

“

Women · Men 104 · 70

Manager role appointments 11 · 5

Non-manager role appointments 35 · 24

Managers 16 · 16

Employees

Standards AwardsStandards Awards are presented to those who have

made significant contributions to standardisation

and demonstrated outstanding service in enabling

Standards Australia to attain its objectives.

Innovation Award

BD-014-02 Technical Specification for Labelling of ACP products

The subcommittee BD-014-02, Labelling of Aluminium Composite Panel (ACP) Products, redefined the standards development process, challenging the perception that producing quality content is lengthy and laborious.

Outstanding Committee Award

ME-005 Cranes

Having shown immense commitment and resilience this year, responding quickly to several safety concerns voiced within the sector, the committee embraced international participation and had several adopted standards out for public comment in 2020.

The committees I work on have and continue to save Australian lives.” — David Eager

“

Individual winners

Committees of note

This year has been one of the most testing for our

staff. Despite the challenges presented by 2020,

they have continued to go above and beyond

to bring critical guidance to support Australian

communities.

174

W.R Hebblewhite MedalMeritorious Contribution Award (National)

Meritorious Contribution Award (National)

Meritorious Contribution Award (International) Emerging Leader Award


Financial overview

As an overview of the statutory financial report we set out our summary of the financial performance for the year and the issues involved with the investment portfolio.

Market performance for the year saw negative returns in all areas, except Overseas Equities:

• Australian equities markets (S&P/ASX 300) returned -1.7% over the financial year.

• Overseas equities returned 1.9% on a hedged basis, and 5.8% unhedged.

• Within the Australian property sector, the listed Australian Real Estate Investment Trusts (AREITs) returned -20.7%. In contrast, Australian unlisted property returned -2.7% over the financial year.

• Australian cash rate reduced to 0.25% during the year.

• The AUD contracted -1.9% against the USD during the year.

Investment PortfolioThe Board’s policy is that the portfolio is actively managed by specialist investment managers in each asset class. With the support of JANA Investments Advisers, the Finance Risk and Audit Committee closely monitors investment performance and market conditions to ensure the portfolio is positioned ap-propriately for the prevailing economic environment.

The Board approved, in August 2019, a change in both the long and medium term strategic asset allocation. The change occurred in order to achieve the investment objective of CPI +1% + 3%.

The portfolio is currently invested with 16 actively

managed wholesale investment funds, plus a portion of the portfolio held directly in bank term deposits, in total $292m at 30 June 2020.

At 30 June 2020 the investment portfolio is structured as follows:

Sector $M %

Australian equities 69 24Overseas equities 49 17Property 54 18Infrastructure 30 10Alternatives—growth 15 5Alternatives—defensive 43 15Cash & term deposits 32 11 292 100%

Portfolio ValuationThe below chart depicts the actual value of the in-vestment portfolio compared to the target value. The target value is the value of the initial funds at 30 June 2004 ($161.1 million) accumulated by CPI +1% p.a.

$161.1M

June 2004 June 2020

(Target Value)

Actual Total Portfolio – $292.26M

$269.46M

Financial ResultThe Statement of Profit or Loss and Other Comprehensive Income on page 32 of the Annual Review is stated below to differentiate between operations and investment activities: 2020 2019

$’000 $’000

Operations

Revenues 40,309 18,314

Expenses (33,279) (29,658)

Operations Surplus/(Deficit) 7,030 (11,344)

Investments

Managed Funds distributions and interest 14,657 18,163

Net Profit (Reported P&L) 21,687 6,819

Other Non-Operating Income

Other Income 27 10,024

Net Gain/Loss on Investments designated as fair value through profit and loss (25,841) 2,099

Total Comprehensive Income (4,127) 18,942

Financial StrategyAs an independent, autonomous, self-sustaining or-ganisation, Standards Australia needs to generate in-come to deliver on its company objectives and enable it to deliver unique value for the benefit of Australia.

Standards Australia’s current financial viability is dependent on returns from its investment portfolio and from royalties from the sale of standards publi-cations. Standards Australia’s strategy is to diversify the sources of revenue to enable it to continue deliv-ering solutions that empower communities.

The principles of the current financial model are:

• To ensure that Standards Australia is financially sustainable in the short, medium and long-term, so that we can fulfil our objectives as Australia’s peak standards body, in perpetuity.

• To ensure its role in the economy is supported by solid financial management and creating new sources of revenue, enabling Standards Australia to generate greater value for the community.

• To acknowledge in our business planning that investment returns will fluctuate from year to year and therefore short-term operating cost levels and performance targets should align with average medium and long-term investment return expectations.

• To maximise long-term investment returns through professional active management, and by optimising the balance between risk and return.

• To manage the investment portfolio using an appropriate policy of annual investment income retention.

The strategy is achieved through a measured approach to sustainable annual operating budgets, and then ensuring achievement of the budget.

The Board is committed to ensuring that the resources available are highly focused on achieving excellence in our core activity of developing internationally aligned Australian Standards in the national interest.

Revenue from RoyaltiesRoyalties are received from the sale of standards publications from its distribution partners.

Investment ObjectiveThe objective is to grow the investment corpus in real terms over a seven year period, after providing for a minimum return of (CPI +1%) + 3% per annum (after fees, and measured over the seven year period), with moderate volatility of returns.

The CPI plus 1% component of the investment return is reinvested back into the portfolio to ensure that it maintains its real value. This means that future returns are able to meet inflated costs in the future.

The 3% component of the investment return is the approximate amount of investment earning that can be used to fund annual operating expenses.

The Investment YearThe financial year began reasonably well. The first part of the year saw slowing global economic growth and continuing low inflation across regions, with accommodative monetary policy from central banks supporting bond and equity markets, which were generally higher. However, the period was also marked by increased volatility, punctuated by US-China trade tensions. From mid-February, atten-tion shifted to the rapid spread of COVID-19 globally. Governments around the world implemented varying degrees of general public lockdowns to contain the outbreak, leading to a sharp contraction in economic activity and record falls in global equity markets.

In Australia, in line with global monetary policy re-sponses, the Reserve Bank of Australia (RBA) reduced the cash rate twice in March, to end the financial year at a new record low of 0.25%. The Federal Govern-ment announced three separate stimulus packages totalling more than $200bn, which were coupled with further State-driven initiatives. Economic data weak-ened, as the unemployment rate reached 7.1% by the end of June 2020, and GDP contracted by 0.3% in the March quarter with the Treasurer declaring Austra-lia to be in a technical recession based on an expect-ed negative June 2020 quarterly GDP result.


Principal ActivitiesThe principal activities of Standards Australia Limited

(Standards Australia) have been fulfilling the role as

Australia’s peak standards body; in the development

of Australian Standards, and investment. There has

been no significant change in the nature of these

activities during the past year.

DirectorsThe directors in office during the year and up to the

date of this report are set out beginning page 26,

together with their qualifications, experience and

special responsibilities.

Company SecretaryThe company secretary at the time of reporting is

Ariella Mitchell.

Operating ResultsThe profit of Standards Australia Limited for the year

was a deficit $4,127,000 (2019 profit $18,942,000).

Review of OperationsThe principal activities of Standards Australia Limited

have been fulfilling the role as Australia’s peak

standards body and the development of Australian

Standards.

The company has a diversified investment portfolio

which generates earnings that contribute to meeting

the operational costs of standards development.

A global health emergency was announced by The

World Health Organisation (WHO) on 31 January

2020 as a new strain of coronavirus (COVID-19)

had spread globally with risks to the international

community. Subsequently, on 11 March 2020, WHO

classified the COVID-19 outbreak as a pandemic due

to its rapid increase in global exposure. Standards

Australia implemented strategies aimed at mitigating

likely disruptions, including prohibiting all company-

related travel; temporarily closing its offices with

all employees required to work remotely; regularly

monitoring and reviewing the company’s investment

corpus, cashflow position and royalty revenue, and

engagement with distributors.

While the economic consequences of the COVID-19

pandemic may have been challenging both

domestically and globally, the impact on Standards

Australia to date has been minimal with its operating

results remaining consistent with expectations.

However, the impact of COVID-19 on world equity

markets has significantly impacted the valuation of

its investment corpus. Within the financial year, the

performance of the total portfolio was negative 3.1%

compared against a benchmark of negative 0.2%.

On a positive note, the performance of the total

portfolio since inception was 8.5%, ahead of the

benchmark of 7.1%. Standards Australia continues

to remain a going concern.

While the implications of the COVID-19 pandemic

remain uncertain, Standards Australia continues

to monitor its operations and the strategies

detailed above.

Significant Changes in the State of AffairsNo significant changes in the company’s state of

affairs occurred during the financial year.

After Balance Date EventsNo matters or circumstances have arisen since the

end of the financial year which significantly affected,

or may significantly affect, the operations of the

company, the results of those operations, or the state

of affairs of the company in future financial years.

Likely developments in the operations of the

company, and the expected results of those

operations in future financial years, have not

been included in this report as the inclusion of

such information is likely to result in unreasonable

prejudice to the company.

Environmental IssuesThe company’s operations are not regulated by any

significant environmental regulation under a law of

the Commonwealth or of a state or territory.

Proceedings of Behalf of CompanyNo person has applied for leave of Court to bring

proceedings on behalf of the company or intervene in

any proceedings to which the company is a party for

the purpose of taking responsibility on behalf of the

company for all or any part of those proceedings.

The company was not a party to any such

proceedings during the year.

Company DetailsStandards Australia Limited is a company limited by

guarantee, incorporated and domiciled in Australia.

Its registered office and principal place of business is

Level 10, 20 Bridge St, Sydney, New South Wales.

Members’ Rights and ResponsibilitiesIn accordance with the company’s constitution the

liability of members in the event of being wound

up will not exceed $100 per member. In the event

of winding up, any surplus net assets can only be

distributed to an organisation with similar objects,

tax exempt status and a constitutional prohibition

on the payment of income or property to members.

The constitution precludes the payment of any

portion of the company’s income or property by

way of dividend, bonus or otherwise by way of

profit to any member.

Indemnification and insurance of directors and officersThe company indemnifies, each person who is or

has been an officer of the company in accordance

with the provisions of Articles 144 to 147 of the

Constitution of Standards Australia.

RoundingThe amounts contained in the financial report have

been rounded to the nearest $1,000 (where rounding

is applicable) where noted ($000) under the option

available to the company under ASIC Corporations

(Rounding in Financial/Directors’ Reports) Instrument

2016/191. The company is an entity to which this

legislative instrument applies.

Directors’ report

The directors present their report on Standards Australia Limited for the year ended 30 June 2020.


1

4

7

2

5

8

3

6

9

Richard BrooksB Ec., FCPA, FAICD 1

CURRENT POSITIONS: Managing Director, Tyne Solutions Pty Ltd, a provider of business and association management services

FORMER POSITIONS: Chairman, Council of Small Business Organisations of Australia; Executive Director, Timber Merchants Association, Victoria; Co-Chairman, Timber Industry Superannuation Scheme; Member, Mt. Buller and Mt. Stirling Alpine Resorts Management Board

SPECIAL RESPONSIBILITIES: Board Chairman; Member Finance, Risk and Audit Committee; Member Remuneration and Nominations Committee; Member Board Corporate Governance Review Task Group

Michelle FitzgeraldB Com. (Hons), GAICD 2

CURRENT POSITIONS: Chief Digital Officer and Director Technology and Digital Information, City of Melbourne; Director, Melbourne Digital Enterprises Pty Ltd

FORMER POSITIONS: Partner, Customer & Digital Consulting, PwC Australia; senior consulting roles with Accenture UK and Andersen Consulting Australia; Member, Melbourne Sub-Committee Women in Banking and Finance; Director, Australia-China Business Council (Victoria Division); Director, Nutrition Australia (Victoria)

SPECIAL RESPONSIBILITIES: Chair Finance, Risk and Audit Committee

Tracey GramlickMAICD, GradDipMechEng, MBA (TechMgt) 3

CURRENT POSITIONS: Senior Analyst, CSIRO – Certification and Verification, Infrastructure Technologies; Board Advisory Committee Co-Chair, Marriott Vacation Club Owners Phuket, Thailand

FORMER POSITIONS: Member and Councillor, Standards Australia; Director, Secretary and CEO, Australian Window Association; Director and Chairman, Australian Fenestration Rating Council; Director and Secretary, Building Products Innovation Council; Member, Australian Sustainable Built Environment Council; Member, Australian Construction Industry Forum; Director, Furniture, Cabinetry and Joinery Alliance; Technical Director, Australian Window Association; Industrial Products Sector Manager, Alcan Australia

SPECIAL RESPONSIBILITIES: Deputy Chair; Chair Standards Development and Accreditation Committee; Member Remuneration and Nominations Committee; Member Board Corporate Governance Review Task Group

Marlene Kanga AMBTech (Chem Engg), MSc (Lon), PhD (Macq), HonFIEAust, HonFIChemE, FAICD, FTSE 4

Appointed 22 November 2019

CURRENT POSITIONS: Non Executive Director Sydney Water Corporation; Non Executive Director Airservices Australia; Non Executive Director Business Events Sydney; Board Member, NSW Smart Sensor Network; Board Member, World Federation of Engineering Organisations; Director, iOmniscient Pty. Ltd.

FORMER POSITIONS: Board Member Innovation Science Australia; Chair R&D Incentives Committee, Department of Industry Innovation and Science; Chair and Board Member Engineers Australia; Chair, World Federation of Engineering Organisations; Non Executive Director Hearing Co-operative Research Centre; Board Member Asialink

SPECIAL RESPONSIBILITIES: Member Finance, Risk and Audit Committee

Nicholas KoukoulasMBA, GAICD 5

FORMER POSITIONS: Member and Councillor, Standards Australia; Chief Executive and Company Secretary, Austroads Ltd and Transport Certification Australia Ltd; Councillor, PIARC (World Road Association), Managing Director, BSI Group ANZ Pty Ltd; General Manager, Wiltrading Pty Ltd

SPECIAL RESPONSIBILITIES: Chair Board Corporate Governance Review Task Group; Member Finance, Risk and Audit Committee

Megan MottoBA/BEd, MA (Comms Mgt), FGIA, GFAICD 6

CURRENT POSITIONS: CEO Governance Institute of Australia; Member and Chair NSW State Advisory Council for the Committee for Economic Development of Australia; Director of Committee for Economic Development of Australia; Director Next Gen & Co.; Councillor of the Australian Chamber of Commerce and Industry

FORMER POSITIONS: Member and Councillor Standards Australia; CEO, Consult Australia; Councillor, Australian Chamber of Commerce and Industry; Director and Councillor, NSW Business Chamber; Member, Commonwealth Procurement Consultation Committee; Treasurer and Councillor, Australian Sustainable Built Environment Council

SPECIAL RESPONSIBILITIES: Chair Remuneration and Nominations Committee; Member Board Corporate Governance Review Task Group

Ian OppermannMBA (Lon), PhD (Syd), FIEEE, FIEAust, FTSE, FACS, GAICD 7

Appointed 22 November 2019

CURRENT POSITIONS: NSW Chief Data Scientist; President of the Australian Computer Society (ACS); Member of the Technical Advisory Board of the Australian Institute of Robotic Orthopaedics; Member, Board of Remote and Regional Medical Services (RaRMS); Chair, Technical Advisory Board of Zetaris; Industry Professor at UTS; Member, Technical Advisory Board of IP Australia; Chair, Technical Advisory Board of ARDC (Australian Research Data Commons); Member, Technical Advisory Board of Sentient Hubs

FORMER POSITIONS: CEO, NSW Data Analytics Centre (DAC); CEO, Rozetta Technology; Director (Chief), CSIRO ICT Centre; Global Head of Sales Partnering (network software), Nokia Siemens Networks; Director, Radio Access Performance at Nokia

SPECIAL RESPONSIBILITIES: Member Standards Development and Accreditation Committee

David Singleton AMBSc, MEngSc, FTSE, HonFIEAust, FICE, FAICD, MPIA 8

Retired 22 November 2019

CURRENT POSITIONS: Member, Council of Swinburne University of Technology and Member of Resources Committee; Director, Australian Volunteers International

FORMER POSITIONS: Group Board Member and Director, Arup Group; CEO and Chairman, Arup Australasia; Chair, Standards Australia Buildings Standards Sector Board; Chairman Engineers Australia’s College of Leadership & Management; Director, Australian Construction Industry Forum; Director, Cooperative Research Centre for Construction Innovation; President and Chair, Association of Consulting Engineers Australia; Director, Association of Consulting Engineers Australia; Chair, National Engineering Registration Board; Chairman, Infrastructure Sustainability Council of Australia; Chair, Smart Cities Research Institute, Swinburne University of Technology

SPECIAL RESPONSIBILITIES: Chair Standards Development and Accreditation Committee; Member Finance, Risk and Audit Committee

James TinslayBScEng, MAICD 9

Retired 22 November 2019

CURRENT POSITIONS: Director JCT Advisory Pty Ltd; Executive Director Business Group Australia; Director ECA Training Pty Ltd; Director Wine & Food Society of NSW

FORMER POSITIONS: Member and Councillor Standards Australia; Chief Executive Officer National Electrical and Communications Association; Director of Australian Cabling Registration Services Pty Ltd; Councillor Australian Chamber of Commerce and Industry; Director Australian Construction Industry Forum Limited; Chair NSW Electrotechnology Industry Training Advisory Board Pty Ltd; Group Manager Electrotechnology, Standards Australia

SPECIAL RESPONSIBILITIES: Chair Remuneration and

Nominations Committee

Information on Current Directors


Directors Meetings

Eligible Actual R Brooks 6 6 M Fitzgerald 6 6 T Gramlick 6 6 M Kanga AM 2 1 N Koukoulas 6 6 M Motto 6 6 I Oppermann 2 2 D Singleton AM 4 3 J Tinslay 4 3

Finance, Risk & Audit Committee

Eligible Actual R Brooks 5 5 M Fitzgerald 5 5 M Kanga AM 2 1 N Koukoulas 5 5 D Singleton AM 3 3

Remuneration & Nominations Committee

Eligible Actual R Brooks 4 4 T Gramlick 4 4 M Motto 4 4 J Tinslay 2 2

Standards Development & Accreditation Committee

Eligible Actual T Gramlick 4 4 I Oppermann 2 2 D Singleton AM 2 2

The Chairman and other Board Members also attend

Committee Meetings they are not Members of, as

Observers or by Invitation.

Current Board ProfileThe Board considers that each of the non-executive

directors has the following attributes:

• Time to undertake the responsibilities of the

role;

• Unquestionable honesty and integrity;

• A willingness to understand and commit to the

highest standards of governance;

• An ability to apply strategic thought to relevant

matters;

• A preparedness to question, challenge and

critique;

• An understanding or preparedness to develop

a thorough understanding of the issues

involved in standardisation in Australia and

internationally.

Finance, Risk and Audit CommitteeThe committee’s primary objectives are to assist the

Board in fulfilling its responsibilities relating to:

• investment strategy;

• risk management;

• compliance with legal and contractual

obligations;

• accounting, reporting and internal controls; and

• audit.

Remuneration and Nominations CommitteeThe committee’s primary objectives are to assist the

Board in fulfilling its responsibilities relating to:

• remuneration policy and strategy;

• CEO and director remuneration;

• succession planning and nomination of new

directors and other officers;

• applications for new Standards Australia

membership;

• nomination of honorary councillors; and

• Board and Board committee performance

Standards Development and Accreditation CommitteeThe committee’s primary objectives are:

• to assist the Board in fulfilling its responsibilities

as Australia’s peak national standards body and

in the development of Australian Standards,

which include joint Australian / New Zealand

Standards, and related documents;

• perform the duties and responsibilities in

accordance with the role and powers delegated

by the Board in relation to the accreditation of

Standards Development Organisations (SDOs)

to develop and maintain Australian Standards;

and

• review the recommendations from management

about priorities for the development of

Australian Standards and other documents in

the public interest.

Auditor’s Independence DeclarationA copy of the auditor’s independence declaration is

included on page 29.

AuditorBDO continues in office in accordance with section

327 of the Corporations Act 2001. The BDO entity

performing the audit of the Group has transitioned

from BDO East Coast Partnership to BDO Audit

Pty Limited.

Signed in accordance with a resolution of the

directors.

W R Brooks

Chairman

M Fitzgerald

Director, Chair Finance, Risk and Audit Committee

Sydney, 7 October 2020

Meetings of Directors


Level 11, 1 Margaret St Sydney NSW 2000 Australia

Tel: +61 2 9251 4100 Fax: +61 2 9240 9821 www.bdo.com.au

BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.

DECLARATION OF INDEPENDENCE BY GILLIAN SHEA TO THE DIRECTORS OF STANDARDS AUSTRALIA

As lead auditor of Standards Australia Limited for the year ended 30 June 2020, I declare that, to the best of my knowledge and belief, there have been:

1. No contraventions of the auditor independence requirements of the Australian professional ethical pronouncements in relation to the audit; and

2. No contraventions of any applicable code of professional conduct in relation to the audit.

Gillian Shea Director

BDO Audit Pty Ltd


Auditor’s independence declaration

Directors’ declarationIn the directors’ opinion:

a) The financial statements as at 30 June 2020 and notes set out on page 36 to page 43 are in

accordance with the Australian Charities and Not-for-profits Commission Act 2012, including:

i) complying with Accounting Standards, Corporations Act 2001, the Australian Charities and Not-

for-profits Commission Regulation 2013 (ACNC Regulation 2013), and other professional reporting

requirements; and

ii) giving a true and fair view of the financial position and performance of the company as at 30 June 2020,

as represented by the results of the operations and cash flows, for the year ended on that date; and

b) there are reasonable grounds to believe that the company will be able to pay its debts as and when they

become due and payable.

This declaration is made in accordance with a resolution of the directors.

W R Brooks

Chairman

M Fitzgerald

Director, Chair Finance, Risk and Audit Committee



Statement of profit or loss and other comprehensive incomeFor the year ended 30 June 2020

2020 2019

Notes $’000 $’000

Revenue 2 54,966 36,477

Expenses

Employee benefits expense 19,128 14,463

Finance costs 396 6

Depreciation and amortisation expense 3 3,156 1,310

Occupancy expense 695 2,052

Travel expense 1,358 2,300

Legal expense 439 1,830

Technology expense 2,258 1,500

Royalty expense 2,036 2,060

Consultancy expense 626 1,053

Membership expense 600 585

Other expenses 2,587 2,499

33,279 29,658

Net Income from Operations 21,687 6,819

Other Income 2 27 10,024

Net Gain/(Loss) on Investments designated as fair value through profit or loss (25,841) 2,099

Profit before income tax expense (4,127) 18,942

Income tax expense 1(g) - -

Profit for the year after income tax expense (4,127) 18,942

Other comprehensive (loss)/income for the year - -

Total comprehensive income for the year (4,127) 18,942

The Statement of Profit or Loss is to be read in conjunction with the notes to the financial statements.

Statement of financial positionAs at 30 June 2020

2020 2019

Notes $’000 $’000

Current Assets

Cash and cash equivalents 4 65 329

Trade and other receivables 5(a) 3,816 16,302

Inventory 6 122 -

Other current assets – Prepayments and Other 7 2,052 1,038

Other current assets – Accrued Income 7 11,748 15,346

Financial assets - investments 8(a) 54,514 28,016

Total current assets 72,317 61,031

Non-current assets

Trade and other receivables 5(b) 2,333 4,667

Financial assets - investments 8(b) 253,899 268,873

Plant and equipment 9(i) 5,172 5,413

Right-of-use assets 9(ii) 5,890 -

Intangible assets 9(iii) 3,568 889

Total non-current assets 270,862 279,842

Total assets 343,179 340,873

Current liabilities

Trade and other payables 10 3,484 3,780

Lease liabilities 11(a) 1,419 -

Provisions 12(a) 1,410 1,079

Other current liabilities 13(a) 13,729 13,563

Total current liabilities 20,042 18,422

Non-current liabilities

Lease liabilities 11(b) 5,552 -

Provisions 12(b) 598 574

Other non-current liabilities 13(b) - 763

Total non-current liabilities 6,150 1,337

Total liabilities 26,192 19,759

NET ASSETS 316,987 321,114

Equity

Reserves 56,119 55,755

Retained surplus 260,868 265,359

TOTAL EQUITY 316,987 321,114

The Statement of Financial Position is to be read in conjunction with the notes to the financial statements.


Statement of changes in equityFor the year ended 30 June 2020

Investment Revaluation

Reserve

Retained Surplus

Total Equity

$’000 $’000 $’000

Balance at 1 July 2018 55,755 246,417 302,172

Profit after income tax expense for the year - 18,942 18,942

Total comprehensive income for the year - 18,942 18,942

Transfer of realised (gains)/losses to retained surplus - - -

Balance at 30 June 2019 55,755 265,359 321,114

Investment Revaluation

Reserve

Retained Surplus

Total Equity

$’000 $’000 $’000

Balance at 1 July 2019 55,755 265,359 321,114

Profit after income tax expense for the year - (4,127) (4,127)

Total comprehensive income for the year - (4,127) (4,127)

Transfer of realised losses to retained surplus 364 (364) -

Balance at 30 June 2020 56,119 260,868 316,987

Statement of cash flowsFor the year ended 30 June 2020

2020 2019

Notes $’000 $’000

Cash flows from operating activities

Receipts from operations 56,766 14,629

Payments to suppliers and employees (30,628) (26,480)

Net cash inflow/(outflow) from operating activities 26,138 (11,851)

Cash flows from investing activities

Payments for plant and equipment (1,584) (1,433)

Payments for intangible assets (2,596) -

Payments for acquisition of investments (26,000) (103)

Interest and distributions received 5,440 13,565

Net cash inflow/(outflow) from investing activities (24,740) 12,029

Cash flows from financing activities

Payments of lease liabilities (1,662) -

Net cash outflow from financing activities (1,662) -

Net (decrease)/increase in cash and cash equivalents held (264) 178

Cash and cash equivalents at the beginning of the financial year 329 151

Cash and cash equivalents at the end of the financial year 4 65 329

The Statement of Cash Flows is to be read in conjunction with the notes to the financial statements.


Notes to the financial statements

1. Statement of Significant Accounting Policiesa) Basis of preparation

The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards - Reduced Disclosure Requirements of the Australian Accounting Standards Board (AASB), Corporations Act 2001 and the Australian Charities and Not-for-profit Commission 2012, as appropriate for not-for-profit organisations.

The financial report covers Standards Australia Limited (the company) as an individual entity and is presented in Australian currency.

The financial report was authorised for issue by the directors on 7 October 2020. The directors have the power to amend and reissue the financial report.

Reporting Basis and ConventionsThis financial report has been prepared on an accruals basis under the historical cost convention, as modified by the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value basis of accounting has been applied.

b) Financial assets

Classification and measurementThe company classifies its financial assets in the following categories: “investments at fair value through profit or loss” and “financial assets at amortised cost”. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of the financial assets at initial recognition.

i) Investments at fair value through profit or loss These instruments are initially recognised at fair value plus transaction costs. Subsequent to initial recognition, they are measured at fair value and changes therein are recognised in profit or loss.

ii) Financial assets at amortised cost Financial assets at amortised costs are recognised initially at fair value and subsequently measured at amortised costs using the effective interest rate method, less provision for impairment.

c) Plant and equipment

All plant and equipment are stated at historical cost less depreciation and impairment. Depreciation is calculated using the straight line method over the plant and equipment’s expected economic life. Depreciation rates are based on the following useful lives:

Plant, equipment and furniture 5 yearsComputing equipment 4 yearsLeasehold improvements over term of lease

The residual values, useful lives and depreciation method are reviewed, and adjusted if appropriate, at each reporting date.

Grant revenueGrants from the government and other organisations are recognised at their fair value when grant money has been received and the company comply with all performance obligations and conditions attached to the grant.

Externally funded projectsIncome from externally funded standards development projects is recognised based on contractually agreed milestones which reflect the company’s performance obligations.

j) Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the balance sheet are shown inclusive of GST.

Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of invest-ing activities, which is disclosed as operating cash flows.

k) Cash and cash equivalents

Cash and cash equivalents includes cash on hand and the operating bank account. Cash term deposits held with financial institutions are classified under “other financial assets” as they form part of the company’s investment portfolio.

l) Receivables

Receivables are carried at invoice amount including GST less an estimate for doubtful debts where collection of the full amount is no longer probable. Bad debts are written off when identified.

m) Trade and other payables

These amounts represent liabilities for goods and services provided to the company prior to the end of the financial year and which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.

n) Provisions

Provisions are recognised when the company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount has been reliably estimated.

Provisions are not recognised for future operating losses.

Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the balance sheet date.

o) Leases

Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, were previously charged as expenses in the periods in which they are incurred.

Lease incentives received under operating property leases were previously recognised as a liability and amortised on a straight-line basis over the life of the lease term.

d) Impairment of plant and equipment

The carrying values of all plant and equipment are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. If such an indication exists and where the carrying value exceeds the recoverable amount, the asset is written down to the recoverable amount. The recoverable amount is the greater of fair value less costs of disposal and value-in-use.

e) Intangible assets

Intangible assets include developed software and other capitalised costs associated with the digital transformation project being undertaken by the company.

Intangible assets are accounted for using the cost model, whereby capitalised costs are amortised on a straight-line basis over their estimated useful lives over a three year period. The residual balances of the intangible assets are reviewed each reporting date.

f) Employee benefits

Provision is made for the company’s liability for employee benefits arising from services rendered by employees to balance date. Employee benefits expected to be wholly settled within 12 months of the reporting date, together with benefits arising from wages and salaries, are recognised as current liabilities and are measured at the amounts expected to be paid when the liability is settled plus related on costs. Other employee benefits not expected to be settled within 12 months of the reporting date are recognised in non-current liabilities and are measured at the present value of the estimated future cash outflows to be made for those benefits.

Contributions are made by the company to employee superannuation funds and are charged as expenses when incurred.

g) Income tax

The company is exempt from income tax under section 50-52 subdivision 50-B of the Income Tax Assessment Act 1997.

h) Rounding of amounts

The company is a kind referred to in Class Order 98/0100 issued by the Australian Securities and Investments Commission relating to “rounding off” of amounts in the financial report. Amounts in the financial report have been rounded off in accordance with the Class Order to the nearest thousand dollars, or in certain cases to the nearest dollar.

i) Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable when control of the goods or services has passed. The company early adopted the requirements of AASB 15: Revenue from Contracts with Customers, in its revenue recognition policy. There was minimal impact on transition.

Royalty revenueRevenue from royalties are recognised as income when received or for subscription sales, royalty revenue is recognised over the term of the subscription.

License revenueRevenue from licenses are recognised over the term of the license.

Change in accounting policyAASB 16 Leases was adopted from 1 July 2019 using the modified retrospective method which had no impact to Retained Earnings and the comparatives have not been restated. The company elected to apply the practical expedient of not recognising right of use and lease liabilities for short-term/low value assets. Lease payments associated with short-term/low value assets and recognised as an expense during the year totaled $2,498.

On adoption of AASB 16, lease liabilities were recognised in relation to the lease which had previously been classified an ‘operating lease’ under the principles of AASB 117 Leases. The liability was measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate as of 1 July 2019. The borrowing rate applied to lease liabilities on 1 July 2019 was 5%. The right of use asset totaled $7,303,000 which is amortised on a straight-line basis over its useful life, deemed to be the non-cancellable period of the lease (62 months); the balance at 30 June 2020 is $5,890,000. The lease liabilities has a balance of $6,971,000 (balance on transition of $7,303.000). For the year, the payments and expenses associated with leases $1,661,921 were allocated to financing costs $383,746 and the reduction of the lease liability of $1,278,175 as required by the new standard. In addition, the right of use asset relating to the leases were depreciated during the year by $1,413,000. The net effect was an increase in the loss for the year of $134,825.

Right of Use Asset and Lease Liability Reconciliation $’000

Commitments for Expenditure - Non-cancellable operating lease expense commitments as stated at 30 June 2019 10,369

Less lease incentive receivable each month to end of lease (946)

Less lease incentive stated on balance sheet at 30 June 2019 (946)

Less Interest expense chargeable over life of lease (1,174)

Opening balance of Right of Use Asset and Lease Liability as at 1 July 2019 7,303

The lease term represents the non-cancellable period of the lease and includes periods covered by an option to extend if the company is reasonably certain to exercise that option. Lease terms shall only be revised if there is a change in the non-cancellable period or there is a reassessment upon a significant event or change in circumstance that is both within the control of the lessee and affects whether or not the lessee is reasonably certain to exercise an option.

p) Inventory

Inventories comprises of goods for resale, these are valued at the lower of cost and net realisable values. Net realisable value is the estimated selling price in the ordinary course of business, less any applicable selling expenses.


q) New accounting standards and interpretations

Australian Accounting Standards AASB 16 Leases was adopted within the annual reporting period ending 30 June 2020, referenced in note 1 (o).

Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet effective have not been adopted for the annual reporting period ending 30 June 2020.

r) Critical accounting estimates and judgments

The company evaluates estimates and judgments incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the company.

i) Restoration of leased property The company is required to restore the leased premises of its office space to its original condition at the end of the lease term. A provision has been recognised for the present value of the estimated expenditure required to remove any leasehold improvements. These costs have been capitalised as part of the leasehold improvements and are amortised over the remaining term of the lease. The company’s assumptions in determining the restoration of leased property are set out in note 12.

ii) Estimation of useful life of assets The company’s assumptions about the useful life of assets are set out in item (c) of this note.

iii) Long service leave provision The company’s assumptions in determining the provision for long service leave are set out in item (f) of this note.

2020 2019

$’000 $’000

2. RevenueRevenue from operating activities

Royalties 35,617 14,721

Grant received 2,686 2,628

Externally funded project revenue 1,470 392

Recoveries and other income 536 573

40,309 18,314

Income from investing activities

Investment distributions 13,998 17,513

Interest income 659 650

14,657 18,163

Total revenue 54,966 36,477

Other income

Other income includes proceeds from settlement of insurance claim

3. ExpensesExpenses from ordinary activities before income tax expense has been arrived at after charging/(crediting) the following:

Depreciation of plant and equipment 442 297

Amortisation of intangible assets 640 371

Amortisation of right of use assets 1,413 -

Depreciation of leasehold improvements 661 642

3,156 1,310

Rental expense relating to operating leases - 1,918

2020 2019

Notes $’000 $’000

4. Cash and cash equivalentsCash at bank and on hand 65 329

65 329

5. Trade and other receivables(a) Current

Trade debtors 1,483 13,969

Other receivables 2,333 2,333

Less: Allowance for expected credit losses - -

3,816 16,302

At 30 June, there was no significant concentration of past due debts.

Fair value and credit risk

Due to the short term nature of the receivables, the carrying amount is assumed to approximate their fair value

(b) Non-current

Other receivables 2,333 4,667

2,333 4,667

6. InventoriesInventories 122 -

122 -

7. Other assetsCurrent

Prepayments 2,052 1,038

Accrued royalty income 3,947 5,407

Accrued distribution income 7,801 9,939

13,800 16,384

8. Investments Financial assets – investments:

At fair value

(a) Current

Investments in term deposits and other liquid assets 53,561 26,133

Franking credits receivable 953 1,883

54,514 28,016

(b) Non-current

Investments in managed funds, designated as fair value through profit or loss

14(a) 253,899 268,873

253,899 268,873


2020 2019

$’000 $’000

9(i). Plant and equipment(a) Leasehold improvements

Leasehold improvements – at cost 7,340 7,034

Less: Accumulated depreciation (4,036) (3,375)

Net book amount 3,304 3,659

Movements in leasehold improvements during the financial year

Opening net book amount 3,659 4,196

Additions/(disposals) 306 105

Depreciation expense (661) (642)

Closing net book amount 3,304 3,659

(b) Plant and equipment

Plant and equipment – at cost 4,036 3,809

Less: Accumulated depreciation (2,168) (2,055)

Net book amount 1,868 1,754

Movements in plant and equipment during the financial year

Opening net book amount 1,754 1,368

Additions/(disposals) 556 683

Depreciation expense (442) (297)

Closing net book amount 1,868 1,754

Total Plant and equipment 5,172 5,413

9(ii). Right of use asset – LeasesRight of use assets

Right-of-use assets – at cost 7,303 -

Less: Accumulated amortisation (1,413) -

Net book amount 5,890 -

Movements in right of use assets during the financial year

Opening net book amount - -

Additions/ (disposals) 7,303 -

Amortisation expense (1,413) -

Closing net book amount 5,890 -

Total right of use assets 5,890 -

Interest expenses (included in finance costs) 384 -

2020 2019

$’000 $’000

9(iii). Intangible assetsIntangible assets – at cost 6,146 2,865

Less: Accumulated amortisation (2,578) (1,976)

Net book amount 3,568 889

Movements in intangible assets during the financial year

Opening net book amount 889 617

Additions/ (disposals) 3,319 643

Amortisation expense (640) (371)

Closing net book amount 3,568 889

Total intangible assets 3,568 889

10. Trade and other payablesTrade creditors 1,865 178

Other creditors 1,619 3,602

3,484 3,780

11. Lease liabilities(a) Current

Lease liabilities 1,419 -

1,419 -

(b) Non-current

Lease liabilities 5,552 -

5,552 -

12. Provisions(a) Current

Employee benefits 1,410 1,079

1,410 1,079

(b) Non-current

Employee benefits 198 174

Restoration of leased property 400 400

598 574

Movements in non-current provisions other than employee benefits during the financial year:

Restoration of leased property

2020 $’000

Carrying amount at start of year 400

Increment arising from revised estimate -

Carrying amount at end of year 400

Restoration of leasehold property

This amount represents a provision for the present value of estimated expenditure required to remove any leasehold improvements as required by the terms of the lease of the Sydney office premises.


2020 2019

Notes $’000 $’000

13. Other liabilities(a) Current

Deferred revenue 13,314 12,945

Special collections in advance 415 435

Lease incentive 1(n) - 183

13,729 13,563

(b) Non-current

Lease incentive 1(n) - 763

- 763

Lease incentive previously represented the unamortised portion of amounts received to enter into the operating lease for Sydney office accommodation. Lease incentives are now reported under note 11 and included as part of the Right of use asset and lease liabilities under AASB 16.

b) Interest rate riskInvestments in managed funds have some exposures to underlying investments in financial assets which may be subject to fixed and/or variable interest rates. This exposure varies and the share of exposure to the company is not considered significant.

Cash and cash equivalents are subject to variable interest rates, however the direct impact is minimised due to the relatively low allocation to this asset class.

c) Credit riskCredit risk arises from cash and cash equivalents, and accounts receivable.

Cash funds are only invested with major banks where credit risk is mitigated through the company’s policy of only investing with the four major Australian Banks or with other Approved Deposit Institutions with S&P ratings equivalent to or better than the majority of the four major Australian Banks.

The maximum estimated exposure to credit risk at 30 June 2020 is the carrying amount of term deposits, cash and cash equivalents, and accounts receivable which have been recognised on the Statement of Financial Position net of any provision of impairment of these receivables.

d) Liquidity riskPrudent liquidity risk management implies maintaining sufficient cash and marketable securities. The company manages liquidity risk by continuously monitoring forecast and actual cash flows.

At reporting date, exposure to liquidity risk comprises trade and other payables of $3,484,000 (2019: $3,780,000). The majority of these liabilities mature in less than 60 days

14. Financial Risk ManagementFinancial risk managementThe company has exposure to a number of financial risks primarily related to its investment portfolio. The Board’s Finance, Risk & Audit Committee assists the Board in overseeing and fulfilling its responsibilities relating to risk management. Independent investment advisers monitor the performance of all investments and advise the Board on investment strategy, asset allocation and the selection of individual fund managers. Funds are invested with a diverse range of professional licensed fund managers, primarily through investment unit trusts covering a range of investment classes, strategies, geographical sectors and risk profiles. There are thirteen separate fund managers managing sixteen investment portfolios. Investment derivatives are used by some of the fund managers. The company has not invested directly in derivative transactions.

The company’s investment portfolio is strategically structured to maximise long term values and returns. These returns are used to fund a significant portion of total operating expenses. Whilst the portfolio is constructed to manage volatility, there are external influences and cycles that impact investment values and returns in the short term.

As a not-for-profit organisation, the company’s policy is to set short term operating expense budgets at a level that can be sustained by realistic medium term (5-7 year) investment returns. Accordingly whilst short term volatilities affect the value of investments and returns these are not considered as risks that will normally affect the company’s medium term operational and financial performance.

Financial risks faced by Standards AustraliaThe primary risks are market risk relating to investments and, to a lesser extent, credit risk and interest rate risk.

a) Market RiskMarket risk is the risk of loss arising from movements in market variables including but not limited to foreign exchange risk and market price risk.

i) Foreign exchange risk

Foreign exchange risk is the risk that the value of a financial instrument will fluctuate because of changes in foreign exchange rates. The company has some investments with international fund managers which invest funds in the USA and other countries. Some of these fund managers utilise derivatives to hedge against fluctuations between the Australian dollar and the currencies in which the securities they invest in are denominated. Some exposure to foreign currency risk is retained as part of the overall portfolio management strategy.

ii) Market price risk

Market price risk represents the risk that the value of a financial instrument will fluctuate as a result of changes in market prices, whether those changes are caused by factors specific to the individual instrument or its issuer or factors affecting all instruments in the market. The company’s investments have inherent pricing risks. This varies across the different asset classes based on the underlying securities or assets held by each individual fund manager. Asset classes invested are Australian equities, overseas equities, property, alternatives, infrastructure and cash.

Market price risk management involves decisions regarding the allocation of funds across the asset classes and includes management of those risks within these asset classes, that is, the selection of individual fund managers. Each fund manager’s performance is measured against industry recognised index benchmarks that are relevant to the particular investment class. Compliance of a manager’s investment approach against its mandate is also monitored.

The company’s exposure to market price risk at the reporting date was the value of investments in managed funds investments of $253,899,000 (2019: $268,873,000). Refer to note 8.

2020 2019

$’000 $’000

15. Commitments for expenditurea) Non-cancellable operating lease expense commitments:

Aggregate amounts contracted for at balance date but not recognised as liabilities – 20 Bridge Street, Sydney:

Not later than one year - 1,845

Later than one year but not later than five years - 8,151

Payable over five years - 373

- 10,369

The company leases office and car park space under a non-cancellable operating lease expiring 31 August 2024. There are terms in the lease including escalation clauses and renewal rights

b) Capital expenditure commitments

At 30 June 2020, the company had no commitments for capital expenditure (2019 $NIL).

16. Key management personnela) Directors

Directors of the company in office during the year are disclosed in the directors’ report that accompanies these financial statements

2020 2019

$ $

b) Key management personnel compensation 1,219,869 1,848,402

17. Contingent LiabilitiesThe company had no contingent liabilities as at 30 June 2020 and 30 June 2019.

18. Events occurring after reporting dateThere are no reportable events that have occurred in the period between balance date and the date of signing these financial statements.


Independent auditor’s report

Level 11, 1 Margaret St Sydney NSW 2000 Australia

Tel: +61 2 9251 4100 Fax: +61 2 9240 9821 www.bdo.com.au

BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.

INDEPENDENT AUDITOR'S REPORT

To the members of Standards Australia Limited

Report on the Audit of the Financial Report

Opinion

We have audited the financial report of Standards Australia Limited (the registered entity), which comprises the statement of financial position as at 30 June 2020, the statement of profit or loss and other comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, and notes to the financial report, including a summary of significant accounting policies, and the directors’ declaration.

In our opinion the accompanying financial report of Standards Australia Limited, is in accordance with Division 60 of the Australian Charities and Not-for-profits Commission Act 2012, including:

(i) Giving a true and fair view of the registered entity’s financial position as at 30 June 2020 and of its financial performance for the year then ended; and

(ii) Complying with Australian Accounting Standards and Division 60 of the Australian Charities and Not-for-profits Commission Regulation 2013.

Basis for opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Financial Report section of our report. We are independent of the registered entity in accordance with the auditor independence requirements of the Australian Charities and Not-for-profits Commission Act 2012 (ACNC Act) and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other information

Those charged with governance are responsible for the other information. The other information obtained at the date of this auditor’s report is information included in the registered entity’s annual report, but does not include the financial report and our auditor’s report thereon.

Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of directors for the Financial Report

The directors of the registered entity are responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards and the ACNC Act, and for such internal control as the directors determine is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error.

In preparing the financial report, directors are responsible for assessing the registered entity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intends to liquidate the registered entity or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the registered entity’s financial reporting process.

Auditor’s responsibilities for the audit of the Financial Report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at:

http://www.auasb.gov.au/auditors_responsibilities/ar4.pdf

This description forms part of our auditor’s report.

BDO Audit Pty Ltd

Gillian Shea Director


Standards Australia Limited – 2020 Annual Review 47Member organisations

The Australasian Corrosion Association Incorporated

Australasian Fire and Emergency Service Authorities Council

Australasian Furnishing Research and Development Institute Limited, trading as Furntech

The Australasian Institute of Mining & Metallurgy

Australasian Procurement and Construction Council Inc

Australian Acoustical Society

Australian Aluminium Council

Australian Automobile Association

Australian Building Codes Board

Australian Chamber of Commerce and Industry

Australian Communication Consumer Action Network

Australian Computer Society Inc

Australian Council of Trade Unions

The Australian Council on Healthcare Standards

Australian Dental Association Inc

Australian Fashion Council

Australian Industry Group

Australian Information Industry Association Ltd

Australian Institute of Architects

Australian Institute of Building

Australian Institute of Petroleum Ltd

Australian Medical Association

Australian Nursing & Midwifery Federation

Australian Organisation for Quality Ltd

Australian Paint Manufacturers Federation

Australian Retailers Association

Australian Steel Institute

Austroads Limited

AWA-AGGA Ltd.

Bureau of Steel Manufacturers of Australia

Cement Concrete & Aggregates Australia

Chemistry Australia

CHOICE

Civil Contractors Federation

Communications Alliance Limited

Concrete Institute of Australia

Concrete Pipe Association of Australasia

Consult Australia

Consumer Electronics Suppliers Association

Council of Small Business Organisations of Australia Ltd

Department of Industry, Science, Energy and Resources

Energy Networks Australia

Energy Safe Victoria

Engineers Australia

Exemplar Global

Federal Chamber of Automotive Industries

Fire Protection Association Australia

Forest and Wood Products Australia Limited

Galvanizers Association of Australia

Gas Energy Australia

Government of South Australia

Housing Industry Association Ltd

Insurance Council of Australia

JAS-ANZ (Joint Accreditation System of Australia & New Zealand)

Lighting Council Australia

Master Builders Australia

Master Plumbers Australia

Materials Australia

Medical Technology Association of Australia

Minerals Council of Australia

National Association of Testing Authorities Australia

National Electrical and Communications Association

National Retail Association Limited

NATSPEC/Construction Information Systems Australia

NSCA Foundation

NSW Business Chamber

NSW Fair Trading

Packaging Council of Australia

Plastics Industry Pipe Association of Australia Ltd

Plumbing Products Industry Group Inc.

Property Council of Australia

Royal Australian Chemical Institute Incorporated

WA Government – Building & Energy

Water Services Association of Australia

Welding Technology Institute of Australia

Standards Australia LimitedLevel 10, 20 Bridge Street Sydney NSW 2000GPO Box 476, Sydney NSW 2001Phone: +61 2 9237 6000www.standards.org.auABN 85 087 326 690

annual review 2020 - standards.org.au

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