Statement of Compliance
For the year ended 30 June 2023
Hon Sue Ellery MLC
Minister for Finance
In accordance with section 63 of the Financial Management Act 2006, I hereby submit for your information and presentation to Parliament, the Annual Report of the Department of Finance for the reporting period ending 30 June 2023.
The Annual Report has been prepared in accordance with the provisions of the Financial Management Act 2006.
Jodi Cant
Director General, Department of Finance
25 August 2023
Message from the Director General
At the start of the year, we launched our new blueprint for the future, Strategic Directions 2022-26, which came into effect on 1 July 2022.
This is a bold and ambitious plan which was developed in consultation with our people who played a leading role in helping shape our refreshed values.
I’m very proud of our values which reflect who we are and how we go about our business. Clarity, empathy, growth and collaboration are at the heart of everything we do including through our business planning, and our customer-centric approach when delivering services.
Throughout 2022-23, we continued to deliver the best possible outcomes for Western Australians across areas such as whole-of-government procurement, infrastructure delivery and revenue collection.
Building and construction continued to be a substantial part of our agency’s operations and teams delivered 84 projects with a total value of $524 million, with more than 70 per cent of 104 stimulus projects and four programs of work now complete. These included expansions and upgrades at schools such as Dianella Secondary College, Australind Senior High School, Muresk Institute, South Metropolitan TAFE Mandurah and North Regional TAFE Kununurra plus the Kalamunda Hospital palliative care upgrade and His Majesty’s Theatre balcony restoration.
In May 2023 we achieved practical completion of a significant project for the State’s sporting sector, the infrastructure upgrade to the Perth Rectangular Stadium (HBF Park). This stadium will host five football matches as part of the FIFA Women’s World Cup™ in July 2023.
In terms of major projects, our team continued to collaborate with client agencies on major capital works programs including regional hospitals in Geraldton, Bunbury and Peel, alongside planning for the Women and Babies Hospital, and the Aboriginal Cultural Centre.
With our infrastructure expertise and strong local networks, we collaborated with a number of agencies, local businesses and communities on reconstruction projects as part of the State’s response to the Kimberley flood recovery.
As we continued to deliver reform through new initiatives and frameworks, we launched Western Australia’s first State Commissioning Strategy for community services, which was developed in consultation with the community services sector. It’s a model with a more holistic, proactive and sustainable commissioning approach that aims to deliver greater cohesion between Western Australian Government agencies, service providers, peak bodies and consumer advocates with the most vulnerable members of our community at its core.
Through RevenueWA, we supported Government in its efforts to introduce a land tax concession on ‘build-to-rent’ developments to increase the supply of rental properties and improve security of tenure for renters. We continued to administer the First Home Owner Grant scheme and the Off-the-Plan duty rebate scheme to make ownership more accessible to Western Australians. We delivered cost-of-living relief through administering part of the Household Electricity Credit scheme, in addition to our usual delivery of a range of other grant and subsidy schemes.
I am passionate about innovation and in November we launched our first four-year Innovation Strategy.
Innovation for us, means change that adds value for our own agency as well as the whole public sector. Our team is working on a range of innovative initiatives including investigating circular economy principles for government buying.
Continuing on the theme of effective services, we progressed our cross-sector reform program ServiceWA this year, delivering continued exceptional service at the in-person centre in Bunbury and working with agency counterparts on the ServiceWA Strategy. For another year running the Bunbury Service Centre has achieved impressive results. This year it achieved 95 per cent customer satisfaction and 944,000 registered customers on the ServiceWA app.
This year we participated in the Public Sector Commission’s Agency Capability Review Program. The review is a sector-wide approach to improvement by identifying the capabilities needed to be a high performing agency in the Western Australian context.
The review found that we are a well performing agency delivering sector-wide initiatives. It noted our vital role in the WA public sector as a central agency, with a mandate to set policies and frameworks for other agencies and entities to follow and hold them accountable against.
The review concluded that we can better clarify and communicate our responsibilities as a central agency and as a functional leader with the sector and this is underway.
I was particularly pleased the review noted that we have a highly engaged workforce and a people-oriented culture that values innovation. These are of importance to me as I know the power of teamwork in driving Finance to be customer-centric and the best place to work. We are proud of the culture that we are developing, which is inclusive, values diversity and provides an environment where people can thrive. Our staff engagement and commitment are what makes us such a well-respected department and adds to our reputation as a can-do agency.
I would like to thank our exceptional staff for another outstanding year delivering for the WA Government, our customers and, of course, the local community. At the same time, I would like to recognise our Corporate Executive and leadership team and congratulate Chris McMahon on his appointment as Commissioner of State Revenue.
Finally, I was pleased to be reappointed as Director General for the next three years. It is a pleasure leading our team, working to make Finance the best place to work and continuing to deliver what is needed today to achieve a better tomorrow for Western Australia.
Jodi Cant
Director General
Performance highlights
- 84 building projects delivered
- $21.3 billion revenue collected on behalf of the WA Government
- $30.2 million in works contracts awarded under the Aboriginal Procurement Policy
- $251.9 million value of grants and subsidies administered
- $3.1 billion combined value of projects managed by Major Projects
- $524 million capital works projects and programs delivered
- $22.3 million savings realised through office accommodation strategies
- 76% customer satisfaction score across Finance
- $190 million of maintenance delivered
About us
Since we were established in 2011, Finance has built a reputation as an agency that delivers on a diverse portfolio for the State.
Our strong foundation has positioned us as a trusted agency and an outcomes-focused service provider.
As a central agency, Finance has a mandate to lead whole-of-government policy, influence strategy and provide sector wide leadership and services to other WA Government agencies and entities. In this role, we are responsible for ensuring all agencies and entities comply with these mandates.
Finance has a direct service delivery role to other agencies, businesses, and the WA community. We deliver a range of services that are reflected through five core areas: Advise, Build, Buy, Collect and Deliver.
Advise
We provide strategic advice across the WA Government and the public sector on reform projects, project and asset management, procurement, and policy.
Build
We plan, deliver and manage fit-for-purpose solutions for major community infrastructure such as schools, hospitals, prisons, cultural and sporting facilities and government office accommodation.
Buy
We lead government procurement and leverage our buying power to secure products and services for government, driving value for money for WA taxpayers.
Collect
We collect revenue to fund government services and administer payment of grants and subsidies to the WA community.
Deliver
We facilitate and optimise delivery of corporate services, using insights and leading technologies to continuously innovate and improve.
Enabling legislation
Finance was established as a department on 1 July 2011 under section 35 of the Public Sector Management Act 1994.
Responsible Minister
Finance reports to the Minister for Finance. In this period we reported to:
The Hon Sue Ellery MLC (current); and
The Hon Dr Tony Buti MLA (July – December 2022).
Organisational chart
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The Hon Sue Ellery MLC Minister for Finance |
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Jodi Cant Director General |
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Kate Ingham Deputy Director General |
Shaun Whitmarsh Deputy Director General |
Nicki Godecke Deputy Director General |
Henrietta Farrell Chief Customer Officer |
Chris McMahon Commissioner of State Revenue |
Geoff Gilbert Deputy Director General |
| Advisory Services | Buildings and Contracts | Major Projects | Customer Experience and Strategy | RevenueWA | Service and Invest |
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Our offices
| Northern region | Central region | Metropolitan region | Southern region |
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Legislation and schemes administered
The Department of Finance administers the following Acts:
- Betting Tax Act 2018
- Betting Tax Assessment Act 2018
- Commonwealth Places (Mirror Taxes Administration) Act 1999
- Duties Act 2008
- First Home Owner Grant Act 2000
- Land Tax Act 2002
- Land Tax Assessment Act 2002
- Pay-roll Tax Act 2002
- Pay-roll Tax Assessment Act 2002
- Pay-roll Tax (Indigenous Wages) Rebate Act 2012
- Pay-roll Tax Rebate Act 2010
- Pay-roll Tax Rebate Act 2012
- Procurement Act 2020
- Public Works Act 1902 [a]
- Rates and Charges (Rebates and Deferments) Act 1992
- Stamp Act 1921
- Taxation Administration Act 2003
[a] Part 1A of the Public Works Act 1902 is administered by the Minister for Finance and principally assisted by the Western Australian Building Management Authority.
Performance management framework
Outcomes-based management framework
Broad government goals are supported at agency level by specific outcomes. Agencies deliver services to achieve these outcomes. The following table illustrates the relationship between the agency’s services and desired outcomes, and the Government goal it contributes to. The key effectiveness indicators measure the extent of impact of the delivery of services on the achievement of desired outcomes. The key efficiency indicators monitor the relationship between the services delivered and the resources used to produce the service.
| Government Goals | Desired Outcomes | Services |
|---|---|---|
| Strong and Sustainable Finances: responsible, achievable, affordable budget management. | Due and payable revenue is collected and eligible grants, subsidies and rebates paid. | 1. Revenue assessment and collection, and grants and subsidies administration. |
| Value-for-money from public sector procurement | 2. Development and management of Common use Contract Arrangements, State Fleet leasing and disposal, and providing facilitation service for agency specific contracts. | |
| Efficient and effective corporate services to client agencies. | 3. Corporate services to client agencies. | |
| Value-for-money from the management of the Government's non-residential budlings and public works. | 4. Leads the management of government buildings including planning, project delivery, and maintenance thereof. |
Changes to the outcomes-based management framework
Finance’s outcomes-based management framework did not change during 2022–23.
Shared responsibilities with other agencies
Integral to the success of both Finance and the Government is the ability to partner with others. As a central agency, Finance works closely across the sector to facilitate the efficient operations of government, informed decision-making, and value for money outcomes for Western Australians.
This is achieved through providing leadership and strategic advice to Government on initiatives to improve the operations and management of services across the public sector.
Agency performance
Advise
We provide strategic advice across the WA government and the public sector on reform projects, project and asset management, procurement, and policy.
Continuously improving procurement
As the functional lead for procurement across the WA Government we are focused on continuous improvement.
Supported by the Procurement Act 2020 (WA), the WA Procurement Rules bring together all procurement types under a consistent set of whole-of-government policies. Initiatives aimed at improving practice across all streams of procurement during 2022-23 included:
Opening up works consultancy panels
We continued to develop a framework to allow agencies to purchase works consultancy services under a Common Use Arrangement model. Only agencies with existing works powers will be able to use this arrangement. The first category for ‘non-residential engineering and related services’ was released for public comment in April 2023. The intent is that other categories will be added over time.
ICT Procurement Improvement Program
The first initiative we developed under the Information and Communications Technology (ICT) Procurement Improvement Program was the ICT Procurement Framework, which was launched in September 2022.
The framework takes a principles-based approach to ICT procurement. It defines the responsibilities of all relevant stakeholders and provides guidance at an agency and individual procurement officer level.
It is based on:
- promoting small to medium enterprises and local businesses;
- being outcomes focused;
- ensuring procurement is flexible to adapt to changing requirements; and
- adopting innovative technologies.
We are progressing other initiatives under the ICT Procurement Improvement Program including the development of ICT specific procurement guidelines. Priorities include guidance on proof of concepts and liability capping, which aim to provide greater clarity and consistent good practice for agencies, while driving value for money outcomes for the WA community.
Works Procurement Harmonisation Program
As part of our functional leadership in procurement role we have commenced a program to harmonise works procurement practices across the public sector. The program is seeking to standardise practice leading to greater efficiency and an improved experience for industry in dealing with government.
The objectives are to:
- drive the efficient implementation of the WA Government’s economic, social and environmental policies in works procurement;
- provide confidence to the community that works procurement processes are consistently applied in a fair and transparent manner;
- reduce complexity and cost to works suppliers in transacting with government; and
- enhance staff mobility and capability transfer across the sector
Strategic Forward Procurement Planning
Under the WA Procurement Rules, agencies are required to provide us with annual forward procurement plans covering goods, services and works procurements valued at or more than $250,000 (GST inclusive) across the next two financial years.
The Strategic Forward Procurement Planning (SFPP) 2022-23 data submission process commenced in May 2022, and we developed two reporting dashboards.
They are:
- The Agency SFPP Dashboard, which makes a complete dataset available for use by the public sector (released in October 2022).
- The Public SFPP Dashboard, which contains a restricted set of data relevant to suppliers (released in May 2023).
The Agency Dashboard helps with identifying strategic procurement opportunities and encourages good procurement planning across the sector, while the Public SFPP Dashboard will assist suppliers to plan and identify opportunities to do business with government and reduce the barriers faced by local business to work with government.
Prioritising the economic participation of Aboriginal businesses
We administer the Aboriginal Procurement Policy (APP) on behalf of the WA Government.
Launched in July 2018, the APP was extended in 2021 for a further three years, with a progressive increase in contracting targets to four per cent by 2023-24. The APP was expanded to include Aboriginal participation requirements, enabling government to support Aboriginal businesses through its direct and indirect spend.
Since its introduction, nearly 960 contracts, with a combined value of more than $821 million, have been awarded to 253 Aboriginal businesses across the WA Government. Two-thirds of these contracts have been awarded in regional areas.
During the first half of the 2022-23 financial year, 151 contracts across the WA Government were awarded to Aboriginal businesses with a combined value of more than $60 million. This represents 6.83 per cent of all WA Government contracts for goods, services and works being awarded to Aboriginal businesses, meaning agencies are tracking towards nearly double the 3.5 per cent target set in the APP for 2022–23.
We will continue to review the performance of the APP, including how it connects to and complements the State Commissioning Strategy and the future whole-of-government Aboriginal Community Controlled Organisation Strategy 2022-32.
In addition to administering the APP, we are committed to supporting regional businesses and strive to exceed the prescribed targets for contracts awarded to Aboriginal businesses.
During the financial year, we awarded a range of goods, services and works contracts to Aboriginal businesses across WA. Finance entered into 104 contracts which were awarded to 26 separate registered Aboriginal businesses. These had a total value of almost $30.2 million, representing 14 per cent of contracts above $50,000 and were done primarily on behalf of our clients.
Developing procurement capabilities across government
We continued to progress our Procurement Capability Development Strategy 2022–25.
As part of this, we launched a strategic procurement community of practice for senior public sector leaders to hear insights from experts, share learnings and build networks.
To recognise procurement across the sector we introduced a new Best Practice in Procurement award category as part of the Institute of Public Administration Australia WA Achievement Awards. In addition, we developed and launched risk management in procurement and advanced contract management training.
Other initiatives included:
- Enhancing the procurement capability indicator tool and improved its uptake across the sector. The tool provides a procurement self-assessment mechanism for individuals and the results are provided to managers to identify areas for development.
- Releasing new or updated contract handover, contract management performance and risk management in procurement guidance.
- Commencing work on new, State-wide works procurement capability tools, guidance and training.
Supporting community services
In August 2022, we launched WA’s first State Commissioning Strategy (SCS) for community services with a focus on long-term outcomes for individuals and the community.
One SCS priority requires agencies to develop individual Agency Commissioning Plans. These provide a mechanism to communicate with the sector and government how line agencies are driving change at a departmental and individual service or program level.
They are expected to link to agency budget considerations and provide transparent information to lead to opportunities for greater collaboration across agencies.
During the year, we facilitated community services commissioning capability training to more than 150 staff across 10 government agencies. We conducted executive briefing sessions for 38 staff across government.
Maintaining public confidence in government contracting
We continued to administer Australia’s first Debarment Regime during the financial year.
The regime, which commenced on 1 January 2022, delivers on the WA Government’s election commitment for procurement reform. It applies to persons or organisations that directly or indirectly supply, or propose to directly or indirectly supply goods, services, community services or works to the WA Government.
It covers a range of offences from fraud to breaches of occupational health and safety legislation and establishes grounds and processes that allows suppliers to be excluded from contracting with the WA Government in the worst cases of wrongdoing.
We collaborated with other investigative agencies including the Corruption and Crime Commission, WA Police Force and the Commonwealth Attorney-General’s department to establish a framework for administering the regime, including reaching data sharing arrangements with the Department of Justice (Justice) and RevenueWA.
During 2022-23, we worked with Justice to develop an application programming interface (API) portal to facilitate the agencies’ data sharing arrangement.
The portal allows us to submit direct requests for bulk data from Justice’s databases, which automatically returns supplier matches for criminal prosecutions in the WA courts.
Optimising government assets
We lead a whole-of-government Asset Management Reform (AMR) program aimed at realising more value from government assets and improving asset management maturity and capabilities.
As part of the program, the Building Asset Management Framework (BAMF) was developed during the year. The BAMF underpins the rollout of a sector-wide asset management maturity assessment and improvement program, which commenced in May 2023. A Building Condition Assessment (BCA) program is underway across all agency-owned office buildings and will be completed by November 2023.
The AMR program seeks to achieve office accommodation savings of around $48 million to 2025-26. This will be achieved through better planning and utilisation of existing government office accommodation and implementation of contemporary fitouts, using Finance’s expertise and buying power to achieve value-for-money outcomes. We are on track to achieving the target with $32.6 million saved to date.
Addressing climate change
The WA Government is committed to achieving net zero emissions by 2050, plus cutting emissions by 80 per cent below 2020 levels by 2030.
We are working with the Department of Water and Environmental Regulation (DWER) and other agencies on a range of climate and environmental initiatives, planning for potential whole-of-government projects as well as contributing to policy development. In addition, we are considering strategies to reduce our own emissions in line with the 2030 target.
Our achievements in the sustainability space this year include updating our technical guidelines for non-residential buildings, which provide a guide to agencies in the design of government buildings plus will help the WA Government meet its emissions reductions priorities.
Specifically, we have updated the technical guide for water efficiency, which lifts the minimum Finance requirements for water efficiency of sanitary fixtures and fittings. The updated technical guide was published on WA.gov.au in October 2022.
Finance also has a new approach to the reduction of waste on non-residential construction projects. The new approach mandates that a minimum of 80 per cent of all construction and demolition waste from its project sites is diverted from landfill.
Achievement of this outcome is monitored through monthly reporting from head contractors.
We are now working on updating technical guide TG040, which is an environmentally sustainable design guideline for non-residential government buildings. The updated guidelines are expected to go live in July 2023, with further amendments to be made in the future to align with Government’s interim emission targets and the availability of renewable energy.
Contributing to net zero emissions through management of State Fleet
We promote zero or low emission transport solutions through our State Fleet operation. Since the State’s Electric Vehicle (EV) Strategy was released, uptake of EVs by agencies has been positive with more than 80 EVs on the road and more scheduled for delivery.
We are investing $800,000 to install EV charging stations in government buildings. To date, we have supported the installation of 46 chargers across 31 locations. Last year, State Fleet procured 40,000 tonnes of carbon credits to offset the effects of tailpipe emissions from vehicles leased under State Fleet arrangements.
Build
We plan, deliver and manage fit-for-purpose solutions for major community infrastructure such as schools, hospitals, prisons, and government office accommodation.
Overseeing infrastructure stimulus
Our Infrastructure Delivery Unit has oversight of the State’s $39 billion Asset Investment Portfolio (AIP).
Our role is to advise, direct or deliver major aspects of the State’s residential and non-residential building AIP, excluding Government Trading Enterprises and Department of Transport portfolio projects.
As part of our work, we seek to ensure tenders are scheduled in line with the construction industry’s capacity to deliver the works.
During 2022-23 we delivered outcomes including:
- Working with agencies to review and realign project schedules to help alleviate pressure and cost escalations in the construction industry.
- Introducing a new project assurance mechanism to review and advise on the costings and schedules for business cases prior to being submitted to the Expenditure Review Committee.
Delivering major projects
During 2022-23, we managed the planning and execution of significant major capital works projects.
Our delivery teams worked with client agencies to deliver robust project planning in accordance with the WA Strategic Asset Management Framework.
Our projects include:
- Women and Babies Hospital ($1.8 billion)
- Bunbury Regional Hospital redevelopment ($278 million)
- Geraldton Health Campus redevelopment ($122.7 million)
- Peel Health Campus transformation ($152 million)
- Casuarina Prison expansion ($183 million)
- Screen Production Facility ($106 million)
- Department of Primary Industries and Regional Development new metropolitan facility ($320 million)
- Aboriginal Cultural Centre project ($104 million)
Perth Children’s Hospital settlement with John Holland
In November 2022, Major Project’s Commercial Services team led the successful settlement of the ongoing dispute with John Holland, relating to the construction of the world-class Perth Children’s Hospital.
The parties, on a without admission of liability and commercial basis, agreed to resolve the proceedings, and settle all claims and counterclaims between them, ending the dispute which had been ongoing since 2017.
The settlement successfully avoided a 16-week trial which was due to commence in March 2023, however a final decision was not forecasted until late 2025.
Bunbury Regional Hospital redevelopment
Expressions of Interest were called for managing contractors to design and construct the $278 million project in February 2023.
Once complete, the Bunbury Regional Hospital redevelopment will deliver additional beds, an expanded emergency department, increased operating theatre capacity, new maternity, birthing and neonatal services, new clinical equipment, new emergency access and mental health facilities. It will also include WA’s first regional training, education and research centre, and a boost to the hospital’s digital capability.
Early critical works, including a new car park, were completed in 2022.
Aboriginal Cultural Centre project
It was announced in August 2022 that the preferred location for the world-class Aboriginal Cultural Centre for WA was the current Terrace Road car park site in Perth.
The site was chosen primarily because of its connection to the Swan River (Derbarl Yerrigan), Heirisson Island (Matta Gerup) and Kings Park (Katta Koomba), which are places of cultural significance to Noongar people.
The Whadjuk Cultural Authority representatives on the Aboriginal Cultural Centre Steering Committee were asked to consider six different locations near the Swan River (Derbarl Yerrigan). The selection of the site went through an extensive cultural investigation and consultation process, which has been endorsed by the wider Whadjuk reference group for the project.
The project marked another milestone in November 2022, with a smoking ceremony of the Terrace Road site prior to the start of ground investigation works.
The WA and Commonwealth Governments have currently committed $104 million towards the project.
Modular ward facilities completed
We are at the centre of some of the most innovative WA Government infrastructure projects.
One example this year was the completion of a project involving the addition of 120 beds via the construction of four, integrated and state-of-the-art, 30 bed inpatient modular ward facilities.
The health campuses involved were Rockingham General Hospital, Bunbury Regional Hospital, Osborne Park Hospital and Bentley Hospital.
The commissioning of this project, announced in November 2021, marked a new era for the WA public health system.
We worked with the Department of Health on this project and every effort was made to fast-track works at each of the four sites, with the wards being delivered to full compliance with building, development and Australasian Health Facility Guidelines and fully integrated with their sites within 11 months of project announcement.
This innovative infrastructure solution saw strong collaboration between all involved including health service providers and the main contractor for the works.
The design of a hospital is traditionally a very extensive, lengthy process that can span years. This expedited option over a traditional bricks and mortar construction, was achieved via a combination of factors, including the design and construction methodology.
Supporting a vibrant and sustainable construction industry
We continued to support the local building and construction industry in a number of ways.
In May 2022, the WA Government announced measures including the establishment of a $350 million provision for cost escalation and the introduction of ‘rise and fall’ provisions into Departments of Finance and Communities’ contracts.
Within the $350 million provision, up to $30 million was set aside for a Head Contractor Relief Scheme, available to head contractors delivering eligible projects for Finance and Communities, awarded between October 2020 and September 2021.
As at 30 June 2023, Finance had received 30 claims, of which we had assessed, in part or full, 23 claims resulting in approved Scheme payments of $5.56 million.
In addition, we continued to focus on cost control and the schedule of tenders being released to market, ensuring a sustainable pipeline of work for the building and construction industry while not exacerbating market conditions.
We have been collaborating with the Master Builders Association of WA as part of a joint industry working group examining recommendations in their WA Building Industry Reform Package 2022 report which relate to Finance contracts.
The working group is exploring where further structural changes can be made to improve the way government does business with industry.
We are a member of the Contractual Frameworks Working Group which sits under the WA Building and Construction Industry Consultative Committee, which was established by Government in June 2022.
This committee includes representatives from building and construction companies and contractors, employer peak bodies, relevant unions, such as the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) subcontractor associations and the Master Builders Association of WA, as well as representatives from relevant public sector agencies.
The focus of the group is to provide advice to Government regarding issues affecting the commercial sector of the WA building and construction industry and the WA Building Industry Reform Package 2022 report.
The Committee also consults and advises Government on issues relating to industrial relations and safety, diversity and workforce management, and ways to stimulate building activity, skills development and jobs growth in the sector.
Buying local
One way we support regional economies is by incentivising head contractors to use local subcontractors and locally manufactured or supplied building materials on regional government projects. Under the Western Australian Buy Local Policy 2022, head contractors are required to report on their local content commitments on projects valued at more than $1.5 million.
Reporting as at 30 June 2023 indicates that 32 of the 37 contracts under construction in regional WA were awarded to regionally based head contractors with a total contract value of $409.3 million.
These businesses committed to more than 476 local supplier engagements at a total value of $154.7 million and, so far, payments worth $89.9 million have been made to 750 local suppliers. This represents 58 per cent of the commitment by value and 158 per cent by number of suppliers.
Annual Supplier Performance Awards
In August 2022, we held our Supplier Performance Awards. The awards recognise local suppliers that have excelled on Finance-led construction projects over the previous two years.
Colab Construction, based in Centennial Park, received the award for Best Aboriginal Contractor, recognising its outstanding work on the Albany Department of Transport office fitout, Albany Police Complex and the Katanning Research Station.
Other winners included:
- Best Contractor: PS Structures (Balcatta)
- Best Regional Contractor: Pilbara Constructions (Port Hedland)
- Best Consultant: TAG The Architecture Group (Perth)
- Best Cost Manager: Rider Levett Bucknall
- Best Project: Department of Primary Industries and Regional Development (DPIRD) Laboratories
- Contractor: ADCO Constructions
- Consultant: Silver Thomas Hanley
- Cost Manager: RBB
- Project Manager: Kevin Truscott
- Project Director: Gary Dixon
Building, upgrading and maintaining government infrastructure and buildings
We manage the planning, design, construction, and maintenance of non-residential buildings including schools, health facilities, police, fire stations and sporting facilities on behalf of all government agencies.
In 2022–23, we delivered 84 non-residential infrastructure projects with a total value of $524 million on behalf of the WA Government and the community. We have also completed 70 per cent of 104 stimulus projects and four programs of work, forming part of the WA Recovery Plan, with more than $1 billion worth of projects underway, plus delivered maintenance works across the State valued at approximately $190 million.
Primary and secondary schools
We delivered several primary and high school projects this year. All buildings required for the start of the 2023 school year were completed.
These included:
- Four new primary schools – Landsdale Gardens Primary School, Dayton Primary School, Wellard Village Primary School and Madora Bay Primary School.
- One new high school – Piara Waters Senior High School.
- Additional stages and upgrades at two high schools and one primary school – Bob Hawke College Stage 2, Ridge View Secondary College upgrades and Yarralinka Primary School Stage 2.
- Education Support building – Burns Beach Primary School.
Remaining works continue for Wellard Village Primary School, Madora Bay Primary School, and Ridge View Secondary College, Bob Hawke College and Piara Waters Senior High School which are due to be fully completed later in 2023.
We completed works on the following projects this year:
- Dianella Secondary College – new performing arts centre ($5.3 million)
- Kyilla Primary School – new classroom block ($6.3 million)
- Wanneroo Secondary College – conversion and refurbishment of gym and theatre into a new drama theatre, and improvements to outdoor eating area ($6.4 million)
- Australind Senior High School – additions ($15 million)
- Lakeland Senior High School – education support facility upgrade ($6.2 million)
- North Regional TAFE Roebourne – new classroom block ($7.9 million)
- North Regional TAFE Kununurra – health and hospitality trade training centre ($6 million)
- South Metropolitan TAFE Mandurah – new hospitality, hair and beauty training centre ($16.7 million)
- North Regional TAFE Broome – hospitality and student services centre ($11.8 million)
- Albany Senior High School – performing arts building ($6.3 million)
- Muresk Institute – campus expansion ($9.9 million)
- Wickham Primary School – kindergarten and pre-primary teaching block ($3.5 million)
TAFE upgrades
This year we delivered and managed the construction of key TAFE projects.
- METRONET trade training centre
- This new $5.4 million trade training centre, located at North Metropolitan TAFE’s Midland campus, was officially opened in March 2023. It was built to support training for jobs in the rail industry and for meeting the diverse training needs of the METRONET program.
- North Regional TAFE Minurmarghali Mia (Roebourne)
- This $7.9 million project delivered contemporary multi-purpose training facilities to the campus, which plays a key role in connecting the local Aboriginal community to vocational education and training. The student hub facility was completed in November 2022 and the other classrooms reached practical completion on 30 January 2023.
His Majesty’s Theatre balcony reconstruction
Our work to restore parts of His Majesty’s Theatre to its former glory was officially unveiled to the public in February 2023.
The $15.6 million project reinstated previously removed heritage balconies to their original condition.
Works included a new upper circle bar and function area, a repainted façade, and installation of upgraded lighting and LED screens.
State Football Centre
The new State Football Centre will revitalise the land at Queens Park open space and provide a world-class sporting facility, catering for all levels of football. The project is being delivered in a two-stage process – a forward works component and main works contract. The centre will be used by teams visiting Perth as part of the FIFA Women’s World Cup™ in July 2023.
Works included two floodlit pitches, capable of high-performance and high intensity use, a two-storey building with a grandstand (capacity of 700 spectators through permanent seating, with the ability to expand its capacity), and supporting infrastructure, including change rooms and a gymnasium.
Perth Zoo café project
The WA Government has committed $51 million for a range of projects as part of the Perth Zoo Master Plan 2040. The first stage of the project, which was delivered this financial year, was the $21.8 million project involving the construction of a new café and separate function centre.
Practical completion was achieved in May 2023 and it is now transitioning to operations. The official opening is expected in late-2023.
Newman Health Service redevelopment
This $61.4 million purpose-built facility is specially designed to act as a one-stop shop for the local community and includes a new emergency department, inpatient beds, emergency and treatment bays, a dedicated medical centre, consultation spaces and a dental clinic with space for two dental chairs. We finalised the works this year and the facility was officially opened in May 2023.
Fremantle Hospital
During the year we progressed works at Fremantle Hospital including the completion of a new ophthalmology unit, which opened in September 2022.
In addition, upgrades to Wards F4 and D4 at Fremantle Hospital reached practical completion in April 2023, and provide improved spaces for rehabilitation services and more beds for patients.
We continue to work on Fremantle Hospital Acute Mental Health bed project, which will see 40 additional beds created for patients with a mental illness in the south metropolitan region.
As part of the 2023-24 Budget an additional $8.9 million was committed to the project, bringing the total budget to $54.4 million. The project is expected to be completed in December 2024.
Sir Charles Gairdner Hospital
Upgrades to Sir Charles Gairdner Hospital’s C14 ward were completed in May 2023. The facility now includes 25 new inpatient beds with functionality to manage infectious disease through specialist air-conditioning, isolation rooms and the ability to split the ward into two cohorts to operate in a pandemic mode.
Kalamunda Hospital palliative care upgrade
Officially opened in July 2022, the $9.5 million Kalamunda Hospital palliative care upgrade includes the refurbishment of patient rooms, ensuites and amenities, improved access and upgrade of outdoor spaces, an art therapy room and enhanced facilities for family and carers.
PathWest – State Mortuary upgrade
During the year, preliminary works were completed on the $8.7 million upgrade and expansion at the PathWest State Mortuary. With practical completion scheduled for July 2023, the works feature state-of-the-art post-mortem theatres and a dedicated crime suite.
It also features a larger and more streamlined admissions area, enhanced audio-visual equipment and dedicated infectious autopsy theatre.
Albany oncology
The state-of-the-art Albany radiation oncology facility was opened in March 2023, delivering a WA Government commitment to establish cancer services in the Great Southern. The $13.1 million facility provides patients with access to specialised cancer treatment equipment which previously would have required a trip to Perth or Bunbury.
Social Housing Economic Recovery Package
We are delivering works on behalf of the Department of Communities as part of the Social Housing Economic Recovery Package. This package is providing new builds, refurbishments and targeted maintenance programs for social housing properties. One of the goals of the program is to prioritise the appointment of works to local trades and to support inclusive employment outcomes for Aboriginal people, women, youth and people with a disability.
We were requested to deliver 30 refurbishments within the metropolitan region with a combined value of $4.4 million. Of the 18 construction contracts already awarded, all have been awarded to Aboriginal businesses. Work continues into 2023-24.
Kimberley flood recovery
Following the devastating effect of ex-Tropical Cyclone Ellie in the State’s north in January 2023, we have been assisting lead agencies and flood impacted communities as part of the State’s Kimberley Floods Recovery program, led by the Department of Fire and Emergency Services.
As co-lead of the infrastructure reconstruction domain, we have collaborated with key asset owners and provided advice and support to the State Recovery Coordinator.
Our staff travelled to the Kimberley, visiting remote Aboriginal communities to assess the damage – to both residential and non-residential assets, including homes and schools. We expedited repairs to 20 Aboriginal housing properties in the remote community of Kupungarri with works commencing in March and completed in May 2023.
Perth Rectangular Stadium (HBF Park)
With a focus on delivering services on behalf of the Government to benefit the community, we are proud of our involvement in the $35 million Perth Rectangular Stadium infrastructure upgrade.
The project, integral to Perth’s preparations to host the FIFA Women’s World Cup™ matches in July 2023, reached practical completion in May 2023.
The facility was upgraded to meet FIFA standards and enhance player and spectator experience and meet media requirements.
With a limited timeframe for delivery, challenging market conditions and undertaking construction within an operational environment, the procurement strategy – a hybrid ‘construct only’ with ‘principal supplied’ and ‘novated contracts’ – ensured project timeframes were met, the upgraded venue could successfully host FIFA Women’s World Cup 2023™ matches and the upgraded facilities would provide ongoing benefits for the community.
Works included:
- new stadium sports lighting
- specialist sports turf
- new digital video boards and advertising ribbons
- a new player’s race tunnel
- player amenities including change rooms
- improved disability access for the public;
- new VIP foyer and offices, and
- access and civil works upgrades.
Delivering dynamic sector workplaces and priority office accommodation projects
We continue to deliver fit-for-purpose office accommodation solutions while delivering ongoing savings to Government.
We assist agencies with:
- planning, procuring and managing office accommodation
- financial modelling and business case preparation
- office accommodation design and project delivery, and
- relocation change management.
This financial year, we realised over $22.3 million in savings across accommodation relocation projects. This was achieved through better planning, using existing office accommodation and delivering contemporary fitouts.
Enabling the consolidation of Parliamentary functions
We are delivering a solution to ease long standing office accommodation pressures at Parliament House. This includes consolidating various parliamentary functions into a single building, providing fit-for-purpose accommodation over an initial 15-year term.
The new development will house the Parliamentary Services Department, the Legislative Assembly, Legislative Council, the Leader of the Opposition Party, the Leader of the Non-Government Party, and four Parliamentary Electorate Offices.
In 2022-23, the base-build construction of a four-storey building at 2 Parliament Place, West Perth, was completed. Following fitout, stakeholders will commence relocation from late-2023.
Delivering facilities to support emergency service responses
We are leading the delivery of a multi-agency office refurbishment program in Kununurra and consolidated services for the WA Police Force, and Departments of Communities and Justice into single premises. This project will improve the efficiency of existing space in the region and avoid the need to procure additional leased space for government workers.
Additionally, we assisted the Departments of Communities, Health, and WA Police Force in sourcing office accommodation to support the State’s response to the Kimberley flood recovery efforts and COVID-19 pandemic.
Supporting agencies service delivery requirements
In May 2023, we delivered the Department of Transport’s new Driver Vehicle Service Centre in Butler. The new 1,100 square metre building accommodates about 90 staff including staff who relocated from the Joondalup centre. The new site includes a contact centre space, licensing centre and a co-working hub for staff.
We are managing a project for the Department of Communities to consolidate three premises into one new building in Joondalup. The new building is on schedule to be ready in mid-2024.
In addition, we are project managing the refurbishment of 1 Midland Square in collaboration with new building owner Georgiou. The building will provide fit-for-purpose accommodation for the Department of Communities, Child and Adolescent Health Services (CAHS) and Landgate.
Base-building and fitout works are underway, with agency relocations to occur from April 2024 for Landgate and CAHS, and February 2025 for Communities. This initiative will ensure a strong public sector presence remains in the heart of Midland, providing long-term benefits for the local economy and community.
Buy
We lead government procurement and leverage our buying power to secure products and services for Government, driving value for money for WA taxpayers.
Leveraging whole-of-government buying power
Common Use Arrangements (CUAs) are whole-of-government buying arrangements that harness the WA Government’s buying power and use well-established terms and conditions to mitigate financial, legal and reputational risk.
We currently manage 34 CUAs with agencies spending approximately $1.3 billion through these arrangements in the 2022-23 financial year. The coordination of these arrangements substantially reduces the administrative costs for both industry and State agencies and has saved Government at least $296 million this year.
GovNext ICT CUA
In February 2023, it was announced that the GovNext ICT program would be entering a new phase with the current arrangement coming to an end. Introduced in 2015-16, GovNext aimed to consolidate the Government’s data centre requirements and reduce spending on ICT infrastructure.
We consulted with agencies throughout the year to understand their ICT requirements which will inform the new arrangements.
Tender opportunities to appoint suppliers will be advertised in early 2024, with agencies required to continue purchasing using GovNext until new arrangements are in place.
Facilitating procurement across government
We provide a one-stop-shop for agencies seeking advice and procurement assistance for all goods and services procurement valued at $250,000 and above.
Over the 2022-23 financial year, Finance facilitated 491 procurement processes including the award of 382 goods and services contracts on behalf of other government agencies with a total value of $2.1 billion. The procurements were delivered across a diverse range of sectors.
Kaartdijin student information system
We supported the Department of Education with the $272 million procurement of the student information system, Kaartdijin. The tender was advertised in April 2022 and awarded in June 2023.
The program assists in several key areas: student administration, timetabling, school administration, and finance and assets management. It impacts all 818 public schools, plus nine residential colleges, close to 42,000 school-based staff, a number of central services staff members and nearly 315,000 students across WA.
Transportables contract award
We facilitated the procurement process for the Department of Education’s Transportables 2022 program. The program aimed to increase the number of contractors with experience to construct and deliver transportable classrooms, to broaden industry capability and to mitigate the risk of non-delivery of units by a single supplier. Three companies were awarded contracts as part of the program: Quality Builders, MACS Australia and Australia Wide Transportables.
Menstrual products for secondary public schools
We facilitated the procurement for the supply of $4.06 million worth of menstrual products for secondary public schools in WA. This initiative provides students with free period products.
Manufacturer, Essity, was awarded the contract and schools received an initial supply of products at the end of Term 1, 2023 with products and dispenser installation delivered in Term 2.
TAFE equipment procurements
We supported the procurement of $5.2 million worth of trade equipment for TAFE. This included a hydrogen production system, heavy vehicle driver training simulator and electromechanical training systems.
Child and Adolescent Health Services (CAHS) panel of service providers
We are assisting CAHS with establishing a panel of service providers that can provide State-wide care, ranging from low to high complexity needs.
This $14.3 million contract allows CAHS to provide specialised clinical, social and community support for children surviving extremely premature birth, severe neurological incidents and other medical disorders which result in significant medium to long-term disability and/or dependence on technology. These services are required specifically for medically stable children who no longer require tertiary level care at Perth Children’s Hospital but require planned transition to home or to a residential care setting.
Finance has provided specialist procurement advice, ensured probity and transparency in the evaluation and reviewed offers from a range of small to medium organisations, some of which have comprised 500 plus pages. Finance has also played a key role in facilitating negotiations between CAHS and the preferred respondents and ensuring appropriate levels of clinical control and oversight are in place when delivering the required services.
Negotiations have been successfully completed with four out of five preferred respondents and the contract has been partly awarded, with the remaining preferred respondent negotiations currently ongoing.
Infringement Processing Solution
We facilitated the procurement of a new $52 million Infringement Processing Solution software, replacing the ageing system and integrating infringement processing from multiple agencies including the WA Police Force, Road Safety Commission, Departments of Justice and Transport. In future, the solution could potentially be expanded to other agencies that collect and/ or administer infringement notices.
Department of Mines, Industry Regulation and Safety (DMIRS) Helicopter Transport Services for WA-Array Program
Over the next 10 years, the Geological Survey of WA branch within DMIRS proposes to establish sites at 40 kilometre spacing across WA for the deployment of up to 1,500 passive seismic monitoring stations for WA-Array, and potentially for the Australian Lithospheric Architecture Magnetotelluric Project (AusLAMP) magnetotelluric measurements.
Access to about 60 per cent of the stations will be possible only by helicopter.
Finance assisted DMIRS with a panel arrangement ($20 million) with four helicopter companies providing in-field transportation services for ground clearances and equipment deployment, servicing and removal for those sites not accessible by road.
Piloting gender equality in procurement
We worked with the Department of Communities on a pilot program assessing the degree to which gender equality principles are implemented by suppliers on government contracts.
The Gender Equality in Procurement – WA Public Sector Pilot applies to goods, services, works and community services procurements valued at $250,000 and above.
It aims to collect baseline data about suppliers’ current workplace policies and initiatives to support gender equality. Nineteen agencies are participating in the pilot and are responsible for including a ‘gender equality clause’ in certain approach to market documents.
This financial year the ‘gender equality clause’ has been included in 115 awarded contracts with a total value of approximately $180 million. In late June 2023, the pilot was extended for a further 12 months.
Collect
We collect revenue to fund government services and administer payment of grants and subsidies to the WA community.
Administering relief measures
Housing
We paid $26.9 million in Building Bonus grants and $27.2 million in HomeBuilder grants during the financial year.
On 7 June 2020, the WA Government announced a $444 million housing stimulus package to boost the State’s COVID-19 economic recovery and support the residential construction sector.
As part of the package, a $20,000 Building Bonus grant is available to eligible applicants who entered a building contract, purchased a home off-the-plan in a single-tier development or built a home as an owner builder from 4 June to 31 December 2020.
We’ve also continued to administer the Commonwealth Government’s $25,000 HomeBuilder grant for building contracts entered into from 4 June to 31 December 2020. This scheme is for owner-occupiers who build a home, substantially renovate an existing dwelling or purchase a new home off-the-plan. This grant was reduced to $15,000 for contracts signed between 1 January and 31 March 2021.
Household Electricity Credit
We paid $6.7 million to 16,768 households in 2022-23 as part of the Household Electricity Credit scheme. A $400 credit was announced as a cost-of-living measure in the 2022-23 State Budget and we administered the credits for households that were not directly billed by Synergy or Horizon Power such as apartments, retirement villages and caravan parks.
Off-the-plan Transfer Duty Rebate Scheme
We paid $4.7 million in rebates under the Off-the-Plan Transfer Duty Rebate Scheme in 2022-23.
Announced in the 2023-24 State Budget, the administrative rebate scheme will be converted to an upfront duty concession in the Duties Act 2008 and the amount of assistance increased for preconstruction contracts signed from 11 May 2023 until 30 June 2025.
The rebate is available to owner occupiers and investors who enter into preconstruction contracts from 23 October 2019 until 30 June 2025, or contracts entered into between 4 June 2020 and 31 December 2020 in developments already under construction.
Delivering digital transformation
We continued to prioritise work on delivering our $31 million Digital Transformation Program this financial year.
With a focus on maintenance, modification and enhancement of revenue systems, the program runs until December 2024.
We have delivered the Client Risk Prediction, Lodgement and Payment Compliance and Increased Digital Services projects, while the following projects are underway:
- Access Management Improvements;
- Taxpayer Interactions, and
- Identity Resolution and Data Matching.
Leading legislative reform
We progressed our program of legislative amendments in 2022-23 including the following:
Duties Amendment (Farm-in Agreements) Act 2022
For over 25 years, mineral exploration in WA has been supported by a duty concession for certain mining transactions known as ‘farm-in agreements’. Following legal advice that identified significant issues with the concession, the legislation was amended to ensure eligible farm-in agreements continue to receive duty relief and that the concession would not be available in circumstances in which it was never meant to apply. After extensive industry consultation on the proposed amendments, the Act received Royal Assent on 1 November 2022.
Land Tax Assessment Amendment Act 2022
The Act was amended to ensure that eligible caravan and residential parks continue to receive a land tax exemption of up to 100 per cent. This was necessary due to a 2018 State Administrative Tribunal case which impacted the definition of ‘park home’, a term used in the legislation providing the land tax exemption. Consultation was conducted with relevant caravan park and park home industry groups during the amendment process. The Act received Royal Assent on 21 November 2022.
Land Tax Assessment Amendment (Build-to-Rent) Bill 2023
In 2022-23, the WA Government announced a 50 per cent land tax concession for up to 20 years from the 2023-24 assessment year for land containing an eligible new build-to-rent development. The Bill was introduced into Parliament on 17 May 2023.
Duties Act 2008 – Off-the-plan duty concession
In the 2023-24 State Budget, the WA Government announced that the off-the-plan transfer duty rebate would be extended from 24 October 2023 to 30 June 2025 for the pre-construction purchase of eligible off-the-plan apartments, with the rebate thresholds increasing from 11 May 2023. The rebate will also be converted into a concession in the Duties Act. The Duties Act 2008 will be amended to reflect these changes
Deliver
We facilitate and optimise delivery of corporate services, using insights and leading technologies to continuously innovate and improve.
Providing corporate services to client agencies
We provide corporate services including ICT, records management, payroll, work health and safety, finance and business services, and internal audit to the Department of Treasury.
In addition, we provide ICT services to the Government Employees Superannuation Board and deliver our Financial Management Information System (FMIS) platform to the Department of the Premier and Cabinet, the Public Sector Commission, Economic Regulation Authority, Infrastructure WA and the Salaries and Allowances Tribunal.
Financial Management System upgrade
In April 2023, we successfully upgraded the Oracle FMIS to the latest application version and migrated it to Oracle Cloud Infrastructure. The project commenced in late 2021 and both components of the project were completed in line with the original timeline and below budget.
Connecting WA Government services
As the lead agency for ServiceWA, we continued to progress this cross-sector reform program.
Our focus has been on exploring ways of providing services though single, easy-to-use entry points, whether these be in-person such as the ServiceWA centre in Bunbury or via digital channels such as the ServiceWA mobile application (app).
The ServiceWA Strategy was developed by Finance this year in collaboration with a further eight agencies affiliated with the program, including the Departments of the Premier and Cabinet’s Office of Digital Government, Treasury, Transport, Communities, Justice, Primary Industries and Regional Development, Mining, Industrial Relations and Safety and the WA Police. The Strategy will be used to inform the ServiceWA Future State Business Case presented to Government for consideration as part of the 2024-25 Budget.
Bunbury ServiceWA Centre
Since opening in October 2020, more than 124,950 customers have walked through the door, with 45,188 using the centre in 2022-23.
Customers can access services delivered by the Departments of Transport, Justice, Communities, Primary Industries and Regional Development, and the WA Police Force.
The customer satisfaction rating was 96 per cent for this financial year with an overall satisfaction rating of 99 per cent since opening.
ServiceWA app
The app has more than 944,000 registered customers and currently offers six government services. More than 10 new services are in development for launch throughout 2023-24.
Adding a special condition for paid union meetings
This year we collaborated with the Department of Mines, Industry Regulation and Safety to consult with State agencies, relevant peak bodies and unions to implement an initiative aimed at combatting wage theft.
This was a 2021 Government election commitment to provide an annual paid meeting with workers and the relevant union on government cleaning and security contracts to make sure that workers are properly advised of their employment rights.
We added a special condition of contract in procurement request templates which requires contractors to allow their employees to attend an information session on workplace rights conducted by the relevant union, at the ordinary rate of pay once per calendar year. This clause will be included in all State agency contracts for cleaning and security services.
This clause was added to procurement templates managed by us in May 2023. We also developed and published guidance documents to support agencies and contractors in implementing the special condition, including allocation of roles and responsibilities between agencies, contractors and unions.
Continuing customer advocacy
In 2022-23, we continued our customer advocacy program, which supports our intention to achieve customer centricity where our customers and their needs are the centre of our organisation.
The program has four key focus areas, Engage and Measure, Deliver, Focus and Grow and Learn, with each focus area supported by an action plan which will be measured, and progress reported on.
To support the program, Finance conducted the second of its annual customer surveys in November 2022 to measure customer satisfaction with our services and to understand their satisfaction drivers.
Our overall satisfaction result from 2,103 customers was 75 per cent with a 72 per cent ease of use score when using our services.
Encouraging innovation
In November 2022, our new Innovation Strategy 2022-26 was launched.
The strategy sets out the direction and definition of success for innovation at Finance. Our vision is to be a leading public sector agency in innovation, creating enhanced value for the customers we serve.
This year we provided several innovation training and development opportunities for staff and encouraged them to seek ways to provide improved services to our customers. We also progressed key innovation projects such as the exploration of circular economy principles in procurement. This project aims to determine if, and how, the community could benefit from the adopting the principles in WA Government contracting; and improving goods and services procurement outcomes through multi-agency collaboration via a pilot.
It achieved significant efficiencies including time and cost savings, consistent pricing as well as standard contractual terms and conditions, including volume discounts.
Our people
Our values-based culture is reflected in how we go about our business. We’re committed to being a contemporary agency that delivers customer-focused outcomes, celebrates diversity and strives to become the best place to work.
Becoming the best place to work
Our journey to become the ‘best place to work’ continues and on 1 July 2022 we launched our refreshed values (clarity, empathy, collaboration and growth). They continued to be emphasised throughout this financial year.
As part of this, more than 600 staff participated in values workshops, while the refreshed values were incorporated into team meetings, performance management, recruitment and leadership programs. Significantly, our 2022 People Engagement Survey showed a positive increase, (11 per cent increase from the previous year), in the way our values are guiding and influencing our work.
In 2022-23 we developed our new 2023-27 Strategic Workforce Development Plan. Shaped in consultation with staff, it identifies priorities and actions to ensure we are building a diverse, skilled and agile workforce.
Celebrating diversity
During the year we celebrated our diversity with a range of events including:
- NAIDOC 2022 – We joined forces with the Department of Training and Workforce Development (DTWD) to celebrate NAIDOC Week from 4 to 8 July 2022 with a series of events including a morning tea and interactive art workshop.
- Wear It Purple Day 2022 – In August, we offered staff a webinar hosted by Living Proud on the theme, ‘Still me, still human’.
- Faces of Finance – Conducted in September 2022, this photographic portrait project featured staff as part of our ongoing best place to work strategy.
- International Day of People with Disability – Held in December 2022 staff participated in activities such as completing daily tasks blindfolded, simulating dyslexia, and using a Braille machine.
- International Women’s Day 2023 – Held in March, our event was run in partnership with the DTWD and included a presentation on the Gender Equality in Procurement Pilot.
- Harmony Week 2023 – Our special morning tea was held in March with staff invited to share food from their cultural background and wear cultural dress.
- National Reconciliation Week 2023 – From 27 May - 3 June, we offered staff the opportunity to participate in events such as the Reconciliation WA Lunch, and a Walk and Lunch for Reconciliation.
In addition, we launched the following strategies during 2022-23:
- Diversity and Inclusion Strategy 2022-25 – Our strategy was launched on 24 October 2022 demonstrating our continued commitment to being a workplace where diversity is celebrated and inclusion is a focus for everyone.
- Disability Access and Inclusion Plan 2023- 2027 – Our new plan was launched in January 2023 with a commitment to ensuring inclusion principles are integrated in everything we do, with equal opportunities provided to everyone.
- Innovate Reconciliation Action Plan (RAP) – Endorsed by Reconciliation Australia, this plan was launched in February 2023 and provides a structured approach to support national reconciliation.
Providing development opportunities
We are committed to building leadership capabilities which are supported by our values and diverse culture.
Two programs – Leadership in Finance Teams (LiFT) and Aspiring Leaders – were conducted in the financial year. Sixty-five managers completed the LiFT program this year while 19 staff successfully completed the Aspiring Leaders program.
We supported staff to participate in external leadership programs including:
- Public Sector Commission’s Propel leadership program;
- Leadership WA’s Rising Leadership, Signature Leadership and Leadability (for staff with disability) leadership programs;
- Queensland University of Technology’s Public Sector Management Program; and
- CEDA’s Copland Leadership Program.
In addition, cultural awareness training was completed by 231 staff, while 352 staff completed Diverse WA Module 1 and 297 staff completed Diverse WA Module 2.
Recruiting graduates
Our award-winning graduate program, which began in 2011, has recruited more than 172 graduates, with 122 remaining in the public sector. Of the 2022 cohort, all eight were made permanent at the end of their graduate year.
In 2023 we welcomed nine graduates with degrees in areas such as accounting, architecture, law, international relations and Japanese who undertake a structured training program and rotate around our agency.
During the year, our graduate program was ranked as one of Australia’s Top Graduate Employers on the Australian Association of Graduate Employees list.
Supporting trainees
We hosted and supported two trainees from the Public Sector Commission’s Solid Future Aboriginal Traineeship Program.
One trainee was based at Djookanup in Osborne Park and rotated across three different business areas to learn about the career opportunities we offer. They completed their Certificate III in Government and made permanent in January 2023.
The second trainee commenced their Certificate III in Government in February 2023 at our Karratha office and is continuing their program.
Hosting interns
Five university students (four from The University of Western Australia’s McCusker Program and one from Edith Cowan University’s Work Integrated Program) completed 100 hours of internship placement with us during the year. They completed their internships in our Service and Invest and Advisory Services directorates.
Recognising what we do
We celebrated our biennial We Did It Expo for staff in March 2023.
With a focus on innovation and collaboration, the expo was attended by the Minister for Finance and Parliamentary Secretary plus more than 350 staff. It showcased some of the outstanding projects we’ve delivered for the WA community.
The expo provided the opportunity for staff to share achievements and customer success stories, show how we work collaboratively with other agencies while also learning more about the work of other teams.
Applauding our staff
During the year, several of our high-achieving staff were recognised for their work.
Our winners at the Institute of Public Administration Australia WA (IPAA WA) 2022 Achievement Awards were Mark Bryden and the ServiceWA app.
In fact, we were shortlisted for eight awards including individual nominations for our outstanding colleagues.
Our winners and nominees were:
- Mark Bryden – Leader of the Year Working within a Division, Team or Organisation – winner.
- ServiceWA App – in collaboration with Department of the Premier and Cabinet of WA, Health Support Services (WA health system) and WA Police Force – winner.
- ServiceWA Pilot – Best Practice in Public Sector Evaluation – special commendation.
- Susanne Harris – Leader of the Year Working within a Division, Team or Organisation – nominee.
- Nicki Godecke – Leader of the Year Working in State or Federal Government – nominee.
- Ventilation Program for Schools – in collaboration with Department of Education – nominee.
- Your Move – in collaboration with Department of Education – nominee.
- Modular Beds – in collaboration with Department of Health – nominee.
Trudy Grimshaw, Senior Project Director within our Major Projects directorate won the Excellence in Construction Award at the 2023 Women in Industry Awards in June 2023. She was recognised for her work on projects including the new Perth Children’s Hospital, Infrastructure Surge Units and Bunbury Regional Hospital redevelopments.
Two of our architects, Fiona Hogg and Dean Wood, were honoured by the Australian Institute of Architects (AIA) at a function held at Central Park. They were both acknowledged by their peers and the Institute’s Honours Committee by being elevated to ‘Fellow’ membership status of the AIA, a great honour. The awards were in recognition of their substantial careers and achievements as architects over a long period.
Diana Morellini, Senior Consultant with Service and Invest and our graduate program manager, was recognised as one of the Australian Association of Graduate Employers Top 30 Graduate Recruiters in the country.
Summary of Financial Performance
Actual results versus budget targets
Financial Targets
|
2023 Target(1) ($000) |
Actual ($000) | Variance(2) ($000) | ||
|---|---|---|---|---|
| Total cost of services (expense limit) | 1,767,579 | 1,651,778 | (115,801) | (a) |
| Net cost of services | 1,749,643 | 1,612,989 | (136,654) | (b) |
| Total equity | 1,247,329 | 1,258,692 | 11,363 | |
| Net increase/(decrease) in cash held | 1,855 | (62,764) | (64,619) | (c) |
| Approved salary expense level | 126,151 | 122,388 | 3,763 | |
| - Executive salary expenditure limit | 8,807 | 7,103 | 1,704 | |
| Agreed borrowing limit | 58,771 | 60,340 | (1,569) |
(1) As specified in the Budget Statements.
(2) Further explanations are contained in Note 10.1 ‘Explanatory statement’ to the financial statements.
(a) Actuals are lower than target largely due to lower than forecast expenditure in the capital works program.
(b) Actuals are lower than target due to reduced expenditure on the capital works program combined with higher than targeted income from gains on disposal of second hand vehicles.
(c) Increase in cash held is less than target due to the deferral of a component of appropriation drawdown to 2024.
Working cash targets
|
2023 Agreed Limit ($000) |
Actual ($000) | Variance ($000) | |
|---|---|---|---|
| Agreed working cash limit | 80,336 | 78,213 | 2,123 |
Key Effectiveness Indicators
| 2023 Target(1) | 2023 Actual | Variance | |
|---|---|---|---|
| Outcome 1: Due and payable revenue is collected and eligible grants, subsidies and rebates paid | |||
| Debt as a percentage of revenue raised | 0.85% | 0.72% | 13%(a) |
| Extent to which correct grants, subsidies and rebates are paid | 100% | 100% | - |
| Outcome 2: Value-for-money from public sector procurement | |||
| Average annual vehicle net capital cost: | |||
| - Per passenger vehicle | $3,200 | $2,753 | $447(b) |
| - Per commercial vehicle | $3,100 | $3,183 | ($83) |
| Extent to which client agencies agree that their agency contracts and common use agreements achieved value for money | 92% | 94% | 2% |
| Outcome 3: Efficient and effective corporate services to client agencies | |||
| Key effectiveness indicators are not reported for this outcome as it relates to the corporate services provided directly by the Department to support the outcomes and activities of the Department of Treasury and the Government Employee Superannuation Board (GESB). An exemption from the requirements of Treasurer’s Instruction 904 (3)(iv)(a) Key Effectiveness Indicator, has been provided by the Under Treasurer. | |||
| Outcome 4: Value for money from the management of the Government’s non-residential buildings and public works | |||
| Percentage of new building projects, valued over $5 million, delivered within the approved budget | 100% | 100% | - |
| Average office accommodation floor space per work point | 13.65sqm | 13.23sqm | 0.32sqm |
(1) As specified in the Budget Statements.
(a) The 2022-23 actual is lower than target due to higher revenue and lower debt levels, mainly driven by strong economic conditions.
(b) Actuals are lower than target due to strong resale values of used vehicles achieved over the period.
Key Efficiency Indicators
| 2023 Target(1) | 2023 Actual | Variance | |
|---|---|---|---|
| Service 1: Revenue assessment and collection, and grants and subsidies administration | |||
| Average cost per tax or duty determination | $31.87 | $32.50 | ($0.63) |
| Average cost per grant or subsidy determination | $24.49 | $19.62 | $4.87(a) |
| Service 2: Development and management of common use contract arrangements, State Fleet leasing and disposal, and providing facilitation service for Agency-specific contracts | |||
| Cost of facilitating the development and management of agency specific contracts as a percentage of the contract award value | 1.1% | 1.0% | 0.1% |
| Average administrative cost per vehicle for financing and managing the State Fleet service | $118 | $124 | ($6) |
| Cost of developing and managing whole-of-government common use contract arrangements as a percentage of the total annual value of purchases through the arrangements | 0.8% | 0.8% | - |
| Service 3: Corporate services to client agencies | |||
| The Department is assessing the appropriateness of Service 3 in its future Outcome Based Management Framework or if an exemption from should be sought | |||
| Service 4: Leads the management of government buildings including planning, project delivery, and maintenance thereof | |||
| Percentage of new buildings projects valued over $5 million, delivered by the approved timeframe | 90% | 96% | 6% (b) |
| Percentage of high priority breakdown repairs completed within agreed timeframes | 75% | 68% | (7%) (c) |
| The cost of managing government buildings including the planning, project delivery, and maintenance thereof, as a percentage of services delivered | 8.21% | 7.99% | 0.22% (c) |
(1) As specified in the Budget Statements.
(a) Actual is lower than target primarily due to scaling down of administration of the HomeBuilder and Building Bonus grants schemes.
(b) 27 of the 28 new building projects within the Building and Contracts program were delivered by the approved handover date.
(c) Actual is lower than target as a result of problems in sourcing both labour and materials combined with difficulties in gaining access to secure facilities to carry out required works.
(d) Actual result is better than target due to overall lower operational costs compared to budgeted costs, and higher than anticipated works program turnover costs.
Announcements
