CAFBA Annual Review 2021-22

President'sReport

2022 was a year in which we began to move towards a new normal. We have seen the best of people over the past few years, as we rose to meet unprecedented challenges, and it has made me very proud to be a part of the broker community. Our industry's current embrace of innovation and change has in many ways been inspired by these challenges, however, at the same time I see people taking comfort in a return to more normal settings.

CAFBA has been working tirelessly over the last 12 months to implement our strategic plan and there has been much cause for celebration. We have adopted the Professional Standards Scheme as our pathway to continued self regulation; our Education Council launched the CLFP designation and the industry leading digital education platform PACE; the first ever data survey results were published; and our Diversity Committee released their must-read paper and have started to implement its recommendations. Added to this was the long-awaited return of face-to-face PD days.

While these are all terrific outcomes, CAFBA continues to look ahead. Our role is to try to understand what the future looks like for our members and their clients, and ensure that we are able to put the industry in the best position to prosper. We have a generational opportunity with the PSS to move the commercial and asset finance broking industry from being a highly regarded group of practitioners to being a recognised profession. Our members deserve this recognition and the clients they serve will know that the solutions they are being provided with are appropriate for their needs. The PSS is a long term project and I am excited by the possibilities it brings. The feedback from our members has been terrific across the board, but I am particularly pleased by the support from our younger members, as these changes will provide them with a fulfilling career over the long term.

Advocacy continues to be a core activity of CAFBA as we seek to give our members and their clients a voice. The change of government has been seamless for our advocacy work, as we have long prioritised policy, not parties. We are appreciative of the access the new government has provided David Gandolfo's team, and we have had meaningful dialogue around a number of issues including AML, the continuation of the immediate expensing of assets where orders are impacted by supply chain issues, and APS 113.

We finished the year on a high with our first faceto-face Conference and Awards Night since 2019. The night was a huge success with nearly 400 people joining us to celebrate the best of our community I would like to congratulate the finalists and the winners. The highlight of the night was awarding Ian Elkner life membership to CAFBA. He is only the 4th person to be offered this honour and his reaction was priceless. Ian is universally loved and respected. I think we saw why in his acceptance speech.

Thank you again for your support in 2022. I hope you have a well deserved break over the holidays and come back refreshed and ready to make 2023 even better

Matthew Atkin CAFBA President

CEO'sReport

After two years of COVID-related interruptions, it was a pleasure to welcome back a full slate of CAFBA events this year and once again have our members connect and network with one another Our Women's Forums, CLYP networking events, Appreciation Cocktails, Golf Days and Professional Development Days were all extremely well attended, and it was great to see so many of you again.

CAFBA continues to evolve, and 2022 represented a watershed in our organisation's history in which we were at the forefront of several developments that are helping shape the future of our industry.

In February of this year, the Board decided that CAFBA should pursue a Professional Standards Scheme (PSS) as the course for the Association to take in order to achieve our strategic goals of further professionalising the commercial and asset finance industry and ensuring its selfregulating framework in the long-term

A Professional Standards Scheme is a legal instrument that binds associations to monitor, enforce and improve the professional standards of their members, and to protect consumers of professional services A PSS will set a standard of professionalism throughout the industry and send a positive message to consumers that commercial brokers are committed to upholding a level of excellence in their service

The Annual Review deals with the Professional Standards Scheme in more detail, however, the landmark designation will distinguish commercial and asset finance brokers as a recognised profession and represents one of the most significant reforms in our industry's history

As more and more of our industry continues to move online, this year we launched two innovative digital platforms: CAFBA Collaborate and our industry leading online education platform PACE, the Professional Attainment Centre of Education

CAFBA Collaborate was established to facilitate greater connection between members so that brokers can share strategic advice, solve challenges and discuss the industry through providing a dedicated Resource Library and Member Directory Search

After a slow start, CAFBA Collaborate gained wider traction throughout the year, and provided a forum for some great discussions between members.

The successful launch of PACE in September 2022 was a notable achievement The online platform features all CAFBA Education Council approved content, including all formal courses in Commercial Asset Finance, and offers members a far more efficient method of managing their CPD PACE's innovative use of a range of formats, including video content and podcasts, will keep users informed and engaged

The platform will continue to evolve over the coming months with the next step planned to be the development of a Mentoring Platform This platform will include a mentoring programme tailored to the commercial and asset finance industry that will provide guidance for both mentee and mentor along the way CAFBA Collaborate and PACE are both exciting initiatives that will benefit our members and Australia's commercial finance industry as a whole A better connected, more educated commercial finance industry will lead to better results for our customers.

As part of CAFBA's ongoing implementation of our Strategic Plan, in July we released two significant reports: CAFBA's Broker Sentiment Report and the final version of our Diversity and Inclusion Strategy These two reports exhibit our continuing work to promote and encourage policies that advance a professional, diverse, and innovative commercial finance industry, and provide our members with greater insights into all aspects of asset and commercial finance

CAFBA's “Commercial Lending Review”, a survey of lenders, brokers and aggregators, was the first of its kind in commercial finance We are grateful for the work of KPMG on this report, and the information gathered not only provides us with credible data to support our advocacy work when dealing with governments and regulators, but also offers our members the ability to gain a deeper understanding of the commercial finance industry at large, highlighting performance trends and industry benchmarks, in order to help them make better business decisions moving forward

As a pilot report, only information from a select few brokers was gathered, however, subsequent reports will seek greater participation across the lender, broker and aggregator cohorts and will over time reflect the commercial lending market as a whole.

As you know, 3 years ago CAFBA committed to improving the diversity of our membership so that our profile matched that of our customers. We have been working behind the scenes to develop a well-researched perspective and strategy designed to expand diverse representation within our industry The Board set up a specialist Diversity & Inclusion (D&I) Committee, headed by Board Member Sharon Piening. With the guidance of external D&I Consultant, Suzanne Mercier, the team explored existing barriers to diversity and inclusion, including some rather sensitive areas, to better understand what we need to do to shift the status quo. The team looked around the world to understand what was already in play and the impact that existing initiatives are having on diversity and inclusion. We now have a solid understanding of what's going on and how we will approach it.

Advocacy continues to be an essential part of CAFBA's activities, and we are extremely lucky to have David Gandolfo as our Advocacy Chair David's expertise and passion when advocating on behalf of our industry help ensure that best customer outcomes are achieved This year brought in a new government, and the benefit of CAFBA's practice of engaging equally with both sides of the political aisle, to make certain a

government or potential government understands our policy, was further highlighted.

I would again like to acknowledge the work of the Board this year and their numerous and significant achievements. Led by Matt Atkin as President, who has been the driving force behind our industry's move towards professionalisation and was a worthy nominee for the Australian Broking Awards' Industry Thought Leader of the Year, and Domenic Lo Surdo as Vice President, the Board has placed CAFBA at the forefront of change in a rapidly evolving industry, ensuring our members will be prepared for the future of commercial broking. A special mention must go to CAFBA Treasurer and leader of the Women of CAFBA Sharon Piening and co-Chair of Industry Intelligence Max McFarlane for all the terrific work they accomplished this year A special thank you to all our lender and aggregator affiliate members, whose continued support is greatly appreciated, and to the Commonwealth Bank as our Platinum Sponsor this year.

Acknowledgement must also go to to our education partner the Institute of Strategic Management (ISM) and Gerard Hermens for all their assistance.

As an association, CAFBA has come a long way, and there is still much to be done to achieve our goals. With our very capable board and qualified membership, I am confident we are in good shape to continue in our mission of growing and supporting a diverse profession of commercial finance brokers.

David Gill CAFBA CEO

Chair of Education

Terry Moody

Moody Kiddell & Partners Asset Finance Pty Ltd NEW SOUTH WALES

Chair of Advocacy

David Gandolfo

Quantum Business Finance VICTORIA

Board of Directors

President Matthew Atkin Atlas Equipment Finance VICTORIA

Vice President Domenic Lo Surdo Stamford Capital Australia Pty Ltd NEW SOUTH WALES

Secretary

Neil Ferguson

Ledge Finance Limited WESTERN AUSTRALIA

Treasurer

Sharon Piening

The 500 Group

VICTORIA

Director

Director

Board of Directors

Director

Gold

Bizcap AU

Citoplus Pty Ltd

Coaxion

Finance One Commercial P/L

Grow Finance

Alex Bank

Angle Finance

Astute Financial Management P/L

Banjo Loans

Business Fuel College Capital

Commercial Equity Group

Earlypay

Ebury Partners Australia P/L

Capital Australia

Finance New Zealand Limited

Fintelligence P/L

Grenke Australia

iDutch

Hermes Capital

Judo Capital P/L

NFC Aggregation

Nova Cash Flow Finance P/L

Iron Capital Group

La Trobe Financial Services P/L

Lend Capital P/L

MoneyTech Finance P/L

Morris Finance Ltd

Multipli P/L

Oak Capital

Octet Finance

Private Mortgages Australia

Quest Finance Australia

Resimac Asset Finance

TruePillars

Yellowgate

Your Client Matters

5. CAFBA Strategy & Implementation Plan

This year, CAFBA continued to undertake our Strategy and Implementation Plan 2021-2024 with majordevelopmentsmadeinkeyareas.Theforming of sub-committees to oversee this work has been an important initiative and helped focus the implementationtoaddresscoreissues.

As a reminder, the intention of the Strategy and Implementation Plan 2021-2024 is to play a central role in the commercial finance industry's ability to further professionalise through a coordinated commitment to higher education and selfregulation.Fourstrategicgoalswereidentified:

1. Education: All commercial finance brokers need to operate with a minimum standard of commercial education across the entire commercialfinancialsector;

2. Self-Regulation: Education, not regulation, is seen as the best way to manage practice rights withinthecommercialbrokingindustry;

3. Advocacy: CAFBA uses its influential policy voice to support brokers, small and medium-sized businessesandtheAustralianeconomy;

4. Member Value: CAFBA articulates a compelling value proposition that attracts current and new entrantstotheprofessiontojointheassociation.

1. Education

In September, the CAFBA Education Council successfully launched PACE, the Professional Attainment Centre of Education, our industry leading education platform. The platform represents an important step in maintaining our industry's self-regulating framework. A fully digitised platform, PACE allows brokers and lenders in the Commercial Lending sector to access a wide range of courses and tools to support their professionaldevelopment.

With a single sign-in to log-on, PACE provides transparent and consistent CAFBA Education Council approved content. The use of video content and podcasts, along with written format, ensures thatlearningisengagingandenjoyable.

Multiple choice assessments ensure that CPD obligations are met and that regulators and stakeholders have confidence in the quality of membereducation.

PACE will have a range of modules which will enable the CAFBA Broker to access all their Professional Developmentneeds,including:

All formal courses:

• Commercial and Asset Finance FNS41820 CertificateIVinFinancialServices(ComplexIssues inCommercialLending);

• Commercial and Asset Finance FNS51820 Diploma of Financial Services (Complex Issues in CommercialLending);

• CertifiedLeaseandFinanceProfessional.

Recurring CAFBA accreditation compliance courses:

The platform ensures CPD programs includes 5 criticalareasofdevelopment:

1. Compliance such as Ethics, AML-CTF, Code of PracticeandPrivacy;

2. Economic Environment such as Monetary Policy and Interest rate trends, business cycles and demand,creditconditionsandeconomicgrowth;

3. Product development and innovation such as new commercial products and application, lendingpolicychangeandcreditunderwriting;

4. Legislation and Regulations such as updates on key legislation in credit and providing credit advice, AML-CTF and Privacy updates and proposedchangesincredit;

5. Business and Management such as leadership training, business planning, budgeting, financial statement analysis, writing the Credit Memorandum amongst many other similar focal areas.

The platform eliminates expensive tracking and recording for Aggregators and ACL holders, by digital tracking, authenticating, and managing upload and scoring certified external activities including seminar and conferences attendances andotherlearningprogramswithotherproviders.

5. Self-Regulation

In order to secure our industry's self-regulating framework in the long-term, CAFBA made the landmarkdecisiontopursueaProfessionalStandards Scheme (PSS). In April, the Board submitted a formal Letter of Commitment to make an application under the Professional Standards Scheme. The Letter of Commitment recognises CAFBA's intention to prepare a scheme under section 7(1) of the Professional Standards Act 1994, and confirms that we have adequate resources and sufficient funding to meet the application requirements. This was the step in what will be a lengthy process, however, the benefits of the PSS for the long-term future of commercialbrokingjustifytheeffort.

For the purposes of regulation in Australia, one way of determining whether a group is a profession is to see if they operate under a Professional Standards Scheme. If they do, they have proved their selfregulatory capacity, and have been recognised by the combined Australian governments' Professional StandardsCouncil.

A Professional Standards Scheme is a legal instrument that binds associations to monitor, enforce and improve the professional standards of their members, and to protect consumers of professionalservices.

Any Australian professional association that meets the definitions and criteria outlined in professional standards legislation can apply for a Professional Standards Scheme. The Councils decide whether to approve such an application after considering a range of matters related to demonstrating commitment to professional standards and selfregulation.

In return for these commitments, Professional Standards Schemes cap the civil liability or damages that professionals who take part in an association's scheme may be required to pay if a court upholds a claim against them. Many other industry associations, such as the CPA, operate under this model, which provides government recognition of theindustry'sprofessionalstandardsandcapability.

Professional Standards Schemes encourage associations and their members to implement a range of measures to improve professional

standards and practices – from effective risk management strategies and continuing professional development programs, to codes of ethicsandconductandintegritysystems.

6. Advocacy

CAFBA continued to pursue its advocacy work, using its influential policy voice to support brokers, small and medium-sized business and the Australian economy, and the strength of our policy of engaging both sides of federal politics was again further underlined with the change in government in early 2022. CAFBA made important submissions to the government on the Australian Financial Complaints Authority (AFCA) Proposed Funding Model and the proposed changes to Consumer DataRightsinNon-BankLending.Wealsomadekey submissions to the federal budget on the importance of retaining the Instant Asset Write-Off Extension beyond June 2023, not as an emergency reliefmeasurebuttomeettheupcomingchallenges ofrisinginflation,interestratesandwagegrowth.

7. Member Value

As part of our strategic goal to increase member value by developing platforms that advance a professional and innovative commercial finance industry, and providing our members with greater insights into all aspects of the industry, CAFBA embarkedonthreesignificantinitiativesthisyear.

I. Broker Sentiment Report

CAFBA's inaugural Broker Sentiment Report, conducted by KPMG, sets out to provide a credible source of data for brokers, lenders and aggregators alike, that can be leveraged to better understand industry performance trends, sentiment amongst brokers and individual benchmarked performance, all with a view to help our members and affiliates in improvingbusinessdecisionmaking.

For many years CAFBA has recognised a lack of data in commercial finance which would assist us when dealing with government and regulators. As such, we decided to make the generation of this data a strategic priority. As a pilot report, only information from a select few brokers was gathered, however, subsequent reports will seek greater participation across the industry and will, over time, reflect the commerciallendingmarketasawhole.

The Broker Sentiment Report includes insights into broker offerings, settlement volumes and sizes, industries serviced by brokers, broker sentiments on future settlements and cash flows, and brokers perceptionsoflenders.

Key Highlights

Keyhighlightsofthereportinclude:

Broker Profile & Performance

• 86% of the 74 brokers surveyed have less than 20 employees;

• 95% of respondents offer Asset & Equipment financing, whilst less than half of broker firms offer finance for Commercial property, Working Capital and Operating & Finance Leases;

• 37 settlements were made on average each month per firm from July to December 2022, with an average settlement amount of $8.7m;

• Top 3 industries that saw large usage of brokers over the last six months for finance, include Construction, Transportation and Manufacturing.

Broker Sentiment

• 65% of broker firms surveyed believe the number of settlements will increase in the next 6 months, from January to June 2022;

• 80% of broker firms surveyed believe demand for Asset & Equipment and Commercial Property Finance will increase from January to June 2022.

Broker's Perceptions on Lenders

• Non-major banks ranked the highest in terms of satisfaction with lending products, turnaround times and after sales support among brokers surveyed;

• Major banks ranked the highest in terms of satisfaction with lending rates amongst the brokers surveyed.

II. CAFBA Collaborate

CAFBA Collaborate is an online platform exclusively for CAFBA members to connect, engage and share insights into the asset and commercial finance industry. CAFBA Collaborate allows members to

collaborate with fellow brokers to share strategic advice, solve challenges and discuss the industry. Featuresinclude:

• Discussions - members have the ability to communicate and connect with fellow brokers/membersonimportanttopics

• Resource Sharing - all attachments posted to discussions are archived in a dedicated Resource Library. Members can also add documents to shareanythingtheywant;

• Member Directory Search - Members can be found by name, location, company or area of interest.

III. Diversity and Inclusion Strategy

CAFBA's Diversity and Inclusion Strategy sets a clear path for CAFBA to follow in order to advance equality, inclusion and diversity within the commercial and asset finance industry and help members leverage the resulting benefits to create more resilient businesses that can both endure and drivechange.

Led by CAFBA Board Member Sharon Piening, the Strategy was developed with research by CAFBA's Diversity & Inclusion Committee into the barriers to and benefits of workplace diversity that went beyond existing thinking within the market. The Association commissioned Suzanne Mercier, CEO of Purpose to Profit, to examine the core problem: the barriers that are standing between the current state of play and a truly diverse and inclusive work environment.

The Diversity & Inclusion Committee's research found overwhelming statistical evidence in support of the benefits of a diverse workforce. Diverse teams make better decisions, deliver better results, are more productive, provide better customer service and are 9 times more likely to innovate than teams whicharelackingindiversity.

The Strategy identifies six key areas to address, with recommended actions for the Association to take over the course of 2022 to reach targeted outcomes.Theseareasinclude:

1. IncreasingthediversityofAustralia'sworkforceto matchthediversitywithinthepopulation;

2. Ensuring that within diverse workplaces, organisations are getting the full benefits of that diversity.

3. Powersharingandinclusion;

4. Gender Equity, which is considered a lead indicator for creating a more diverse workforce, andisgoingbackwardsonkeymeasures;

5. Leadership and ways to create a culture of inclusion;

6. Pathways into commercial and asset finance for a morediversegroupofpeople.

Some of the areas the Committee have chosen to explore are sensitive, however, it is CAFBA's belief that it is important for us to hear the views and frustrations of members of diverse groups in the population, and to keep them in mind as we developedourrecommendedstrategies.

The implementation of the Diversity and Inclusion Strategy's findings will significantly improve the quality of service the commercial and asset finance industry provides to our clients. From a business perspective,itisdifficulttoproperlyunderstandand serviceacommunitythatdoesn'thaveavoice.Italso means the insights and opportunities that come from different perspectives are invariably foregone. Simplyput,diversitymakesgoodbusinesssense.

5.1 CAFBA Advocacy Report

CAFBA continued to successfully pursue its advocacy work throughout a year which saw periods of lockdowns in NSW, Victoria and the ACT and a change of government, leveraging its strong relationship with both sides of the aisle of Federal Parliament, key regulators, and our membership of the Council of Small Business Organisations of Australia (COSBOA), to ensure that any new legislativechangesdidnotinhibittheimportantwork of commercial finance brokers, particularly when it cametotheabilityoftheindustrytoself-regulate.

In coordination with our ongoing meetings with government and regulators, CAFBA made important submissions on the Australian Financial Complaints Authority (AFCA) Proposed Funding Model and the proposed changes to Consumer Data Rights in NonBank Lending. Our key submission to this year's budget was the importance of retaining the Instant Asset Write-Off Extension beyond June 2023, not as an emergency relief measure but to meet the upcoming challenges of rising inflation, interest rates and wages growth. CAFBA pushed this argument repeatedly with the economic leadership teams withinbothpoliticalparties.

An overarching goal of CAFBA is to explain the role of a commercial finance broker to government and regulators and the need to differentiate consumer and small business lending. In July of 2021, The Australian Banking Association (ABA) announced that it had commissioned an independent review of the Banking Code of Practice (BCP). The review is being undertaken by Mike Callaghan AM PSM, and I had several very fruitful discussions with Mr Callaghan. There has been discussion at a high level as to whether the Code should be prescriptive or principle based, and it is CAFBA's view that a prescriptive approach is detrimental to small business lending. An over reliance upon compliance to rigid prescriptive rules diminishes the ability to adequately assess small business lending and diminishes the ability to make decisions based on the circumstances. Other, more detailed issues were discussed, and CAFBA will be providing the Review with a submissionformallyoutliningourviews.

David Gandolfo & Jim Chalmers in Canberra

In late 2021, CAFBA held a meeting with the then Federal Minister for Home Affairs, the Hon Karen Andrews MP, who had the responsibility for the Australian Transaction Reports and Analysis Centre (AUSTRAC). At the meeting, I briefed the Minister on the problems of disparity of interpretations of AML and KYC procedures between lenders, and how this ultimately can impact our ability as brokers to deliver finance to businesses. Through her department, the Minister then set up a meeting withAUSTRACDeputyCEO,PeterSoros,withwhom I had a very warm and productive online meeting. Mr. Soros thanked CAFBA for its advocacy and insights, and agrees the AUSTRAC guidance is very principled but should be more prescriptive, and an overhauloftheentireActisunderway.Thereviewof theActwilllookatspecificcustomer-levelissuesand more prescriptive, sectional (i.e. asset finance) procedures. We have suggested that AUSTRAC should issue its own clearly defined AML/CTF form, and we have received an undertaking that CAFBA will be consulted as a key stakeholder as the review oftheActprogresses.

CAFBA continued to maintain its close relationship with The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) and the important work they do advocating for the nation's small business owners, many of whom are the clients our industry serves. In January of 2022, ASBFEO held a policy forum meeting focusing on priorities for small businesses. Also in January, I held the first of our weekly meetings with the Council of SmallBusinessOrganisationsAustralia(COSBOA).

AtanothermeetingbetweenASBFEOandCOSBOA, I outlined the six key points that we believe should bemandatedbythebankingindustryintheeventof natural disasters such as bushfires or the floods which were experienced in QLD and NSW. These points were requested by and presented to representatives of the Dept of Prime Minister & Cabinet(PM&C).

The benefit of CAFBA's strategy to follow policy, not political parties, was underscored when Labor was voted into government earlier this year. In the lead uptotheelection,CAFBAorganisedaPolicyBriefing

with the Hon. Matt Thistlethwaite MP, then Shadow Minister. As part of the briefing we invited some of our Affiliate Members to attend, along with CAFBA Board members, so the industry at large could hear the policies of the Labor Party. The session was very interactive, and covered a range of topics including Labor's policy on the continuation of the IAWO, how too much regulation inhibits access to finance, responsible lending obligations, tax incentives for energyefficientvehicles,cybercrimeandmore.

In the run up to the election, I also attended a business meeting and dinner with then opposition leader Anthony Albanese where issues surrounding commercialfinancewerediscussed.

Summary of Australian Financial Complaints Authority (AFCA) Submission

CAFBA's Position

It is a condition of CAFBA membership that commercial equipment finance brokers must belongtoAFCA.

While CAFBA believes AFCA's role is important to the continuing protection of consumers and small business, it is our view that the legislation is too heavilyweightedtowardsthecomplainant.

Key Points

The proposed funding model addresses many of CAFBA's concerns, which were related to the fairness of the scheme not being equitable to our members.

Much of this criticism centred on the view that the legislation in its present form is heavily weighted

David Gandolfo and Bruce Billson

towards the complainant. Whilst vexatious complaints are discouraged, anecdotally there seemedtobeafinancialincentiveavailabletomaking a complaint, as there are no associated pecuniary costs if the complaint is not upheld. The costs for any complaintarebornebytheAFCAmember.

The proposed funding model addresses many of these concerns, and we congratulate AFCA on taking these issues into account when drafting the newfundingmodel.

In the past we had many instances of member feedback that whilst the complaint has eventually been determined in favour of the AFCA member, it has nevertheless come at considerable cost to the memberintimeandlegaladvice.

Whilst we appreciated there is discretion under the rules for vexatious complaints where there is no loss tothecomplainant,neverthelesstherewasstillacost borne by the member to defend the complaint and prove innocence. There is also no right of appeal, whichdeniesnaturaljusticetothemember.

Recommendations

We believe the introduction of five (5) free complaints will assist members to adequately manage any disputes, with mechanisms to reduce vexatious and unmeritorious complaints. It is our view CAFBA members have few complaints, so this will be a welcome introduction. Nevertheless, should a complaint be reviewed at no cost, there is still an internal opportunity cost by the AFCA member, particularly in time spent preparing the necessary defence to obtain a successful outcome.

There should be consideration of a pecuniary deterrenttothecomplainantwherethisoccurs.

We believe the proposed funding model is a positive step, and over time will be able to monitor outcomes and processes to ensure fairness is obtained to all parties.

Summary of Consumer Data Right Rules Amendments Submission

CAFBA's Position

CAFBA wants to ensure that professional commercial finance brokers, who operate under strict self-regulatory guidelines, are included under thelegislationasa Trusted Advisor.

Key Points

The explanatory statement to the rules changes states that 'the trusted adviser model will allow consumers to consent to an ADR disclosing their CDR data outside the CDR system with professionals thatare sufficiently regulated toreceiveCDRdata’.

The key to this is the concept of 'sufficiently regulated'.

All licensed brokers (which includes a number of CAFBAmembers)shouldqualify,giventhenatureof their licensing obligations: honest, efficient and fair conduct, responsible lending, no conflicts of interest to consumer disadvantage, adequate resources, compliance, insurance, AFCA membership.

Leaders Forum Luncheon

In 2017 QED Risk Services independently verified CAFBA's membership standards and concluded that CAFBA's requirements for membership either meet or exceed the requirements under the National Consumer Credit Protection Act 2009 and the regulatory guidance of the Australian Securities and Investments Commission (ASIC) for a person to meet the “fit and proper person” test for an AustralianCreditLicence(ACL).

In addition to this, if a person has two years' experience with a Licensee that holds the same authorisations that the person is seeking and they (including their organisation) have compliance arrangements and systems in place that meet the requirements of AS/ISO19600-2014 (Compliance Management), then that person meets the requirementsforobtaininganACL.

All commercial brokers, Australian Credit Licence (ACL) holders or not, operate under the same framework.

Therefore, for CAFBA members who are not licensed, we seek acceptance of them as a 'trusted advisor'.

Recommendations

To include CAFBA commercial brokers as a Trusted Advisor. This is consistent with changes intended “to facilitate current consumer practices of sharing their data with trusted third parties in order to receive advice or a service and increase convenience and control for consumers by enabling them to use theCDRtosharetheirdatawiththeirchosentrusted advisers. In turn, this will encourage greater participationintheCDRbyaccommodatingexisting and new use cases which rely on the ability to disclose data to third parties to be accommodated intheCDR”–asstatedintheexplanatorystatement.

David Gandolfo

CAFBA Advocacy Chair

5.2 CAFBA Education Council

It was a productive year for the CAFBA Education Council with the development of two key initiatives that will advance higher education standards throughoutthecommercialfinanceindustry.

The council continued to adapt the Commercial Lease Finance Professional (CLFP) to Australian tax, accounting and regulatory codes, and launched the designation at CAFBA's Annual Conference in November 2022. The CLFP designation is the preeminent credential for equipment leasing and financing professionals throughout the world, with CLFP designees demonstrating competency through testing of knowledge, continuing education and a commitment to their business practicesanddedicationtotheindustry.

The CLFP furthers CAFBA's commitment to education as a means of maintaining our industry's self-regulating framework and offers aspiring commercial brokers a clear pathway into the industry. With more brokers looking to diversify into commercial lending, CLFP ensures professional standards of conduct are maintained, and as the designationdemonstratescompetencyinarangeof subjects in commercial finance, the accreditation is internationally recognized, meaning that Australian CLFP holders will be able to work overseas to gain valuableinternationalexperience.

In December of 2021, the Council met to consider the adoption of a Continuing Professional Development (CPD) Compliance platform and Mentoring Platform, to progress the delivery of education content to the commercial finance industry.

The availability of the CPD Compliance platform will enhance the professionalism of the industry and provide confirmation of CPD as well as formal qualificationsforthosepracticingintheindustry.

The Council members in attendance committed to proceed with both the CPD Compliance platform and the Mentoring Platform, and in September 2022 we launched the Professional Attainment Centre of Education (PACE), an industry leading educationplatform.

Combining video content, podcasts and written format, the PACE platform features a range of modules, including formal courses in Commercial and Asset Finance. With a single sign-in to log-on, PACE provides transparent and consistent CAFBA EducationCouncilapprovedcontent.

The use of video content and podcasts, along with writtenformat,willensurethatlearningisengaging and enjoyable. Multiple choice assessments will ensure that Continuing Professional Development (CPD) obligations are met and that regulators and stakeholders have confidence in the quality of membereducation.

PACE helps users manage their CPD records by giving them the ability to record all completed CPD hours on-platform, as well as upload documents and add attendance and completion evidence of externalCPDactivities.

The PACE dashboard will give users an immediate visual reminder of their completion percentage for each mandatory compliance requirement which is included on the platform. Each training activity that users complete will be added to their “Training Record” and will come with printable certificates of completion as well as reporting capabilities to your aggregator, approved HR/Compliance/Risk personnelmanageroremployer.

PACE will have a range of modules which will enable the CAFBA Broker to access all their Professional Developmentneeds,including:

All formal courses:

• Commercial and Asset Finance FNS41820

CertificateIVinFinancialServices(ComplexIssues inCommercialLending);

• Commercial and Asset Finance FNS51820 Diploma of Financial Services (Complex Issues in CommercialLending);

• CertifiedLeaseandFinanceProfessional.

Recurring CAFBA accreditation compliance courses (including):

• Anti-Money Laundering and Counter Terrorism Financing;

• PrivacyAct;

• BankingCodeofPractice;

• Ethics.

Legislation and Regulatory module with relevant general information and changes from the Australian Securities and Investment Commission andtheAustralianPrudentialRegulationAuthority.

Economic Environment module includes Reserve Bank of Australia rate setting and outlook, as well as forward general economic, gross domestic product and interest rate outlook from leadingeconomists.

Product Update and Changes module includes lender updates, product guides, and Education Councilmemberinput.

Business Management module includes courses on leadership, performance management, human resources management, business planning and development as well as the all-important budgeting.

WiththeadoptionofPACE,theCouncilwillbeableto efficiently deliver and monitor commercial education fortheindustryandprovideamentoringpathwayfor new entrants. The Mentoring platform will provide support and qualified mentoring for those wishing to pursueacareerincommercialfinance.

Terry Moody

Chair of Education Council

6. Commercial Finance Market Overview

6.1 Commercial Property Debt Market Update

As we move through December and look back on the yearthatwasinCommercialPropertyFinance,Ithinkthe most apt word to describe the year would be “interesting”. After the prior two years of positive market conditions, characterised by low interest rates and rising property values across almost all real estate sectors, 2022 saw the emergence of headwinds to the market.

Inflation

Thebuzzwordforthisyearwasinflation.Inflationrose by 1.8% in the September quarter to round out at 7.3% annually. According to figures from the Australian Bureau of Statistics, this was the highest annualised inflation figure since 1990. The most significant price rises were new dwelling purchases by owner-occupiers (+3.7%), gas and other household fuels(+10.9%)andFurniture(+6.6%).

Investment Assets

CRE asset values have commenced what looks to be a deflationary period on the back of softening yields. Borrowing costs are now higher than actual prime yields were 12-18 months ago, which is a typical leading indicator for deflation of asset valuescommercial property investors look for a 1%+ spread betweenyieldandborrowingcoststodeliversufficient equity returns. Given rates rose so quickly, we certainly haven't seen the full effect of the rising borrowing costs on asset values, as the rate rises will take time to work through the cycle. Most purchasers and vendors are waiting for rates to stabilise early next year before theymakeanysignificantbuy/selldecisions.

Lending Covenants – Investment Loans

The banks have started to put borrowers on notice regarding interest cover ratios which over the past 2 years have typically been set at 2 times interest cover (that is, the net income of the property needs to meet the interest on the loan at least 2 times). Given borrowing costs have risen 250% in the past 9 or so months, most loans would be in breach of such covenants.

Talks of rate rises from the RBA started early in the year, but it wasn't until May that Governor Lowe actually commenced what would turn out to be a monthly cycle of rate rises. We saw the year commence with a historically low cash rate of 0.10% and end the year at 3.10%. Whilst we have seen 3% increases within a 12 month span in the past, never have we seen such rises off such a low base. Then the CRE benchmark borrowing rate, the BBSY, moved almost unilaterally with the cash rate. As a result, effective borrowing costs on CRE increased 150% over a 10 month period, with prime interest rates starting the year at around 2% per annum and ending the year around 5% per annum.

What did rising interest rates mean for Commercial Real Estate (CRE)

We are aware of some lenders sending out breach notices primarily for ICR breaches, reserving their rights. Borrowers in this position have options, but they can be capital intensive. We certainly don't expect to see the banks act irrationally in this regard and borrowers will likely be given time to remedy any breaches. We also expect to see the banks relax ICR covenantstoaround1.5times.

Ultimately though, for borrowers who can't comply, theoptionswillbe:

• Paydown existing loans such that covenants are complying;

• Sell the asset (or portion thereof)/don't proceed withtheacquisition;or

• Refinance or seek terms from alternate / secondary lenders

Of course, as revaluations, refinances and rollovers occur, valuations will need to be undertaken. If asset values trend down as we think they will, LVR breaches will overtake ICR breaches as the main issue at play here.Itwillbeinterestingtoseethisplayoutover2023.

Construction

Inflationary pressures were not limited only to interest rates. Construction costs continued to surge through the first 9 months of 2022. Along with rising interest rates and declining asset values, rising construction costs placed enormous pressure on many developer's feasibilities.

With the aforementioned economic headwinds, most lenders, both bank and non-bank, lowered leverage andincreasedconditionalityandduediligenceonnew lending This did leave many developers either delaying or shelving projects, or looking for other fundingsolutions,betheymezzaninedebtorequityto make deals work. We therefore saw a slight decline in the volume of construction loans on the back of these factors.

On a positive note, In the final quarter of 2022, our developer and builder clients reported building costs plateauing and for some materials, prices softening. We do expect to see cost and supply issues dissipate thedeeperwegetintoit.

New housing supply into major capital cities remained constrained over the course of 2022. That, coupled with low residential rental vacancy rates nationally, shouldaugurwellforresidentialconstructiononcethe market can get a handle on interest rates and constructioncosts.

Liquidity

The rise in interest rates saw government bonds, term depositsandotherlowyielding,riskaverseinvestments return to favour In the last few months, we have seen the flow-on effects of this to some of our non-bank lenders, some of whom raise capital from retail and sophisticated investors Where liquidity was abundant over the past 2 or so years, there is a mild tightening occurring at present It may in time lead to tightening of conditions and lowering of LVR's as it becomes more a “lender's market”. There is limited evidence to suggest this will become a deeper issue at present, howeverwearealwaysmonitoringthesituation

Where to for the next 12 months?

Interest rates will be a huge determining factor as to what happens next year From owners of commercial real estate to property developers, to lenders and investors in CRE backed Mortgage Funds, we believe a lot of participants are waiting to see where the rate

risesendandthe“newnormal”begins.Onthebackof a bit more certainty in that regard and underlying fundamentals like low unemployment, an under supplied housing market and low residential rental vacancy rates, the back end of next year could see a pick-up in residential construction. CRE asset values willtakesometimetobeddown,howeverwedothink lenders will act reasonably in assisting clients with ICR and LVR breaches. Of course, there are alternate sourcesofcapitaltoassistwiththeseissuestoo.

Jeremy Wilson

Head of Structuring & Transactions, Stamford Capital Australia

6.2 Commercial Equipment Finance Market

The outlook for business investment remains positive

Whilst AFIA's research shows commercial equipment finance has contracted over the period, the Reserve Bank of Australia's Statement on Monetary Policy (November 2022) reports that business investment remainspositive.

Business investment was little changed in the June quarter. Growth in machinery and equipment investment remained elevated, as firms responded to strongdemand(Graph2.13).

By contrast, non-residential construction investment declined as capacity constraints and adverse weather limited the pace at which work could be completed. Surveymeasuresof capacityutilisation andinvestment intentions point to a positive outlook for business investment Non-mining capacity utilisation and

business conditions remain elevated; capacity utilisation was around its highest level in over three decades in September. Business confidence is around its long-run average, and liaison suggests that firms are generally optimistic about the longer term outlook for demand. The ABS Capital Expenditure Survey showed that, in aggregate, firms increased their expectations for investment in the 2022/23 financial year, though this may partly reflect elevated input costs (Graph 2.14). Non-mining firms expected to increase investment in machinery and equipment, but revised their intentions for non-residential construction investment slightly lower compared with the previous survey, as capacity constraints and ongoing wet weather are expected to hamper the pace of construction work. Mining firms reduced investment intentions for the current financial year Liaison suggests that planned investment by the mining industry will largely be to maintain production rather than to expand capacity Mining firms are also returning much of the earnings arising from elevated commodity prices to investors, rather than reinvesting profits.

Equipment Finance Industry Aggregates

Volume ($bn) 2021/21 2021/22

General Equipment Finance $34.0 $36.6

Fleet leasing $6.4 $7.3

Total Equipment Finance $48.2 $45.6

Receivables ($bn) 2020/21 2021/22

General Equipment Finance $80.6 $84.3

Data sourced from Australian Finance Industry Association (AFIA)

7. CAFBA Membership

Overthe2021-2022year,CAFBAmembershipgrewby 10% across the Full and Associate Member categories. While this growth is partly due to the decision to expand membership to all commercial brokers, it also reflects the view of many existing brokers that CAFBA ismorealignedtotheiractivities,andbetterrepresents the issues facing commercial finance brokers. Many new members have therefore joined from other associations or have dual membership to distinguish their activities between consumer and commercial lending.

A key strategy of CAFBA's is to provide resources and assistance to brokers who are new to the industry. With the introduction of the Certificate IV and Diploma in Commercial Finance, over time, many of thesebrokerswilljoin CAFBAwith theright credentials tobeprofessionalcommercialbrokers.

As of 1st July 2020, CAFBA introduced a new category ofmembership,Provisionalmembers,tocatertothose members who need to obtain the new educational requirement of the Diploma. Provisional members have 12 months to meet this higher educational standard,andthiscategorycontinuestogrow.

Affiliate membership declined slightly, which was due in part to COVID and a restriction of sponsorship opportunities. The majority of these are a range of lenders, from traditional equipment financiers to cash flowfinancingandfintechproviders,allofwhomoffer products that may suit the differing needs of brokers' clients.

However,CAFBAisalsobeingsupportedbymanynonlenders which can provide a different suite of services to brokers, including marketing companies, software providers, accountants and equipment valuers. All these organisations provide additional resources for our broker members, and CAFBA appreciates the supportprovidedbyitsAffiliateMembers.

The Women of CAFBA has a proud history of inspiring and connecting women within the commercial and assetfinanceindustry.

Run by a team of female brokers, many of whom are business owners, Women of CAFBA is committed to organising a wide range of quality events and educational sessions to provide support and opportunities to women working throughout all areas ofcommercialandassetfinance.

At the beginning of this year, we revisited the purpose of the group and agreed to continue with our aim of connecting and inspiring members and the community. We also renewed the Women of CAFBA's mission:

To help women in emerging, mid-career and senior roles achieve their career goals and to encourage our association to continue to work with member organisations to raise awareness of the business benefits of gender diversity and innovation as well as to actively expand the talent pool of working women atallstagesoftheircareers.

The forums are designed to bring women working in the commercial sector together to meet face-to-face andstrengthentheirrelationshipswitheachother.The events encourage women in the industry to network and support one another, and are not only open to female brokers but also encourage female support staff to attend. These events help women visualise all the career pathways available to them in the commercial and asset finance sector, and give them the support and inspiration they need to take the next stepintheircareerjourney.

The Women of CAFBA are passionate about building a strong cohort of female members and we are committed to fostering a more diverse and genderequitable finance industry by promoting diversity, increasing visibility and empowering women to find theirpathtosuccess.

Each networking event focuses on promoting diversity of thought, increasing visibility and empowering women at all stages of their careers. It is this combination that drives our daily efforts and brings us closertoachievingourmission.

We are proud to have many individual brokers and a large number of organisations who support CAFBA and our initiatives to increase gender diversity within our industry through programs such as Women of CAFBA and our Women & Leadership Australia scholarships, both of which focus on exploring new ideas and promoting diversity of thought within our industry.

At Women of CAFBA, we aim to address the underrepresentation of women in commercial & asset finance and alter the public's perception of what an expert in our industry looks like. We believe that by increasing the visibility of today's female finance professionals we can inspire the next generation of womentoachievetheserolesthemselves.

9. Women in Leadership Scholarship Program

A core strategy of CAFBA is to increase the representationofwomenincommercialfinance.

One of the great successes of CAFBA over the past few years has been the continued support of the Women andLeadershipAustralia(WLA)scholarshipprogram.

For the past seven years, CAFBA have partnered with Women & Leadership Australia to address gender imbalance in the commercial and equipment finance industry by supporting more women to build their leadership capability through world-class leadership developmentprograms.

67 scholarships have been provided so far to CAFBA women through this partnership to undertake one of Women & Leadership Australia's flagship leadership development programs, and graduates have found their experience to be enriching and beneficial, both personallyandprofessionally.

The programs unlock leadership potential, build confidence, reflect and open up networking opportunitiestolearnfromwomenacrossfinanceand otherindustries.

The scholarships cover part of the cost of the course, however as in the past CAFBA looks to our affiliate members to assist with the balance of the program fees,andweappreciatethisgeneroussupport.

Sharon Piening

Clare George

Tina Clark

Jane Lorimer

Lisa Shepherd

Lauren Murray

Jenny Phung

Jessica Arabia

Leesa Abrams

Danielle Barilla

Andrea Riddell

Executive Ready Program

• SamanthaHopper-FDFinance

• Emily-JaneForbes-PodiumEquipmentFinance

Advanced Leadership Program

• DeniseJackson-AClassBusinessFinance

10. CLYP Commercial Lending Young Professionals

In 2022 the CLYP team held a strategy workshop to reset our mission, vision, and values. We are proud of what we developed and believe these will be guiding principles to help CLYP continue to grow next year and intothefuture.Youcanseeourrefinedmission,vision, and values below. In essence our purpose remains the

same as it has always been: to connect the younger generation working in commercial finance, provide events, support with education, and create an excellentcultureintheindustry.

This year we also partnered with great lenders such as Metro (who also won Financier of the Year at the CAFBA awards), to put on CLYP networking events in Sydney, Melbourne, and Brisbane. Seeing the up-andcoming brokers get together reinforces why it is so important to build connections in the industry as it continuestoevolve.

The “young” people you meet today at a CLYP event might end up the “old and wise” leaders in our industry in the future. It is important to build your network before you need it and contribute to the amazingindustryweareallapartof.

11.Awards

CAFBA held our Annual Conference and Awards Night in November, and after the events of the past two years, it was a pleasure to once again enjoy each other's company in person. The Awards Gala was a night of great fun and offered a relaxed environment for the industry to come back together. With over 400 people attending the Awards dinner, the night's theme of “Back Together Again” was particularly relevant.

Congratulations to all the award winners. The Broker Awards called for nominations based on criteria that aligned with CAFBA values and strategic direction. This included addressing the gender imbalance in our industry, diversity and education and training, whilst alsoadheringtoCAFBA'sprofessionalstandards.

For the Financier Awards CAFBA surveys members annually to ascertain the CAFBA Financier of the Year. All the major Australian financiers are Affiliate Members of CAFBA, who provide an important service to the broker community. CAFBA recognises this contribution and works closely with the financiers for the benefit of the commercial and equipment finance industry.

The Financier of the Year award is keenly sought by the commercial finance lenders. The voting categories of these awards have remained the same since their inception, and this year, for the first time in many years, a non-bank lender took out the award. Congratulations to Metro Finance, who are demonstrating a changing dynamic in the commercial lendingspace.

At the Awards night CAFBA also pays recognition to those that have made a significant contribution to the industry. This year we were pleased to make four awardsinthesecategoriesforexcellentservice.

•

Our industry is experiencing a period of rapid change, and it is encouraging to see so many of our members managing to provide a level of excellence in their servicewhileevolvingtothischanginglandscape.

This year's conference offered a range of informative content and thought-provoking ideas, with a number of panels and speakers from industry leading figures. The highlight of the conference was the launch of the CLFP, with the CEO of the United States based CLFP Foundation Reid Raykovich in attendance. The CLFP furthers CAFBA's commitment to education as a means of maintaining our industry's self-regulating framework and represents the pinnacle of a commercialbroker'seducation,whileofferingaspiring commercialbrokersaclearpathwayintotheindustry.

Thank you to all our speakers and panelists who made the2022AnnualConferencesuchasuccess.Particular acknowledgement to CBA, our Platinum sponsor and to Gold sponsors ANZ, BOQ Finance, Flexicommercial, thePCFGroupandWestpac.

Broker of the Year

First JoelQuartermaine PacificFinanceAust

Second Andrew Kelly Anasta Finance Consulting Pty Ltd

Third Jake Girke Access Capital Pty Ltd

Emerging Broker of the Year

First ChrisGarner QPFFinanceGroup Second William Hamer Hamer Finance Third Jackson Atto Moody Kiddell & Partners

Emerging Broker Firm of the Year

First TalktoaBroker

Second Loan Options.ai Third Podium Equipment Finance

Broker Firm of the Year (more than 5 business Writers) First QPFFinanceGroup

Second Magnolia Lane Financial Services Third Moody Kiddell & Partners

Broker Firm of the Year (less than 5 business Writers) First TalktoaBroker

Second Halcyon Finance Pty Ltd Third Capital Plus Finance

Women in Finance Excellence Award

First CarolineGrima Consolidated OperationsGroup

Second Milena Franjic QPF Finance Group

Third Jane Lorimer Australiawide Finance

Women in Leadership Award

First KellieCrocker RLAFinance

Second Donelle Brooks Early Pay Third Denise Jackson A Class Business Finance

11.1 Financier of the Year

CAFBA surveys members annually to ascertain the CAFBA Financier of the Year. All the major Australian financiers are Affiliate Members of CAFBA, who provideanimportantservicetothebrokercommunity.

CAFBA recognises this contribution and works closely with the financiers for the benefit of the commercial andequipmentfinanceindustry.

The Financier of the Year award is keenly sought by the commercial finance lenders. The voting categories of these awards have remained the same since their inception. The categories to vote on the Financier of theYearare:

• Service • Attitude • Documentation • Pricing

Financier of the Year

First MetroFinance

Second WestpacEquipmentFinance Third FlexiCommercial Settlement Team of the Year

First MetroFinance

Second WestpacEquipmentFinance

Third FlexiCommercial

Credit Team of the Year

First MetroFinance

Second BankofQueensland

Third FlexiCommercial

Aggregator of the Year

First COGAggregation Second Connective Third CollegeCapital

FinTech of the Year

First Shift Second GrowFinance Third AngleFinance

CAFBA would like to congratulate not only the recipients, but all our Affiliate Members for their contribution.

11.2

Business Development Manager of the Year

CAFBA also awards a Business Development Manager (BDM) of the Year in each State, to acknowledge the workandservicethattheBDM'softheLendersprovide to the commercial brokers. Over time we believe this award will become just as prestigious and as keenly soughtastheFinancieroftheYear.

NSW

First PatrickNetrayana FlexiCommercial

Second MarkHoban MetroFinancePtyLtd Third GeorgeSteele GrowFinance

QLD

First MykolasKaliacius FlexiCommercial Second TonyNicol MetroFinancePtyLtd Third DarrylJenkin FlexiCommercial

VIC

First ChrisVogias CapitalFinance Second CraigFraser MetroFinance Third NarelleBruni PepperMoney

SA

First GaryWalker BOQ Second HaydenLever CapitalFinance Third MarkKerin CBA WA

First TonySalvia CBA Second DamianHatchley NAB Third JennyWhelan Westpac

TAS

First DavidJohns Westpac Second LisaCashin CBA

Awards

Broker of the Year Award Winner Joel Quartermaine presented by David Gandolfo

Emerging Broker of the Year Winner Chris Garner presented by George Karam

Emerging Broker Firm of the Year & Broker Firm of the Year (less than 5 Business Writers) Winner Talk to a Broker presented to Director William Hong by Neil Ferguson

Broker Firm of the Year (more than 5 Business Writers) Winner QPF presented by Terry Moody to Matt Crain

Women in Excellence Award Winner

Caroline Grima presented by Sharon Piening

Women in Leadership Award Winner Kellie Crocker presented by Melissa Rutherford of WLA

Financer, Settlement & Credit Team Of the Year Winners Metro Finance

Fintech of the Year Winner Shift

BDM's of the Year Winners Chris Vogias (VIC), Tony Salvia (WA), David Johns (TAS), Patrick Netrayan (NSW), Mykolas Kaliacius (QLD)

Aggregator of the Year Winner COG Aggregation presented by Domenic Lo Surdo to Mark Rayson

Financial Summary

Statement of Profit or Loss and Other Comprehensive Income for the Financial Year ended 30th June 2022

Revenue from Ordinary Activities

Award and Conference Expenses Consultancy Fees Donations

Event Expenses Professional Development Professional Fees Project Expenses

Promotion Expenses Scholarships & Education Education Council Funding Employee Benefits Expense Administration Expenses Community Advisory Services Travel & Accommodation

Total Expenditure

Surplus before Income Tax Income Tax benefit (expense) Surplus for the year

Operating Profit/(Loss) after Income Tax

Total Comprehensive Income

NOTE 2

2022 $ 952,838 (33,888) (25,003)(193,896) (21,289) (363,214)(93,109) (68,570)(156,076) (161,854) (38,400) (64,870) (1,220,169) (267,331) 11,109 (256,222) (256,222) 155,828

2021 $ 1,059,960 (70,980) (19,355) (6,200) (93,069) (37,177) (288,216) (27,784) (47,379) (75,790) (48,810) (49,366) (77,067)(51,656) (877,896) 182,064 (26,236) 155,828 155,828 155,828

Financial Summary

Statement of Changes in Equity for the Financial Year ended 30th June 2022

Balance at 1 July 2020 Surplus/(Deficit) for the year

Balance at 30 June 2021 Balance at 1 July 2022 Surplus/(Deficit) for the year

Balance at 30 June 2022

Retained Surplus $ 350,852 155,828 506,680 506,680 (256,222) 250,458

Total $ 350,852 155,828 506,680 506,680 (256,222) 250,458

Financial Summary

Statement of Cash Flows for the Financial Year ended 30th June 2022

NOTE

Cash Flows from Operating Activities

Receipts from Members and Others

Interest Received

Income Tax Paid Payments to Suppliers and employees

Net cash provided by/(used in) operating activities

Net increase/(decrease) in cash held

Cash and cash equivalents at the beginning of the year

Cash at end of Financial Year

2022 $ 882,892 147 (38,647) (1,137,151) (292,759) (292,759) 976,034 683,275

2021 $ 1,158,401 305 (18,203) (880,660) 259,843 259,843 716,191 976,034

CAFBA Honour Board

PAST PRESIDENTS

2008/09 David Gandolfo 2009/10 David Gandolfo 2010/11 Mark Rayson 2011/12 Mark Rayson 2012/13 Terry Moody 2013/14 Terry Moody 2014/15 Terry Moody 2015/16 David Gandolfo 2016/17 David Gandolfo 2017/18 David Gandolfo 2018/19 David Gandolfo 2019/20 David Gandolfo 2020/21 Matthew Atkin

LIFE MEMBERS

2013 Terry Moody 2013 David Gandolfo 2013 Kathryn Bordonaro 2022 Ian Elkner

SERVICE TO THE INDUSTRY AWARD

2014 Geoff Wallace 2016 Joe Terlato 2017 Ron Hardaker 2017 John Bills 2019 Barry Clarke 2020 Phil Botsis 2022 Peter Strong 2022 Michael Felton

Contribution to CAFBA Award 2014 Glenda Boschert 2018 Daryl Raggatt 2019 Mark Caddy 2019 Greg Moylan 2022 Graeme Latta CAFBA Financier of the Year AAFA/CAFBA Award Winners 1999 CBFC 2000 CBFC 2001 Suncorp Metway 2002 Westpac Equipment Finance 2003 Westpac Equipment Finance 2004 Macquarie Leasing 2005 Capital Finance Australia 2006 BOQ Equipment Finance 2007 BOQ Equipment Finance 2008 Westpac Equipment Finance 2009 BOQ Equipment Finance 2010 Macquarie Leasing 2011 Macquarie Leasing 2012 Capital Finance Australia 2013 Macquarie Leasing 2014 Westpac Equipment Finance 2015 Westpac Equipment Finance 2016 Westpac Equipment Finance 2017 Westpac Equipment Finance 2018 Capital Finance 2019 Westpac Equipment Finance 2020 Westpac Equipment Finance 2021 Westpac Equipment Finance 2022 Metro Finance

Service to the Industry Award Mike Felton

Service to the Industry Award Peter Strong

Commercial &

Finance Brokers Association of Australia